How Elite Sales Professionals Get Referrals (Again and Again) THH #003

RepVue analyzed 12,000 deals in the tech/Saas/IT industries and shared deals of $5,000 to $50,000 took 3.9% to 4.7% longer to close.

And deals under $5,000? Sales cycles increased by 9.2%

 It means more meetings, more stakeholders and more scrutiny on your deals. The net result...less time to prospect.

Founders, business owners and real estate leaders have shared similar stories too.

...but deals are still getting signed!

The good news? Deals are still happening, not as many, their taking longer, but still happening.

Most salespeople don't have a process to build pipeline from the deals they close. They don't seek referrals.

Missed Opportunities

We tend to have the limiting belief that we can ask for a referral only when the new customer has received value. Likely 6-12 months away.

Not to mention that if you work in a SAAS business with a defined industry/territory...the referral may not go to you.

So what happens? Most don't maintain a strong enough relationship with the buyer to ask after 6-12 months. And if you think the referral won't go to you...well why bother asking in the first place?

So nothing happens, we all get back to traditional prospecting.

The Happiness Index

When are people Happiest with your product?

Its the moment they buy. There is a tremendous amount of research to back this up.

Some buyers show happiness as excitement, usually for long term strategic investments.

Other buyers show happiness in the form of calmness. This is typically when they buy something that solves an immediate problem.

Making a decisions make people feel better.

This peak state of happiness is often missed by salespeople. Sales professionals always make the most of this to help even more people.

The upshot of referrals? less prospecting!

Two Elephants... 

This leaves not one, but two elephants in the room.

It the best time to ask for a referral is the moment a contract is signed, how do I do it?

And if the referral will go to someone else, why bother?

Let's tackle the referral going elsewhere. What happens when a lead falls between territories? It becomes a leadership call, and they decide where to route the new opportunity.

When this happens, leaders tend to want to be see as making a fair decision.

If you bring in referrals that go to other reps, you will get the lions-hare of leads that fall between territories.

On top of that, you are also "sharpening the saw" on a sales skill that you've been ignoring for a long time.

So how do you ask for referrals?

You need a simple process, and its to have a plan to ask for a referral. This starts towards the end of the sales process.

If you have a good feeling you will close the prospect, start working on your referral play.

Build a List of 7 People for your Referral Ask

Step 1: Go to the LinkedIn profile of the prospect about to sign.

Step 2: Check their connections (if its blue, you can click. Sometimes its greyed out due to the persons preferences)

Step 3: You can skim the list of connections for possible referrals.

Step 4: If you have Sales Navigator, you have 12 more search filters. You can add, 1st Connections, Role, location ect

Step 5: Make a list of 7 people for referrals (before the meeting).

If you can't see anyone connected to the person, then make your own list of 7 people. Try pick similar job roles, industry and cities. It gives a higher chance of them knowing someone.

The Prospect Signed...now what?

When the Customer Signs, Speak to them ASAP!

Pick up the phone and call them, arrange an online meeting or book a face to face within the next day or so. The sooner the better.

The conversation will be to congratulate them for becoming a customer. Remind them of the pain that will be solved because of the investment and an overview of what happens next.

p.s. if your company has swag e.g. coffee cups, t-shirts ect this is a great time to send it prolongs,.

Asking for the Referral

 Option 1: The Sandler Play

 "Have you ever heard of the circle?"

 If your on an online meeting or face to face, draw one.

Then ask "Who is the most famous person you ever met?"

"If I gave you $100, could you introduce me to them?"

Most people will laugh and say thats impossible, and you put them on the outer circle.

Then you show your list of people.

"I'm reaching out to these people in the next few days, do you know any of them?"

"As you know (name), can I cc you on the email and mention that you decided to do business with me?"

You can stop here, but there is a further step you can take.

"How well do you know (name)?"

Make the Referral As Easy As Possible

"Would you be open to introducing me over email with me on CC?"

For this to happen, you need to make it as easy as possible.

Write the email and send it along with the email address of the person you will get the introduction too.

Once you go through your list ask "Who else do you recommend I contact?"

"When you get a few more names, ask if you were selling (your product), who would you contact first? why?"

Its as simple as that.

Don't Forget Timing & Tone

Never start a conversation looking for a referral. Discuss whats top of mind right now for your new customer. Offer some information and value before you make this ask. It is more credible and increases referrals significantly.

When you are talking use the tone (Its not big deal). Tone makes encounter's relaxed and make the customer more likely to offer referrals.

You can just share a list of names and skip the circle & famous person question. (But it does relax the person and make this part of the conversation more fun.)

1. List the deals you closed over the last 3 months.
2. List the deals you will close over the next month.
3. List the decision makers who signed/will sign.
4. List 7 possible referrals for each person.

Why 7 people? The idea is you gain 2-3 opportunities and close one, meaning less prospecting. 

If the deal is already closed, pick up the phone or arrange a call! 

If the deal is pending signature, have your list ready to call the moment they sign. 

And remember, a referral from someone who didn't buy isn't worth anything. You lose too much credibility when the person referring you isn't a customer. 

Thats all for this week!

Regards,

Paul M. Caffrey,