Hi all,
I’m swamped. Just swamped. Well not really; I played golf the day I was supposed to write a post, so my friend Andrew is here to the rescue with this guest post about referral programs. Enjoy!
Every business leader thinks about generating new sales. So, let me ask you a quick question about where your new business comes from: What percentage comes from referrals?
Don’t panic if you don’t know. In fact, business leaders and sales professionals across all industries have trouble answering that question accurately. After all, the world of referrals is very messy. Just consider all the types of referral sources that could, if managed well, be bringing you the kind of business you want:
- Re-sellers/Channels who complement your product/service
- Customers/Clients– past and present– who recognize the value you bring
- Partners and allianceswho look for ways to work closely with you
- Analysts and product/service reviewers who assess your strengths
- Members of the media/influencers on social media who shape opinion
- Suppliers and employees
Did I say the world of referrals is ‘messy’? I meant a potential shambles.
But, here’s the good news: Managing referrals effectively so that you achieve your revenue targets is do-able. But, it takes a bit of discipline. So, let’s dig a little deeper by looking at these types of referrals and map them against two key qualities that are essential for them to be effective. And by that, I mean, being able to shorten the sales cycle and increase the volume of new sales opportunities:
Key Referral Quality #1: How well the type of referral source knows your organization.
To bring you business opportunities that you want, referral sources need to understand: your product/service offerings, what’s unique about your company, and your company’s culture.
Key Referral Quality #2: How well the type of referral source knows your targeted companies.
At the same time, referral sources need to understand your preferred, or targeted, companies in ways that go beyond answering the BANT (i.e. budget, authority, need, and timetable) questions. They also must have a handle on targets’ goals, their plans to pursue these goals, and the challenges preventing them from reaching their goals.
That might seem obvious, but, you’d be surprised how much effort and resources are spent on engaging referral sources that lack both these qualities.
So,to help you focus your time on leveraging those referral sources that will have the most positive impact on your sales funnel, consider the following mapping. (Just keep in mind this serves as a starting point. There are outliers and exceptions for every referral source type.)
Andrew Brown is Founder and Chief Innovation Officer of Bridgemaker Referral Programs. He is the lead author of the ‘How to Grow Your Business Through Better Relationships’ series – which includes books on getting the most from referral sources, channel partners, and strategic alliances.
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