Roger M. Pell
Sales research shows that it takes salespeople one-half the time to sell a qualified, referred lead than it does to sell a nonqualified, nonreferred lead.
This means you will close sales with
40-60% of your qualified, referred leads, but only 10% of your nonqualified, nonreferred leads. Following that logic, you can quadruple your sales by increasing your number of qualified leads. To create your data bank of qualified leads, here is a list of potential sources for new referrals.
New Customers. They are enthusiastic and happy with their new purchases, and anxious to tell their colleagues about the benefits. Don't be hesitant to ask a new customer for a referral for fear of undoing the sale. If you sold the product the right way, it will stay sold.
Existing Customers. When you sell 'em, don't forget 'em! Existing customers can be a prime referral source. Courtesy calls can result in referrals as often as 50% of the time.
Business Acquaintances. Even if they are not one of your customers, business acquaintances can still serve as an excellent source of referrals.
Noncompetitive Salespeople. You may overlook other salespeople as a referral source. But they can have specific knowledge about the prospect to give you the best approach to making the sale.
Prospects That You Don't Sell. Many prospects who don't buy are eager to reward you if you have done a good job of understanding their needs, and will give you names of prospects that they know will buy from you.
Non-Prospects. Select a contact who is not a prospect, but who is familiar enough with your products to help you identify prospects.
Social Contacts. People buy when they like you, and you are more successful when dealing with prospects that you like.
After you've chosen your new source of referrals, the next step is to qualify the referred prospects' names as you get them. You can do that easily by asking appropriate open-ended questions and using instructional statements like, "Why do you feel they may have an interest right now?" or "Tell me why you say that."
There are several ways to approach these referred prospects. One way is to get pre-printed 3" x 5" cards with a place for your referral to sign the new prospect's name and his or her own name.
Another powerful approach is to have your referral write a note on the back of his or her business card, recommending your services to the new prospect. Or you could have the referral type a letter on his or her personal stationery. And still another way to make that first contact is to ask your referrer to telephone the prospect while you are still in the referrer's office.
One last thought... don't put off calling a new prospect. The longer you wait, the colder the trail gets.