Referrals, leads, word of mouth, buzz marketing, viral marketing, networking, seven second introductions, elevator speeches, referral groups, business networking and social networking. It all blends, causing confusion, misunderstanding and a muddied mess in the business world.
You see it everyday, one networking event after another, business cards being passed, people shaking hands, and those ever so famous seven-second introductions being pitched. It’s the same people at every event, giving out the same cards, same pitch hoping for a different outcome.
We hear about networking as a way to grow our businesses, and everyone calls themselves networking experts. If you put the words “business networking” into Google, you will get 186,000,000 hits So called experts teach classes and workshops on how to do better seven second pitches, how to hand out their cards, what to do after the event, how to give more, and do more.
Recently I ask a young man how he got most of his business, “90% by Referral” he stated. When I ask what kind of system he had to generate and track that level of referrals his answer was; “I have a great yellow page ad that generates a lot of referrals for us.” While having a Yellow Page ad will create a lot of visibility for you it is not generating referrals.
What’s missing here? What is the plan? Where is the system? People who are networking have no idea where their business is coming from, who their referral sources are, what target market they are connecting with, or even if they are networking in the right place. When asked what their ROI is on all of their networking activities they will say things like, “Great” or “I have made a lot of business contacts and friends while networking”. Rarely if ever do they really know the ROI.
If business professionals are going to build their business by referral, there has to be a plan that goes beyond, what most networking gurus are teaching. Word of mouth does not mean business by referral, and Networking does not mean you will get referrals.
If you really want to build your business by referral, you have to develop a plan, a system. Much the same way as you developed a Marketing Plan.
Who are your customers, where do they live, what do they do, are they other businesses or are they consumers? Companies spend thousands of dollars every year identifying their target market, their customers. How much time have you spent, is your customer anybody who needs or wants your product or services:? What do you offer to your customers, and why do they come to you? Have you asked them? Who are your Referral Sources and what system do you have for motivating and training them?
Networking is very valuable, but learning how to develop a system is more important. Once the system is in place, and you know whom you want to connect with and whom your referral sources are you will then be able to choose the right places to network.
If you’re going to build a house you need to take some time and do your preparation, lay out the design, build the foundation, then build the building. Every step must be followed in the proper order. The same holds true when you are building your business by referral. Where is your plan, how is the foundation, or did you forget all of that and just start networking, hoping for best.
Here are 5 Tips for building a foundation before you start networking.
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The Fifth Step in the Referral Process
Saturday, August 10th, 2013Here is the one you have been looking for. The last step in the referral process is a relatively easy step for your referral source, assuming they have been trained properly. This is the step where the work you have done thus far turns into the possibility of business. It is the appointment. When trained correctly your referral source can now set up an appointment for you and the prospect to meet. They have done a good job identifying need and building your credibility when they offer your company as the solution, now they set the appointment.
This is your opportunity to meet the referred prospect, build some rapport with them and possibly close a deal. If your referral source has done a good job they have passed you a level 10 referral, which means the deal is done, all that is left is the paper work! The higher the level of the referral, the less work in the sales process you will have to do to close the deal. With proper training and preparation your referral source should be able to pass you high level referrals consistently.
Note: Anything your referral sources are doing for you, you should be doing the same for them.
It is important to remember in this step you have one key commitment to your referrals source, you must leave them looking good to the prospect, no matter what. That is what they trust you to do, if that means, walking away from the deal because it is not a good fit, that is your obligation to the referral source.
Remember: A referral is an opportunity to do business, it is not a guaranteed sale.
Once you have had the appointment with the prospect, don’t forget to call your referral source and let them know how the meeting went. Review your referral process and discuss what went well and what might have been done differently in the process.
Passing referrals is a business process and you should have a carefully constructed strategy around the getting and giving or referral. The process is much like dancing, you both must learn all the steps and practice them often. Both the referral source and you must be in sync with one another, constantly going over the steps and making sure the process is working for both of you otherwise, you may be stepping on someones toes.
Hazel Walker
Referral Institute, llc
BNI
hazel@bni.com
Tags: Hazel M. Walker, indianapolis small business, Last referral step, Leave them looking good, Referral source, The appointment
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