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By
James A. Baker
Chairman
Baker
Communications
May 2009
(Reprint from 2006)
I think it was Mark Twain who said
that everybody talks about the weather but no one ever does anything
about it. Well, in sales a rough comparison might be that everyone
talks about referral selling, but when everything is said and done,
more gets said than gets done.
In some ways, successful referral selling is like the Holy Grail of
selling. Research regularly confirms that sales contacts made via a
trusted referral source close at much higher rates than contacts
made through any other method – often 50% or even higher. Who
wouldn’t love to go into a sales presentation knowing that your
chances of success were already that high? For this reason, everyone
talks about referrals – how to get them, how to use them, how to
maximize the opportunity that is obviously there. However, for a
significant number of sales reps, referrals never quite live up to
the hype. What is the problem?
Well, to start with, some reps are simply uncomfortable with asking
for referrals. In a way, it is like a sale within a sale. You have
invested a lot of energy and emotion into closing this customer.
Now, asking for a referral kind of feels like starting all over
again, running the risk of hearing “No” and maybe damaging a
relationship that is just starting to go well. It all feels too
risky. So, these reps tell themselves that asking for a referral is
still a good idea, but the timing is just not right. They intend to
ask later but, in truth, they are already snake bit. They will
probably never get around to asking.
The best way to turn this story around and boost your success rate
with referrals is to change your perspective about what is – or what
should be – happening here. Selling is based on building the proper
relationships between sales rep and customer (as opposed to order
taking, which is a more mechanical, casual process that can be done
by anyone with very little work or training.) The most effective
sales reps are the ones who have cultivated the art of building
healthy relationships with their customers. When the relationship is
strong and healthy – which is to say it feels safe and comfortable
for everyone – the level of cooperation and collaboration goes way
up. This phenomenon can be described in one word – TRUST. When your
customer trusts you, it opens doors that would be closed to others.
A word to the wise here: in order to open the door to obtaining high
quality, profitable referrals, first concentrate on developing
genuine trust with your current customers.
Here are five important steps that will help you build trust with
your customers:
1. Become a consultant who solves problems instead of a
“salesman” who pushes products. – Take plenty of time to get to
know your customer. Ask good questions, listen carefully, make sure
you understand your customer’s needs and problems, and then offer
options and solutions that make sense to the customer, instead of
just selling what you have.
2. Maintain a high ethical standard at all times. – Always
put the needs of the customer ahead of your own, project a
professional image at all times and always keep your promises, even
if it ends up costing you something extra in the short term.
3. Make sure you are confident and competent in all your dealings
with your customer. – Be proud of your company and enthusiastic
about your product, without being pushy or obnoxious. Make sure you
are the “expert” in the room when it comes to your products, and
those of your competitors, but never talk down to customers or speak
ill of your competitors. Above all, be sure to thoroughly connect
the dots between the needs or desires your customer has expressed to
you and the benefits of the product or solution you are
recommending. This transaction is about the customer and his needs,
not about you and your desire to sell your products.
4. Protect your credibility. It is all you really have. –
Credibility is another way of saying trustworthiness, and since we
are talking about building trust here, this is obviously a very
important point. You establish credibility by getting involved with
helping your client solve his problem – through probing, listening
and offering the right solution to meet the need. You protect and
build on that credibility by staying involved after the sale is
closed. This can be as simple as checking in regularly to see how
things are going and finding ways to add extra value after deal is
done. These check-ins are NOT for the purpose of seeing if the
client is ready to buy something else. You are there to serve the
customer, not the other way around. As the customer begins to get to
know you, and realizes that you are interested in meeting needs
instead of pushing products, his respect and trust for you will go
way up.
5. Always treat the customer with respect. – Nobody likes the
feeling of being “sold,” not even you. Push a product and you may
sell something once. Build a relationship on respect and meeting
needs, and you will create a relationship of trust that will keep on
selling for a long time.
What does all of this have to do with referrals? Simple. The more
you meet these standards of caring and respect with your customer,
they more he will trust and respect you. Not only will he be more
than happy to help you by providing referrals, he will probably
already be telling his colleagues and friends about you, even if you
never ask.
James A. Baker is the Chairman and Founder of Baker
Communications. Baker is a sales training and development company
specializing in helping client companies increase their sales and
profits. He can be reached at 713-627-7700 or at Jim.Baker@BakerCommunications.com.
Re-Print Permission
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appropriate business related publication.
May Sales Quick Tip of the Month – Counter Discounting with
Value
One of the most universal complaints heard from sales managers is
that their sales reps are being pressured to discount price in order
to be competitive in the eyes of customers. Of course, the more you
discount, the more you have to boost volume but, in the meantime,
customers expect you to discount even more. Keep that up and pretty
soon you are out of business. As a rule, discounting to stay
competitive is a bad idea. If your price is fair to you and to your
customer, change the subject. Get the conversation off of price and
onto value. Emphasize how well the product meets the customer’s
specific needs. Carefully explain things like your superior product
quality, outstanding warranty and stellar service. Help the customer
clearly understand that he is getting much more for the money, and
be enthusiastic about the opportunity. Customers will always ask for
discounts, but that doesn’t mean you can’t close the deal without
one. Act like your product is worth it, and they are much more
likely to feel that way, too.
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