Referrals are one of the most effective ways to generate leads and sales for your business. But not every referral is ready to buy or commit right away. Some may need more time, information, or trust before they make a decision. How do you track and follow up with these referrals without losing them or annoying them? Here are some tips to help you.
A CRM (customer relationship management) system is a tool that helps you organize and manage your contacts, leads, and customers. It allows you to store and update information about each referral, such as their name, email, phone number, source, stage, interests, preferences, and interactions. You can also set reminders, tasks, notes, and goals for each referral. A CRM system helps you keep track of your referrals and follow up with them in a timely and personalized way.
Recently my partner and I began using follow-up boss. Since our partnership began we have used our own system, which was less than perfect. We needed a real CRM. Brokers have CRM’s, however that does not guarantee the safety of the agent’s contact information. Our contacts are our business and should remain only part of our business.
I use CRM for my business. It has been extremely helpful, allowing me to set follow-up dates, record notes and check clients' status. I also use it as a search engine to identify properties that are interesting to my clients and are sent directly to their email addresses. As for security, I checked the parameters on my CRM and found it secure enough to continue using it.
Your CRM should not only track referrals, it should make it easy to follow-up at an appropriate interval. Of course it's great when people want to buy right away, but plenty of people need some time. Fortune is in the follow-up, especially when so many people don't...
Have that initial conversation with the referral. If they aren't ready to commit, ask if it is ok to keep in touch from time to time and set them up for future calls, or in my case as a recruiter, once I have a conversation with a referral, and I get something in that may be appealing for that referral, I'll call him back and share the opportunity and see if he is interested in making a career change this time... sometimes it takes years before they are ready, but I don't ever give up... and usually these referrals are making additional referrals in the mean time! so its a win-win! woot woot!
Not all referrals are equal, so it's important to segment them based on their characteristics and behaviors in order to tailor your follow-up strategy. For example, you can consider their source—did they come from a friend, a colleague, a partner, or a social media post? You can also assess their stage in the buying process—are they aware, interested, considering, or deciding? Additionally, you should consider their interest—what are they looking for and what are their pain points, goals, and challenges? Finally, you can determine their communication preference—do they prefer email, phone, text, or video? Segmenting your referrals in this way will help you create an effective follow-up strategy.
Segment referrals for tailored follow-up: 1?? Purchase intent: Identify if they’re actively seeking a solution or researching options. 2?? Company size: Consider their organization’s scale to provide suitable solutions. 3?? Geographical location: Customize your approach based on their specific region or area. 4?? Product preferences: Determine their specific interests or preferences within your offerings. 5?? Referral history: Analyze their past referrals to identify their propensity to refer others. 6?? Industry challenges: Address industry-specific pain points or challenges they may face. By leveraging these segmentation factors, you can refine your follow-up strategy, enhance personalization, and boost conversion rates.
I agree with Alicia's assessment, however, I believe that we should consider the type of business we are transacting and respond accordingly. I am in real estate, and my clients are home buyers and sellers. If I were in a different business, then I would have to modify my approach and cater to the clients' needs. One important point is that there are 4 types of personalities and it is incumbent on us to "read" their actions and apply our response to their specific personalities. One of my mentors and personality advisor gave me the following 4: S = Social T = Task I = Ideas R = Reesults.
Nurturing your referrals is essential in order to provide them with value, education, and engagement until they are ready to buy or commit. You can nurture your referrals by sending them relevant and helpful content such as blog posts, ebooks, case studies, and testimonials. Additionally, invite them to events, webinars, workshops, or demos that showcase your expertise and solutions. Furthermore, asking them questions for feedback or opinions can demonstrate that you care and listen to them. Finally, offering incentives, discounts, or bonuses can motivate them to take action.
To nurture your referrals effectively, consider these innovative strategies: 1?? Personalized Video Messages: This human touch creates a stronger connection and leaves a lasting impression. 2?? Community Involvement: Encourage referrals to participate in exclusive online communities or forums where they can engage with other customers, share experiences, and access additional resources. 3?? Gamification: Gamify the referral experience by introducing challenges, points systems, or leaderboards. 4?? Thought Leadership Content: Share industry trends, thought-provoking articles, or expert interviews that position your brand as a valuable source of knowledge. 5?? Surprise Gifts: Offer unexpected personalized gifts or exclusive deals.
Tracking your results is a key part of measuring and analyzing the effectiveness of your referral tracking and follow-up strategy. To do this, you should set and monitor key performance indicators (KPIs) such as referral conversion rate, retention rate, and lifetime value. Additionally, testing and optimizing different variables like follow-up frequency, content type, message tone, and call to action can help you get better results. Asking for referrals from your existing referrals is also a great way to show satisfaction and loyalty. Ultimately, using a CRM system, segmenting your referrals, and nurturing them can increase the chances of turning referrals into customers and advocates.
Use a CRM system to organize and manage referrals, set reminders, and personalize follow-ups. Segment referrals based on source, stage, interest, and communication preference to tailor your strategy. Nurture referrals with personalized video messages, exclusive communities, and gamification to build trust and engagement. Track conversion rates to measure success and make iterations like offering better rewards or using referral software. Identify top referrers and reward them, while engaging less active ones to motivate more sharing.