Sales trainees are taught that there are a number of ways to increase the sales in their assigned territory, thereby increasing their employer’s business and justifying their own existence. The sources of new business are, in order of importance to a new salesperson: New customers, increased business from existing customers and referrals. There are a number of sub-headings for each of these items. Referral business is relegated to least of importance because a new salesperson has yet to develop the sources, being too new to have a rapport with existing customers or other referral fountains. Referrals are, however, the source that experienced salespeople find are the best and most reliable source of prospective customers.

 

Referrals are a powerful tool for any salesperson. A referred customer is very likely to buy whatever has been referred to them. The referral removes many of the barriers to the sales and establishes the credibility of the salesperson, even before they make any presentation. They make the overall job easier and shorten the sales cycle. An established salesman will often rely almost exclusively on referrals for new business, but how do they develop those sources?

·        Review your entire customer base on a regular basis and determine who or what was responsible for each of them being a customer in the first place. It is easy to see which of them may be a prospective referral source if they themselves were referred or have a longstanding, beneficial relationship with your company. Cultivate the prospective referral sources by keeping in touch on a regular basis, providing something of value to them each time; product data, industry news, an article or book of interest to them or an invitation to lunch. 

·        Make sure that your customer understands your desire to help them with their business, not just sell them something. End all your contacts with a question, “How can I help you?” This shows you are client-focused and have their interests in the forefront of your mind. Ultimately your customer will want to help you by offering referrals, with only a few hints from you. One of the best hints is to offer referrals of prospects to them, to “help grow their business, like they have helped you by becoming your customer.”

·        If you aren’t very comfortable with a face-to-face referral request, write a nice letter thanking your customer for their business and their contribution to your business growth. Ask how you can help them further and close with a request for referrals. Letters have been working for internet marketers for years. Internet marketers also learned early on that a sales letter works best if you offer something for nothing, like a brochure or informative booklet.

·        Be sure to send thank-you letters for every referral you receive. If the referral results in a sale, send a gift of something personal like a fruit basket or candy. It will be appreciated and often result in more referrals.

·        Holidays are a good time to make a positive impression on your customers. Try something a little different as well as sending a greeting card. Remember birthdays; theirs and their family.

 

All of this requires that you acquire detailed information about your customers, but isn’t what salespeople are supposed to do? Keep good records and set up a program of reminders so you can act appropriately.