Its part technique and its part attitude. It has been called the most powerful selling and marketing tool available and is formally known as the best source of new business.

I’m talking about the elusive and all powerful referral.

Let’s face it, people would rather work with people they know, or at least people they know will do an excellent job. Think about it. What is more reassuring than a positive recommendation from someone you know? People are 4 times more likely to buy something when recommended by a friend and a whopping 65% of new business comes from referrals.

The reasoning is there, but what’s the best way to ask for a referral?

Happy Customers Generate Referrals

A happy customer is a referring customer. Impress them with your service, amaze them with your product and woo them with your follow up. If you knock a customer’s socks off with good service they will definitely tell people about you and would likely be more than happy to recommend some referrals to you.

It’s a give and take relationship and starts with the very first contact and continues through the entire selling and service process. Give customers a product they love and a positive experience to go with it and they will happily trade that for a favorable review or a referral.

When to Ask for Referrals

There is a right time and a wrong time to ask someone for referrals. You need to ask them when they are the happiest with your product or service. If a customer sees the benefit of your product or service the day they make the purchase, ask them for a referral or review then. But if they don't see real value until a month down the road you might want to wait a little while before asking for that referral. 

To help pinpoint this moment, find out what a customer expects from your product or service up front, in great detail, and follow up after the sale to make sure they are seeing the results they expected.

When a customer’s expectations are met or exceeded and they see you as a credible resource, offering a referral or recommending you to other people will be a comfortable next step or even become a natural reaction.

You don’t have to wait for that face-to-face or telephone conversation to ask for referrals either. With technology today one can follow up via email to see if a customer is satisfied and in the process ask for a referral or review.

The Right Way to Ask for Referrals

This isn’t about just flat out asking for a referral. It’s not quite that easy. There is some tact behind it, some finesse. How not to ask is easy.

• Do you know anyone else who would be interested in what we offer?
• Is there anyone you know that is thinking of buying something like this?

It’s almost like we expect the customer to pull a name out of a hat. It also comes off as more of a demand instead of a polite question. You are also asking them to make assumptions about other people’s needs, situation and level of interest. It may not seem like it, but it’s a rather big question you are throwing to your customers on the spot.

When you’re asking anyone for a referral it should be natural and should never feel forced. If you are rewarding people for their referrals make sure it doesn’t seem like you are buying them. Lots of companies offer incentives but sometimes it feels forced. Look at you’re currently offering and make sure you don’t come off as too transactional.

When asking for a referral, frame the question so that it helps bring specific people to mind. You want to help jog their memory for that friend or colleague that has a similar need or problem. Narrow down their choices for them by phrasing the question accordingly.

• Are any of your friends or peers experiencing similar issues with (insert common problem)?
• Has anyone in your office mentioned that they are dealing with the (insert common problem), like you?

Making a choice from a small group of options is a lot easier than choosing from a seemingly infinite number of choices. Ask them for a referral or a lead, but don’t be blunt. Have them think back to a particular instance when someone may have mentioned a similar problem or a time when they saw someone struggling with something you could help with. Recalling a situation is much easier than remembering a random person with a specific problem.

Handling Things with Care

Getting a referral is one of the best compliments a company can receive so make sure you thank them. Sending a thank you shouldn’t hinge on whether a referral turns into a successful sale or not, the thanks should be unconditional and sincere. If you do end up signing that referral, it’s a good idea to send a follow up thank you. This could go a long ways in the eyes of your customers and make them feel good about their recommendation. It might even result in more referrals.

It’s not just about sending thank yous either. Timing is everything. If you get a referral make sure you follow up in a timely manner. Letting a referral or lead drop through the cracks is one of the worst things you can do. You will definitely lose respect from your customer and a shot at a potentially great future customer. Handling a new lead with respect and in a punctual fashion will earn you respect from the prospect and help win them over. Setup a process for how to handle referrals so that none slip through the cracks, I guarantee it will pay off.

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