Referrals: The Best Way to Start a Relationship

by Sean Miller

We surveyed our clients and found that when looking for a service, the number one source people seek is a referral. In fact, word of mouth was equal to all other sources combined.

How do you get your best customers? Look at your client list and you’ll probably see that most came from referrals. That’s certainly true at our firm, and we depend on referrals (we call them “introductions”) to continue bringing in new clients.

We surveyed our clients and found that when looking for a service, the number one source people seek is a referral. In fact, word of mouth was equal to all other sour-ces combined!

The benefits of personal introductions are many:

- Your referral source can pre-screen prospects and tell you who to call … and who not to.

- They provide insight into a prospect’s business and personal interests to help you gain rapport.

- They can set up meetings that are much more enjoyable than a typical cold call.

- They give you instant credibility with the decision-maker.

- Finally, the endorsement you get from your referral source is stronger than any sales material, and it will take you a long way toward the sale.

A strong introduction is like starting on third base—rather than having to hit a triple.

Getting Referrals

First off, bad referrals are frustrating for both parties. So it’s crucial to know exactly who your “ideal client” is, in terms of ind-ustry, company size, location, the relationship you want—really, everything. Make it easy for your referral source to know exactly who you want to meet.

Focus on a single industry and become an expert on it. Most industries have associations, which is a great place to start. Sit down with your source and the association’s roster. Identify ideal prospects, and find out what your client thinks of them. You’ll be amazed at what you learn. Undoubtedly, there will be companies they steer you away from—and others they point you toward.

Have your client set up the meeting. And find out what they’ll be telling the prospect. For example, if they’re just going to say that they’d like to introduce their insurance agent, the prospect will most likely run and hide!

So remind your client about the great results you’ve gotten them. That way, they have a compelling story to tell and will be more enthusiastic about lining up the introduction.

Ask your client:

- Remember your situation before we met?

- Why did you choose us over all the other companies out there?

- What results have we delivered?

Once they answer these questions, they will have compelling reasons to set up an introduction.

Handling the Actual Meeting

Meals are a meeting preference of mine (and I like to pick up the check). However, social events, ball games and golf outings are other great ways to meet prospects while having fun. Try splitting a golf foursome with your referral source: You invite someone who can do business with them; they do the same for you.

Networking events like association meetings are also perfect for introductions. Clients are usually willing to introduce you around to their friends at these meetings.

Another fun way to get introductions is to do what we call a “Sales Blitz.” If you have another salesperson or professional (for example, a CPA, lawyer or banker) with business you can cross-sell, offer to spend a sales day with them.

In the morning, set up appointments with your clients who can benefit from their services. In the afternoon, meet with their clients who can use your services. By the end of the day, I guarantee you’ll have at least one or two solid opportunities.

You might be surprised at what your clients say about you. (Hopefully in a good way!) Make sure you thank—and even reward—them for the introduction. And be sure to follow up on the introduction and do all you’ve promised.

Introductions are a fun and effective way to build a great clientele. So pick up the phone, call your best customer, take them to lunch and get started.

Sean Miller is a chairman of the Robert E. Miller insurance Agency, based in Kansas City, MO. He can be reached by phone at 816-842-0944 or by email at sean@remins.com.