Tag Archives for " Relationship management "

Keep Those Referrals Rolling In!

Did you know that a tiny part of the brain called the hypothalamus helps regulate things like thirst, hunger, parental behaviour, pain and pleasure?  It’s true and the hypothalamus likes validation, it registers pleasure in helping others and being rewarded for helping others.  In fact it’s the place for us to recognize we need to belong to something bigger than just ourselves.

So what you ask…

Well what are Christmas and the holiday break all about?  Helping and rewarding others by giving gifts and recognition to those we have worked with during the year.  We can satisfy the urge of the hypothalamus by giving all year around in fact!

In fact for good referrers it’s Christmas all year!

As human beings we are actually naturally wired to make referrals and it is a satisfying urge, which can and should be satisfied all year around.  Just because Christmas is around the corner doesn’t mean that business stops and that referrals stop as well.

In order to maintain that good feeling and keep out hypothalamus humming all year follow these five simple points.

  1. 1. Refer to Build Your Business

It’s true and we know that the more referrals we give, the more we get, so give referrals and watch your business grow.  Referrals build our social currency and bring us to the forefront of other business owner’s minds.  By providing a referral we make a little deposit into their referral bank account.  Eventually we will either be able to withdraw or be given deposits of our own.

  1. 2. Making Referrals Involves Some Risk

Again the hypothalamus monitors fear, so make sure that you have confidence in the person you are referring.  More importantly make sure that they trust you so they will be confident to refer you in return.  Trust underpins all referrals and business will evaporate if no trust exists.

  1. 3. Boring Businesses Miss out on Referrals

Back to that hypothalamus again, remember it registers pain and pleasure.  Make sure your business is a pleasure to deal with, make it easy for others to refer you.  Take the time to educate your contact sphere about the exciting aspects of your business that will make you or your product more saleable.

  1. 4. Be Committed, Turn Up, Participate

Consistency builds more and more trust.  If you consistently turn up at your local networking group meeting, participate fully, give referrals and do 1-2-1 meetings, other group members know that you are serious and will work harder to support you in return.

  1. 5. Follow the System

A fully functioning business is simply put a set of systems or processes put into place to reach a desired outcome.  Generating referrals is about following a system. Having a Relationship Marketing Plan is the key to a successful system this includes a referral marketing vision, clear goals and an action plan to make your system work.

Remember a happy hypothalamus is a referring hypothalamus!

© Lindsay Adams 2018.  All rights reserved.

Lindsay Adams is a relationship management specialist, he works with leaders who want to leverage the power of relationships, to lead better, sell more and build better teams.

www.lindsayadams.com

Lindsay@lindsayadams.com

I Get Lots of Referrals, I Don’t Need to Sell as Well Do I?

Lets get one thing straight, just because someone gives you a business referral, doesn’t mean you automatically have a sale.  This referral is simply an opportunity to do business with someone who you have been recommended to.  If you can provide the expected products or services that the prospect is seeking and they are satisfied with the process, then you may have the privilege of doing business again.  If you can’t get this first sale across the line your referral source will most probably dry up.

The issue here revolves around your ability to sell.  Anyone who has experience in relationship marketing will tell you unequivocally that sales skills are essential as well as relationship marketing skills.  In fact sales skills are needed in every part of the process, not just closing the sale.

Dr Ivan Misner the father of modern networking researched referrals versus sales in the early 90’s.  He found that thirty four percent of referrals made between business’ owners resulted in recorded sales.  An interesting statistic, not amazingly high, though significant for business owners in terms of the power of referrals versus sales.

Subsequent research by a university student replicating Misner’s original research conducted around ten years later revealed some more interesting facts.  Thirty four percent of referrals made between business owners resulted in a recorded sale.  Yes you are suffering from déjà vu.  The exact same result as ten years before!

What does this mean for business people?  Sales skills are important and some people are better at closing sales rather than others.  However one does not exist without the other.  You are thirty four percent more likely to make a sale if you get a referral and sales skills are an essential ingredient of that process.  There are countless avenues available today to learn the art of sales

The worst thing that you can do after you receive a referral is to be aggressive, indecisive or evasive.  The prospect wants and expects a high level of respect, service and professionalism.  Remember this is a win-win situation and the better you come across at this stage, the better it will be for both parties.  You get the business, they get the goods or service.

Once you meet your prospect, you have to persuade them to bring the sale to a close.  This is what people think of when you suggest the term sale.

Third, once you’ve made the appointment, persuade the prospect to buy your product or service.  This is the part that usually comes to mind when one hears the word “sale.” Integrity is paramount at this stage.  The prospect should know exactly what to expect: no hidden charges, no unexpected exceptions and no bait-and-switch.  If you’ve created a highly efficient system of generating referrals for your business, you’ll see a steady stream of referrals.  This doesn’t guarantee that you’ll be capable of closing any of them.  It takes sales skills to turn prospects into new clients or customers.

The message about sales in referral marketing is this: If you’re not comfortable in sales or if you haven’t been professionally trained, sales training is a worthwhile investment.  Keep this message in mind and it’ll serve you well in every aspect of relationship marketing.

© Lindsay Adams 2018.  All rights reserved.

Lindsay Adams is a relationship management specialist, he works with leaders who want to leverage the power of relationships, to lead better, sell more and build better teams.

www.lindsayadams.com

Lindsay@lindsayadams.com