Prospecting is tough. Most sales people will prefer to get warm leads passed to them rather than cold calling strangers. All marketeers are under pressure to increase their flow of inbound leads for their sales teams.
It takes a lot of effort to reach new prospects, our goal at PFH is to profile and identify companies that we feel are a good fit to work with. Our sales people spend a lot of time on LinkedIn researching companies that will benefit from working with us. Once we identify the company, we then need to identify the right person within said same company.
To support our sales team, we also have a digital marketing team who work tirelessly to attract new prospects. When our digital marketing efforts deliver new opportunities for the sales team, the team is encouraged to gently nudge the prospect through the sales funnel by acting as a consultant rather than a sales agent. We focus on building credibility and part of this is to develop a positive relationship with the new customer.
It’s natural therefore to try and maximise these positive relationships to generate even more high-quality opportunities with even more new prospects. If you have pride in what you do and deliver a great service to your customers, then it’s only natural to ask them to refer you to other people within their network.
Of course, this is not new, we have always relied on referrals when choosing people to purchase from; people will recommend mechanics, doctors or builders when they have received a great service.
Its human nature to want to help others who have treated you well and there is also a degree of personal pride when someone refers you to others because you have done a great job for them.
Personal referrals from friends and family are taken more seriously than most forms of advertising. We are still wired to trust people we know, more than search engine ads, websites and other forums telling us what we need to hear.
When salespeople receive a referral or personal introduction, their sales achievements increase dramatically.
How is this success attained?
1. Customer Acquisition
Over 90% of consumers say they trust referrals from people they know over adverts when it comes to buying decisions. Customers who receive a referral for a desired product or service are more likely to become new clients—by nearly 4 x times the rate of non-referred people. We trust that our friends and families won’t give us false information, and so we choose to purchase from the recommended provider
2. Customer Retentions
Referrals are a form of profiling. When someone refers someone else to a provider or product, it is usually because they think that that person will receive a great deal and will enjoy the experience. People will not make referrals if they think the provider will let them down and cause any embarrassment. Once the provider proves themselves to be credible the customer is more inclined to come back with repeat purchases.
With the knowledge that referred prospects have a higher rate of closing, bring repeat business, and are a source of greater value, it makes complete sense for salespeople to seek out referral business from existing clients.
If you are an existing satisfied customer of PFH, please do not be surprised (or offended) if you are asked by your Account Manager for a referral over the coming months. We will only ask if we feel you are happy with the service we are offering and if you choose to refer us to someone else in your network, we will be very grateful.