Cold Calls Vs Referrals
Why would a seasoned professional sales person feel more comfortable performing cold calls than working a referral program? It has to be comfort level, where the salesperson has totally incorporated the 3SW rule (some will, some won't so what, next), whereas a referral program is working with your KLT's (people who Know, Like and Trust you), asking for their help.
Perhaps asking for help implies that you can't accomplish your plan without help, that you are less of a salesperson.
As a licensed professional business coach, training sales teams to reach desired goals, I find an enormous amount of resistance for seasoned professionals when teaching a referral program that has worked well with every organization I have taught it to.
The "newbies" generally take to it like ducks to water, perhaps because they have not become comfortable with the 3SW process.
While reviewing the results of a sales team recently, after 4 month of coaching, I asked for statistic on sales calls (potentially new customers or prior customers who had not purchased in a period of time), wins (purchase activities), and referrals.
A long time sales professional indicated that it took 30+ sales calls to get a win when it was a cold call.
The newbie's experience was exactly the same however, she had many more wins.
When asked why she said that referrals' conversion rate was over 80%, she was concentrating of referrals from KLT's.
Her average sale was also higher; her new clients were coming with a comfort level that cold call clients had to achieve over a longer period of time.
There are a couple of key factors when asking for referrals.
First, you have to know who your ideal client is and are able to define them to your KLT.
By mentioning several identifiers the KLT has to be able to se the prospective client in their minds eye, the more specific the identity the easier it is.
Second, you need to limit the number of referrals expected, and be satisfied with one or two.
There is a process that makes the KLT extremely comfortable providing name and even making an introduction call on your behalf.
Third, and probably the most important, you must ask for help.
There is a psychological trigger pulled in the mind of a KLT when you are asking for help that makes people extend themselves, coming to your aid.
I don't know about you, but I like the ratio of 4 in 5 over 1 in 35, what about you?
Perhaps asking for help implies that you can't accomplish your plan without help, that you are less of a salesperson.
As a licensed professional business coach, training sales teams to reach desired goals, I find an enormous amount of resistance for seasoned professionals when teaching a referral program that has worked well with every organization I have taught it to.
The "newbies" generally take to it like ducks to water, perhaps because they have not become comfortable with the 3SW process.
While reviewing the results of a sales team recently, after 4 month of coaching, I asked for statistic on sales calls (potentially new customers or prior customers who had not purchased in a period of time), wins (purchase activities), and referrals.
A long time sales professional indicated that it took 30+ sales calls to get a win when it was a cold call.
The newbie's experience was exactly the same however, she had many more wins.
When asked why she said that referrals' conversion rate was over 80%, she was concentrating of referrals from KLT's.
Her average sale was also higher; her new clients were coming with a comfort level that cold call clients had to achieve over a longer period of time.
There are a couple of key factors when asking for referrals.
First, you have to know who your ideal client is and are able to define them to your KLT.
By mentioning several identifiers the KLT has to be able to se the prospective client in their minds eye, the more specific the identity the easier it is.
Second, you need to limit the number of referrals expected, and be satisfied with one or two.
There is a process that makes the KLT extremely comfortable providing name and even making an introduction call on your behalf.
Third, and probably the most important, you must ask for help.
There is a psychological trigger pulled in the mind of a KLT when you are asking for help that makes people extend themselves, coming to your aid.
I don't know about you, but I like the ratio of 4 in 5 over 1 in 35, what about you?
