When we put our focus on the needs of sales people, lead generation and sources of lead generation show up on the top of the list. When we examine closely, we realise, there is an under used lead sourcing method across the product types (b2b or b2c) – Referrals as a source of lead generation.
Why I am saying this –
As an urban Indian using apps like Zepto, Swiggy, Byjus and making payments using Gpay or phonepe, CRED I am quite familiar with the trend of “Refer a friend” programs. These apps or businesses are mostly D2C (the new age businesses) who are giving me and my referee a freebee or a discount whenever I refer.
So, it was natural for me to search for similar programs in other purchases I made and trust me it is barely visible.
To be more clear –
I got a new credit card that really came helpful during my new house furniture shopping. I bought a new 4 door refrigerator for our new home, a new water purifier system and much more. It’s been a year and I am satisfied with most of my purchases. With some products like credit cards, I received a call for upselling or cross selling but not asking for referrals but not even once I got a referral request from any of these product makers or brands or sales people. Neither I recollect filling a form which says, how likely are you to refer this product to your friends or colleagues.
My business friend does share that the situation is not any better with his b2b purchases and in some cases the sellers enthusiasm ended in just collecting the NPS (net promoter score) survey form. As a sales person, I can’t stop over thinking when he says that if the sales person from his banker were to stress upon referrals, he would have probably taken him to the community meet which was hosted for similar business people. A lost lead sourcing opportunity.
With this background, let me explain i) why referrals are a good lead source ii)how you or your sales teams can use this method more efficiently iii) Some reality checks
I. Why are referrals a good lead source
- Referrals come from your existing customers who experienced your product or service and trust you as an individual salesperson who sold that product or service.
- A potential buyer is influenced by your referrals because he was referred by a buyer who has used your product or service.
- As per Forbes, Referral programs are a source of high-quality leads with less effort
- Another study shows, word of mouth marketing influences 91% of b2b purchase decisions.
- HBR report – 90% of the b2b buyers start the purchase process with a peer recommendation.
- B2B business referral have a lot of weightages in shortening the sales cycles and higher winning rates.
Being in sales for so many years, connections played a vital role in increasing my portfolio, and referrals helped me to close sales faster with the relationship I had with my clients; they marketed me as a person and not the product or service I offered.
II. How you or your sales teams can use this method more efficiently
“Ask and it shall be given to you “
For the sake of business reference, I am borrowing a portion of a verse from one of the holy books – “Ask and it shall be given to you “
To get referral leads, first one must ask for it. Ask the right person or people in the client’s place and ask them for referrals at the right moment.
Ask the person who signed the deal or people who were part of the deal signing process. Sometimes, even gatekeepers who helped you get that business can refer you to other gatekeepers in other businesses. So, leave no stone.
The right time is definitely not immediately after the purchase (unlike in the case of those apps mentioned early on in this article). Help the client use the product or service he bought, take the feedback and ask for reference. This gets you more sincere leads from the customer and helps improve your pipeline.
Set some targets here –
You could set a target for yourself or for your team on the number of leads you want from referrals. The moment it is in target, there is greater accountability towards achieving it. Observe the impact in the pipeline.
Maintain or create a tracking system –
Referral leads must flow in a structured way so that the results can be tracked easily and learnings can be repeated. The initial effort is worth the results you achieve over a period of time.
Some salespeople will fear to ask for references by assuming the failure of the product or service they sold to the customer. In reality, the client might be actually happy with his purchase decision. So don’t assume, ask and know.
III. Some reality checks
Prepare the ground before asking for referrals. Get answers to some questions –
- What is the outcome of using your services or product?
- How much did your solutions solve the customer’s pain point, and are there any percentages or numbers the client can share?
- What is the level of client dependency on your product or service?
- Did they get delighted with the overall offer?
- Most importantly, do they have any complaints or unresolved service issues? Make a note.
Feedback management –
Feedbacks are not just collating questions, we should also develop the habit of acting on them to demonstrate how serious you are about the client’s business investment of money and time, as well as the value the client is getting from this partnership. Keep a track of all the issues and delivery, ensure your team is delivering the results and rectifying the issues. Notify the client on the progress. Focus on accessibility and convenience.
Research shows that customers who feel they made a good purchase with your product and services are likely to buy again and share a positive experience with others.
Resolving client issues –
When there are escalations or issues in services or products, pick up the phone and speak to the client. Clients expect someone to listen to their concerns and issues and expect faster resolutions. At times, issues go beyond our control and require internal follow-ups to get the work done. Most of the sales guys I’ve come across in fear of losing the client give false promises and timelines when they know there can be a delay in resolving. Take the internal stakeholder TAT and explain it clearly to the client. Ensure you are keeping track and providing timely updates and bringing it to closure.
To summarise, remember you are the face of the product or brand you sell; the client buys trusting you, and your customer’s success is your business’s success. In sales, it is the happy customer who will refer to you and introduce you.
