Referrals are the most valuable types of leads for any business. A recommendation from a trusted source is a vote of confidence for your company. Referral leads come to you with a certain level of trust built-in, but learning how to ask for referrals can be difficult for business owners.
If you don’t have a referral program in place, the best step that you can take is to ask your current clients if they know anyone that might be interested in your services. It can be a bit nerve-racking the first time that you ask. After all, you don’t want to put your clients in an uncomfortable situation. This is a common fear but is often an unfounded one. Remember that when you provide a great service, your clients will often be happy to recommend you to trusted friends. They will also see the recommendation as a way to build trust and further business relationships with the referred party.
If you would like to attract more referrals from existing clients, here is a step-by-step process for starting the conversation.
Asking for a referral isn’t a big deal when you do great work that your clients love. Sometimes they may need a bit of a nudge to remember exactly how much value you provide to their business. By encouraging them to think about the value you bring to the table, you can push them to consider other business owners that might be interested in the same. Partnerships that provide a valuable return for them may also be valuable assets to their business connections.
Every business owner knows what a nightmare it can be to take on the wrong client. It's always best to focus your efforts on a client that would be an ideal fit. Making the industries or types of companies that you work with clear can prevent a lot of headaches down the road. Additionally, you want to point your clients in the right direction as they consider possible referrals. Let them know exactly what type of businesses you are interested in working with and see if they know anyone that might fit the bill. Mentioning your ideal client can jump-start brainstorming that leads to a recommendation they would have otherwise overlooked.
People are a lot more likely to help out a friend when it is mutually beneficial. Consider ways to provide value in exchange for a referral. You could offer them a small discount, provide some services for free, or even send them a finder’s fee for helping you to secure a new account. You don’t have to go overboard, but providing a small return in exchange for a referral can make it that much more worthwhile for current clients. Remember that some clients will see benefits in simply making the recommendation. Helping other companies improves relationships and strengthens bonds. Drive home how valuable the referral process is for all parties involved.
Managed service providers often have a lot of insight into their client’s businesses. You may be aware of a few different companies that they work with, or have insight into their broader business relationships. If you know that they have a connection to a company that your services would benefit, there is nothing wrong with making the suggestion. Be active in the companies that you target for referrals. After all, your client may never think to recommend you to a friend on their own.
Once you’ve identified that they know someone who might be a good fit, be forward. Ask for an introduction. Nine times out of ten, your client will be happy to, at the very least, introduce you or outright recommend your service. You've spent a lot of time building a positive relationship with your clients. It would be silly not to leverage those relationships for more business. An introduction in itself is valuable even if it doesn’t result in the sale, as it creates familiarity and could lead to a sale down the road.
Although it seems like common sense, make sure that you follow through. Call the referral when you say you will. Promptly provide any benefits that you offered in exchange for the referral. Put together proposals in a timely fashion. With the built-in trust that you have from your referral, displaying reliability, professionalism and follow-through can go a long way toward sealing a new contract.
There is no quote that shows the importance of asking for referrals more than this one:
“91% will give referrals if asked. Only 11% will ask.” - Dale Carnegie
Want to learn more about how to identify your ideal customer? Download our webinar, featuring MSP Coach Richard Tubb: