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You're struggling to close sales deals. How can you build a referral network that helps you succeed?

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If you're a salesperson, you know how hard it can be to close deals in a competitive market. You may have a great product or service, but if you can't get in front of the right decision-makers, you'll miss out on opportunities. That's why building a referral network is crucial for your success. A referral network is a group of people who can introduce you to potential customers, endorse your value proposition, and help you overcome objections. In this article, you'll learn how to build a referral network that helps you close more sales deals.

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1 Identify your ideal customer

Before you start asking for referrals, you need to know who your ideal customer is. Your ideal customer is someone who has a specific problem that your product or service can solve, has the budget and authority to buy from you, and is ready to make a decision. You can use criteria such as industry, size, location, role, and pain points to define your ideal customer. This will help you narrow down your target market and focus your referral efforts on the most qualified prospects.

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Isaac Urbano Hernandez

Gerente de operaciones | Maestrante en Dirección Comercial
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Es complicado tejer una red de buenos clientes que nos sirvan de referencia en el éxito de nuestras operaciones, pienso que siempre exceder las expectativas con tus clientes incluso los que no llegan a serlo, te abre una brecha de recomendación, un servicio postventa de relaciones publicas es vital, en ese punto la alta dirección debe tener en cuenta que se deberán efectuar dispendios para cubrir estos servicios de mantenimiento de cartera, no hay nada mejor para un cliente que él perciba que se le cuida incluso cuando en ese momento no sea cliente activo, en la primera oportunidad no dudara en usar nuestro servicio o recomendarnos.

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2 Ask for referrals from existing customers

One of the best sources of referrals is your existing customers. They already know and trust you, and they have experienced the benefits of your product or service. To ask for referrals from your customers, you need to follow a few steps. First, make sure you have delivered value and satisfaction to your customers. Second, identify which customers are most likely to refer you, based on their loyalty, satisfaction, and network. Third, ask them for referrals at the right time, such as after a positive feedback, a renewal, or a referral request. Fourth, make it easy for them to refer you, by providing them with clear instructions, a referral link, or a testimonial template. Fifth, reward them for their referrals, by thanking them, giving them incentives, or offering them additional value.

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David P.

Senior Sales Specialist at NCR Atleos
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Some of the best sales opportunities come from referrals. When your current customer recommends you to a prospect you come with creditability and an endorsement. That referral and the implied endorsement can help increase your sales velocity. Leverage referrals as a way to crush your number.

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3 Leverage your professional network

Another source of referrals is your professional network. This includes your colleagues, former employers, industry peers, mentors, and other contacts who can vouch for your credibility and expertise. To leverage your professional network for referrals, you need to do a few things. First, maintain and nurture your relationships with your network, by staying in touch, sharing valuable content, and offering help. Second, segment your network by relevance, influence, and trust, and prioritize the ones who can connect you with your ideal customers. Third, ask them for referrals in a personalized and respectful way, by explaining your value proposition, your ideal customer profile, and how they can help you. Fourth, follow up with them and keep them updated on the status of their referrals. Fifth, show your appreciation and reciprocate their referrals, by thanking them, giving them feedback, or referring them to others.

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4 Join relevant communities

A third source of referrals is relevant communities. These are groups of people who share a common interest, goal, or challenge related to your industry, niche, or solution. You can find relevant communities online, such as forums, social media groups, or blogs, or offline, such as events, associations, or clubs. To join relevant communities for referrals, you need to do a few things. First, research and select the communities that match your ideal customer profile, your value proposition, and your goals. Second, participate and contribute to the communities, by engaging in discussions, providing insights, and solving problems. Third, build trust and authority in the communities, by showing your expertise, sharing your success stories, and providing value. Fourth, identify and reach out to potential referrers in the communities, by asking for advice, feedback, or introductions. Fifth, follow the community rules and etiquette, by respecting the members, avoiding spam, and adding value.

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5 Track and measure your referrals

The last step to building a referral network is to track and measure your referrals. This will help you evaluate the effectiveness of your referral strategy, identify the best sources of referrals, and optimize your referral process. To track and measure your referrals, you need to do a few things. First, create a referral system that captures and organizes your referrals, such as a CRM, a spreadsheet, or a software tool. Second, set and monitor your referral goals and metrics, such as the number of referrals, the conversion rate, the revenue, and the ROI. Third, analyze and report your referral data, by using charts, graphs, or dashboards. Fourth, test and improve your referral tactics, by experimenting with different sources, methods, and incentives. Fifth, celebrate and share your referral wins, by acknowledging your referrers, rewarding your team, and showcasing your results.

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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?

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Summer Poletti (rhymes with spaghetti)

Growth-Stage Leaders Drive Predictable Revenue by Unifying Teams ? Increase Efficiency, Boost Retention, Scale Profitability ? Fractional CRO
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All of these are great! If you want a very successful partner program, I suggest you get strategic about it. Write out a strategy with goals, figure out the tactics necessary to reach those goals, assign someone to own it, and execute it. And hold that person accountable for delivering results. Make sure you have diversified partner lead strategies, diversified partners, partner redundancy, and that you clearly outline your expectations to each partner. This, coupled with everything above, can give you a partner program that delivers sales with a shorter sales cycle, higher close ratio, and bigger ticket price.

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Ryan Miller

Helping Leaders Optimize Sales Systems & Build Resilient, High-Performing Teams as a Faith-Fueled Business Strategist, Coach, and Speaker
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Leverage existing relationships and stay in constant communication. Reach out to satisfied clients, friends, and family who are already familiar with your work. Ask if they know anyone who could benefit from your services, and be clear as to emphasize the value you could bring. To keep these connections strong and active, regularly communicate with them. This could be through newsletters, emails, or social media updates, sharing useful content, education, and updates about your business or industry. This ensures you remain at the forefront of their minds, making them more likely to think of you when referral opportunities arise.

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You're struggling to close sales deals. How can you build a referral network that helps you succeed?

1

2

3

4

5

6

1 Identify your ideal customer

2 Ask for referrals from existing customers

3 Leverage your professional network

4 Join relevant communities

5 Track and measure your referrals

6 Here’s what else to consider

Sales

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You're struggling to close sales deals. How can you build a referral network that helps you succeed?

1

2

3

4

5

6

1 Identify your ideal customer

2 Ask for referrals from existing customers

3 Leverage your professional network

4 Join relevant communities

5 Track and measure your referrals

6 Here’s what else to consider

Sales

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