Asking for referrals… or discussing referrals… or approaching others about wanting more referrals….

…does the thought of this make you uncomfortable?

Well, you’re not alone.

For most people interested in growing their referrals of clients and customers, discussing referrals almost feels like begging.

Today, I’ll share with you a concept that I call “L-C-E-P”, that will break down your referrals barrier rather easily.

I stress the importance of making sure people find VALUE in your services before you ever discuss referrals with them. So, presuming you know that others are valuing your work, let’s look at…

Are You Using The Concept of L-C-E-P?

L-C-E-P continues on the theme of value-recognized. It stands for “Low-Cost Experience Points.”

In other words, I want you to start thinking  of ways you can communicate value to others via entry points to your services, and LCEPs (low cost experience points).

One of the simplest ways of doing this, and creating those LCEPs, (as an rough example), is to get your website (or web page) updated – it’s an online brochure, and as important as any hard marketing materials you now own (or plan on creating in 2010.)

How many brochures have you requested from a company recently? Zero probably.

What I’m driving at is for you to showcase your core competencies, including cloaked case studies, and other work illustrations that allow a person to come to experience you and your work.

Also, it still amazes me how many professionals see referral marketing and building referrals from clients as a means of offering forced inducements (bribes, rewards or otherwise) to the client to get new introductions, and new “experiences” with others.

Stop doing this. Referral bribes and rewards are cheap inducements. They are  flawed and foolish.

Instead, hone-in on your Low-Cost Experience Points. Everyone has them in their business.

What are some in your business right now that you can offer to others?

You can absolutely jumpstart your referrals and referral marketing efforts now. In fact, it’s one of the questions I’m getting asked the most, right now.

There’s a 3-step referral marketing approach I want to suggest that you try using. When you do, it’s very powerful in opening up new doors and conversations about introductions and referrals with others.

Let’s start with the three steps.

You could begin with clients, customers, or perhaps a business colleague, for example.

My 3-Steps are as follows – A-L-D:

• Step 1: Ask For Feedback on Yourself.
• Step 2: Listen for Value Statements & Confirm Value-Found.
• Step 3: Discuss/Reframe So Others Can Benefit.

When formally creating your own referral system, notice how step 2 and 3 follow the preceeding step. Study this closely you’ll see it’s a natural progression of conversation.

I suggest you familiarize yourself with this referral marketing approach, especially now, when so many people seem to be looking to others for advice and direction.

Let’s start with Step # 1: Ask For Feedback on Yourself.

(Quick sidebar, click image to hear me explain something related:)

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It truly amazes me how many opportunities we have to ask others for feedback on our skillset in day to day business. But we fail to do it — at least consistently. One way of getting feedback on ourselves is simply to ask the other person (client, customer, colleague):

“John, On a scale of 1 to 10, what score would you give me these past few months? How do I rate? How do you rate my level of advice and service to you?”

Then shut up and listen!

What you will hear will give you crystal clear insight and feedback on yourself. It may also rattle your perception of your product or service-delivered also!

The best way of doing this is conversationally, of course — either in person, or by telephone. Don’t relegate the important grading of yourself and the services you provide to a mailer, or a survey, or an online form people complete (although they can be useful at times.)

You want genuine, honest feedback from people who can refer you currently… or who can be a future referral source to your business.

And you want them to speak this to you… using their MOUTH. No emails. No handwriting.

Sure, it takes cajones to ask that question; but it’s absolutely essential you do it before you ever think about asking the client, customer or collague to help introduce you to other people.

Go get feedback on yourself. And ask for it frequently!

Next time: Step 2: Listen for Value Statements & Confirm Value-Found.

Last time, I was explaining that many people — when seeking to generate referrals — reason to themselves that if they offer a high enough bounty, others will get interested and that will create more referral flow for themselves.

That’s a myth.

In fact, the opposite is quite true: When you offer money to someone to send you referrals, you often never see a single referral from them. Why is this?

Because there is quiet resistance that you never hear about. 

Why?

Because of my first point:

Most people don’t like referring business, or at the very least, don’t really know how to go about looking out for you and advocating for you.

Why is that? 

Because they don’t always know why they should refer business to you. 

And still further… why is that?

Because they don’t know how this will be in their very own best interests. 

Why?

Because, as I just said, they can’t translate ‘Me giving you a referral’ equates to ‘this form of benefit for me, today in my life.’

Let’s not forget that cash inducements are not the sole benefit people are seeking today.

I won’t get into other issues, such as influencing people to refer by offering them money, and how that translates into your image and the perception of your referral marketing practices. But that can be a very real issue also.
 
So what’s the answer to getting more referrals for yourself?

Transparency.
 
As in: Showing the client, colleague or family member why sending referrals recommending you to others truly is in their best interests.

Think of any healthy professional where referrals are the top marketing tool: real estate, legal, insurance, investments…. what do you see?

People, more times than not, sharing with others why speaking to you is in their best interests.

They’ve been able to form an opinion of you based on their experiences, and have objectively (not by bribes or payola) determined that you are trustworthy professional who has earned their trust and counsel.

Ran across the Automatic Referrals blog today (written by Bob David), who posted about networking during the holidays. Great point.

Sure it plays into referral marketing. But as David points out, socializing and building (referral) contacts.

Good reminder, especially now. 

There’s not a lot of (financial) professionals killing it now with their client referral flow, due to the markets.  Few are even discussing referrals with their clients (damage control).

Still…

This is article is a good reminder. I especially like Bob’s point of the “the power connection” and “positioning.”

In other words, it’s a great time to be a matchmaker.

Matchmakers earn introductions and referrals.

Well… put your sales anxieties aside amigo, because there are quiet ways to communicate your desire to build your business through word-of-mouth. And these referral generating ways won’t make you feel like a used car salesperson. (Nothing against used car salespeople, mind you. )

Problem here, is most people don’t do it. Why?

First of all, there’s a few things you need to face — reality being one of them, of course.

Obviously, sales is necessary to keep your business growing and thriving. But it amazes me how many people say, “Well, I’m not in sales…” or “I hate sales…” or “I don’t like to appear salesy…”

What they’re really saying is, I prefer to be more low-key orsoft-sell. They’re saying, of course I want referrals but I don’t want to come across either…

1. Strong-arming someone with a canned sales-spiel about “earning business by referrals…” (or whatever).
2. Appear desperate to a person.

Fine. But next… you need to face the fact that nothing happens without you initiating outward action on your end. And regardless of whether you like it or not, you are in the sales business – Selling yourself. Your skills. Your confidence. Your knowledge.

So Mr. or Ms. Soft-Seller, here are three ways to create such action and generate referrals without feeling like you’re begging:

1. Get referrals by doing an outstanding job.  The foundation of this is to make sure you are the best at what you do and choose a target market and cater to the needs of those people so you become a valuable resource. When you are able to meet every small need of your target market, the word will get out.
2. Get referrals by adding a line about referrals to your office sign, business cards, invoices and stationery.  This is simple. But few people do it consistently. Any of the written material used to communicate silently with your clients should bear the line, “Referrals welcome” or something similar to let the people know they’re welcome to tell others about what you have to offer.
3. Get referrals by staying in touch with your current clients.  Even if you haven’t heard from someone in several months, maintain contact through a call, email or letter.  As you expand your business and offer new services, you can use a newsletter (e-newsletter or old-school) to inform people. Newsletters can be sent by regular mail or email and are a great way to spread the word about what you have because your clients can share them with friends, family and business associates.  Keep copies in your reception area and offer it to new clients during the first interview.