Referrals are one of the most effective ways to generate new leads and customers for your business. But how do you ask for referrals virtually, when you can't meet your clients face-to-face or rely on word-of-mouth? In this article, you'll learn some tips and best practices to request and receive referrals online, without sounding pushy or desperate.
Before you ask for referrals, you need to make sure that your clients are happy and satisfied with your products or services. You can do this by following up regularly, providing value-added content, asking for feedback, and solving any issues or concerns. You also need to build rapport and trust with your clients, by showing genuine interest, appreciation, and empathy. By setting the stage, you'll create a positive and lasting impression that will make your clients more likely to refer you to others.
Vice President of Client Management ; CPhT, RPhT at Precision LTC Pharmacy
Asking for referrals is a relationship-building exercise, so always approach it with authenticity and respect for your contacts' time. By providing value and demonstrating that you appreciate their support, you can increase the likelihood of receiving the valuable referrals you are looking for.
Referred customers typically bring you a 25% higher profit margin, and are 4x more likely to refer you to someone else. Yet only 11% of salespeople ask for referrals. Referrals are the greatest source of revenue, so it’s always worth providing great service to your customers, and asking if you can continue to provide that great service to someone else they know.
When asking for referrals virtually, start by expressing appreciation for the existing relationship. Briefly explain your business and its value. Politely and directly ask for referrals, specifying the type of clients or contacts needed. Consider offering incentives like discounts or rewards. Make the referral process easy with shareable links or templates. Follow up promptly, express gratitude for received referrals, and continue nurturing the relationship. Leverage social media and virtual events to expand your reach. Be genuine, respectful, and focused on building trust to ensure successful virtual referrals.
What i have found to be of massive help in me getting referrals, has been to make sure the interaction with the current prospect is personal to them as much as possible. This is no easy feat since you do not know the person nor them you. How i make it happen is through open ended question based off the first sense of instinct on that particular individual's way of thinking, an assumption that i at least can tell that you are this type of a person. What's nice about this minute assumptions of one's character is that it allows me to speak confidently after i have allowed you to go on speaking about youtself and your underlying expectation based on the interaction. I actively listen and make sure that you are feeling like you are heard.
The next step is to choose the right timing to ask for referrals. You don't want to ask too soon or too late, as that might seem inappropriate or irrelevant. A good time to ask for referrals is when your clients have experienced a positive outcome or benefit from your products or services, such as achieving a goal, saving money, or solving a problem. You can also ask for referrals after receiving a compliment, a testimonial, or a referral from another source. The key is to capitalize on the moments when your clients are most satisfied and grateful.
choosing the right timing for asking virtual referrals is crucial. It is best to approach the request with sensitivity and respect for the other person's schedule and priorities. Select a moment when the person is likely to be relaxed and receptive, avoiding busy or inconvenient times. Prioritize building a genuine connection and rapport before seeking referrals, as this approach is more likely to be well-received and yield positive results.
A great rule of thumb for referrals is to deposit significantly before the withdrawal. Once a customer is happy, and you’ve gone above and beyond for them, that’s when it’s a great time to ask for a referral. Deposit tremendously first, then withdraw.
The third step is to use the right channel to ask for referrals. Depending on your relationship with your clients, you can use different methods to reach out to them, such as email, phone, video call, or social media. The best channel is the one that your clients prefer and respond to, and that allows you to communicate clearly and effectively. You can also use a combination of channels, such as sending an email first and then following up with a phone call, to increase your chances of getting a response.
Vice President of Client Management ; CPhT, RPhT at Precision LTC Pharmacy
Regardless of the channel you use, personalize your referral request. Address your clients by their names and acknowledge any previous interactions or personal details you know about them. A personalized approach makes them feel valued and more likely to respond positively.
There are so many ways to connect with people, but I’ve often found that a handwritten card goes miles. In our technology-driven world, there’s just something about receiving a card in the mail. It makes someone feel special, and that they were worth taking the time for.
The fourth step is to be specific and clear about what kind of referrals you're looking for. You don't want to ask for generic or vague referrals, such as "Do you know anyone who might be interested in our products?" Instead, you want to ask for targeted and qualified referrals, such as "Do you know any other managers in your industry who are struggling with X problem and could benefit from our solution?" By being specific and clear, you'll make it easier for your clients to think of potential referrals, and you'll also show them that you understand their needs and challenges.
Vice President of Client Management ; CPhT, RPhT at Precision LTC Pharmacy
When seeking targeted and qualified referrals, consider providing your clients with some key points or specific reasons why your product or service is valuable. By arming them with this information, they can better advocate for your offerings when recommending you to their contacts. Highlight the unique benefits, features, or success stories that make you stand out in the industry. This not only reinforces your expertise but also instills confidence in your clients when discussing your business with potential referrals.
The more specific you can be with asking for referrals, the better odds you will get them. If you mention the pain points you helped your prospect solve as you’re asking for a referral, they will feel seen, and more likely to refer you to someone they know. It’s all about providing solutions in every area, continually.
The fifth step is to provide incentives and value to your clients for giving you referrals. You don't have to offer monetary rewards or discounts, although they can be effective in some cases. You can also offer non-monetary incentives, such as free consultations, extra features, exclusive access, or recognition. The most important thing is to show your clients that you appreciate their referrals and that you're willing to reciprocate the favor. You can also provide value to your clients by sharing useful content, insights, or tips that can help them with their goals or problems.
The final step is to follow up and thank your clients for their referrals. You don't want to leave your clients hanging or wondering what happened with their referrals. You want to keep them updated on the status and outcome of their referrals, and let them know how much you appreciate their help. You can also ask for feedback or suggestions on how to improve your referral process or offer. By following up and thanking your clients, you'll strengthen your relationship with them, and encourage them to give you more referrals in the future.
The best clients are those who we build longterm relationships with. When a customer provides a valuable referral or review, be sure to let them know that it meant something special to you. Someone who writes a referral of any sort has gone out of their way to express that what you provided them with has influences them in a way that they feel enthusiastic enough to provide referral to begin with. Someone expressing gratitude who is treated well will often become part of your brand’s growth journey if you foster that relationship. Your best customers tend to bring in others like them, so build incredible relationships and everything else tends to grow from there!
Referral Management should be managed as a process, not as an ad hoc task that individual sales representatives handle haphazardly. It should be managed with the same rigor as the sales process itself, in such a way that staging, timing, channels, targets, incentives, and follow-ups can be handled in the most appropriate manner, and can be measured quantitatively for benchmarking and continuous improvement.
Fuel business growth with referrals. Promote them through an effortless virtual system. Reward referrers with exclusive access to expert webinars, or special insights. For spontaneous referrers, offer high-value, personalized gifts. Since they're likely your best customers, set rewards higher than your regular acquisition cost, incentivizing quality referrals. Regularly optimize your strategy based on data. Employ technology to simplify tracking and rewarding, thus nurturing a loyal, engaged customer base.