Referrals are one of the most powerful ways to grow your HR consulting business and build long-term client relationships. But how do you use them effectively and ethically? In this article, you will learn some best practices and tips to leverage referrals and turn them into loyal and satisfied clients.
Referrals are not only a source of new leads, but also a sign of trust and credibility. When someone refers you to their network, they are vouching for your expertise and value. This means that referrals are more likely to be qualified, interested, and ready to work with you than cold prospects. Referrals also help you reduce your marketing costs and time, as you don't have to spend as much on advertising or outreach.
When I started my HR consulting business 9 years ago, I was building on my 20 years of experience helping people understand both the requirements and the nuances of Human Resources. I loved the work, but at that time, I did not realize how much sales would be involved in running my own business. What I quickly learned is that without happy clients, there is no business. It was only by leveraging wonderful referrals that I was able to grow and expand my business. Understanding how to ask for and use referrals is one of the key elements of creating a sustainable business.
The best time to ask for referrals is when your clients are happy and satisfied with your work, such as after a successful project, a positive feedback, or a testimonial. There are several ways to ask for referrals, including sending a follow-up email or message thanking them for their business and asking if they know anyone who could benefit from your services. You can also offer an incentive or a discount for each referral they make, create a referral program or system that rewards them for spreading the word about you, and ask for permission to use their name or logo in your portfolio or website while mentioning that you are looking for more clients like them.
I generally ask for referrals and recommendations during a project. The timing of the request is crucial to getting a significant number of positive referrals. I found that if you wait until the project is over, the client has already moved on to other concerns, and follow-up is difficult.
Once you get a referral, it’s important to follow up promptly and professionally. Start by sending a personalized email or message, introducing yourself and explaining how you know the referrer and what you do. Then, provide some value or insight related to their pain points or goals. Ask for a call or meeting to discuss their needs and how you can help them. Finally, thank the referrer for the introduction and keep them updated on the progress.
Making a great first impression on a referral is essential for setting the tone of the relationship. You should strive to deliver value from the very beginning and throughout your engagement, such as by listening to their challenges and expectations with empathy and understanding. Additionally, provide clear and realistic proposals and contracts that outline your scope, deliverables, timeline, and fees. Additionally, stay in regular communication with them, report on your results and impact, ask for feedback and suggestions, and implement when appropriate. Going above and beyond their expectations with extra value or service is also a great way to make a strong impression.
The relationship with a referral doesn't end after the project is done; you need to nurture them and keep them engaged and loyal. To do this, send a thank-you note or gift and ask for a testimonial or review. Additionally, stay in touch and provide ongoing support or advice, share relevant content or resources that could help them grow or solve their problems, invite them to your events, webinars, or podcasts, and ask for referrals from them. This will help you repeat the cycle.
Your referral sources are an important part of your network. Treat them well by sharing relevant content that will help to keep you "top of mind". This will also help you to be seen as a credible resource who will be a valuable asset during the next project.
Referrals are not a guarantee of success and they can also pose risks or challenges. To avoid common pitfalls, you should treat referrals as well as your other clients, qualify them and address their objections, respect their pace and preferences, not overpromise or underdeliver, and thank or reward your referrers. Doing so will help you maintain your reputation and trust and keep your referrers motivated and loyal.