Build Your Referral System

Referrals are your best source of future prospects and can be one of the most economical prospecting methods you will ever use. However, before asking for referrals effective customer service techniques must be implemented.

Before you can ask clients for referrals, you must be sure they are pleased with the product or service they have received. Prior to implementing a successful referral process, effective customer service techniques must be practical, or they are unlikely to be carried out. Most of the customer service techniques are simple and can be easily carried out. This is about doing what you say you will do. Remember: Always under promise and over deliver.

Great customer service builds great relationships.

Be attentive to customers, it will gain customer loyalty and acquire new customers. When customers receive proper attention, they often feel that they are getting their money's worth and that their needs are being satisfied. It is also important for sales professionals to solicit customer opinions often about how products or services can be improved so that customers feel valued. In addition, sales professionals and then-clients can brain-storm regarding cost-saving methods, thus creating customer loyalty by accommodating customers' needs. By taking time at the beginning of a sales negotiation to create better customer service, sales professionals can ensure that customers' needs are being met while maintaining good relations.

Sales professionals need to work "smarter" to meet customers' needs instead of simply closing sales. These simple, inexpensive methods of customer service will establish good relations with customers, which is the prerequisite for requesting referrals.

When should you ask for referrals?

Is it better to ask clients for referrals during the sales closing or during the client follow-up? According to several sales process experts client follow-up is the best time to ask for referrals. Wait until you know that the customer is pleased with your service.

There are several ways to implement the referral process.

1. The direct approach, which involves asking customers for referrals after the customer-service techniques have been implemented. If customers do not immediately give recommendations, then the sales professional could mention colleagues or businesses associated with the customers. This will help customers to remember their business contacts, and usually they will give referrals.
2. Offer incentives to customers for referrals. For example, sales professionals/management could offer a 10 percent discount on the next purchase or contract after customers' referrals become new customers.
3. Give gifts to show appreciation. This can be as simple as inviting customers to lunch (under the presumption of showing appreciation), at which time you can easily request a referral.
   

Requesting referrals and implementing the referral system are both very basic. First, build a relationship with customers. Once you are confident that a customer has a favorable attitude and opinion of you and your company, it is the ideal time to begin requesting customer referrals. These referrals include the customer's colleagues, friends, or competitors, which can create a huge network and more sales. It is mandatory, once a referral system is implemented, that you create, maintain, and improve relationships with new customers while continuing to build networks.

Always remember these new customers are candidates for additional referrals. Sales professionals who continue to build this process and improve their customer relations will see a significant improvement in their overall dollar sales and number of customer accounts.