How do you set realistic goals with referrals?

1 Define your referral goals

The first step to setting realistic goals with referrals is to define what you want to achieve and why. Your referral goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, you might want to increase your referral rate by 10% in the next quarter, or get 20 referrals from your top customers by the end of the year. Your goals should also align with your overall sales objectives and strategy, and reflect the value and quality of your referrals.

2 Measure your referral performance

The next step to setting realistic goals with referrals is to measure your current performance and track your progress. You need to have a system to record and analyze your referral sources, numbers, types, and outcomes. You can use a CRM tool, a spreadsheet, or a dashboard to keep track of your referral data. You should also monitor your referral conversion rate, which is the percentage of referrals that turn into sales. This will help you identify your most effective referral sources and methods, and adjust your goals and actions accordingly.

3 Achieve your referral goals

The final step to setting realistic goals with referrals is to take action and implement your plan. You need to have a clear and consistent process to ask for, receive, and follow up on referrals. You should also have a way to reward and thank your referral sources, such as sending a note, a gift, or a commission. You should also communicate your goals and expectations to your referral sources, and provide them with the necessary information and tools to make quality referrals. For example, you can create a referral script, a landing page, or a brochure that they can use to introduce you to their contacts.

4 Avoid common referral mistakes

Setting and achieving realistic goals with referrals can boost your outside sales performance, however, there are some common mistakes to avoid. For instance, you should ask for referrals when you have established trust and value with your customers, and when they are satisfied and happy with your solution. Asking too early or too late can miss the opportunity or lose the momentum. Additionally, you should ask for referrals that match your ideal customer profile, and that have a specific need or problem that you can solve. Asking too broadly or too narrowly can result in low-quality or irrelevant leads. Furthermore, you should treat your referrals with respect and professionalism, and follow up with them promptly and appropriately. Neglecting or pressuring your referrals can lead to losing interest or trust.

5 Benefits of realistic referral goals

Setting realistic goals with referrals can have many benefits for your outside sales success. For instance, referrals can increase your sales productivity and efficiency by reducing prospecting time and cost, as well as shortening the sales cycle and improving retention and loyalty rates. They can also enhance your sales reputation and credibility by boosting brand awareness and visibility, and generating positive word-of-mouth and social proof. Additionally, referrals can help you expand your sales network and opportunities, allowing you to reach new markets, access decision-makers and influencers, create strategic partnerships, and cross-sell and upsell solutions.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?