Better Than Cold Calling?
  by Ann Barr

There is an important marketing method seldom used by sales people and it is the most effective lead generator you can get for absolutely no cost!  What is it?

It is the method used by a man who is listed as the most successful salesperson in the world by the Guiness Book of World Records. His name is Joe Girard.

Joe was a car salesperson who generated extraordinary results.  At one point, Joe was selling 1,425 cars a year.  That's nearly four cars a day!

How did he do it?

Nearly all of his sales were a result of referrals. You could rightfully say that Joe Girard was the most successful referral marketer of all time.

What was Joe's secret? How could one man sell 1,425 cars in one year?

He sent thank-you notes to every person who bought a car from him. AND - he sent a card each year on the one-year anniversary of the purchase.

And he did something important: He asked each customer for a referral.

This referral system resulted in Joe becoming the # 1 car salesperson in the world seven years in a row.

Getting Business to Come to You

Here is an interesting statistic for you:

According to Paul and Sarah Edwards (authors of Getting Business to Come to You), up to 45% of most service businesses are chosen by customers based on the recommendations of others.

The reason referrals are so powerful is because they come from a credible third party that has experienced first hand the benefits of doing business with you.  They are even more powerful when they come from a friend because you know that a friend has no ulterior motivations but to do what's in your best interest.

Five Opportunities

Pay close attention to watch out for these opportunities and if you go the extra mile at the right time, you have a lifetime customer - AND you can ask this customer for a referral.

Opportunity # 1: The moment your customer complains.

If you can fix the problem quickly and to your customer’s satisfaction, s/he will be grateful.

Opportunity # 2: The moment one of your customers has been through a hard time because of a foul up on your (or their) part.

Opportunity # 3: The moment a customer has thanked you.

Opportunity # 4: The moment one of your new customers calls back to place a second order.

Opportunity # 5: The moment a customer needs a favor from you.

QUESTION: How can you get more referrals?

ANSWER: ASK your good customers for them.

How do you ask for referrals - in a way that will be most successful?
     DON'T ASK: "Do you know anyone else who could use our products?"
               (Because this gives the customer the chance to quickly say "no.")

DO ASK: "WHO do you know that could use (or benefit from) our products or
              services?"  Everyone knows someone who could use your products or services.

Don’t Be Afraid to Ask

Most small business owners know that they have to ask for referrals to get more referrals, but it is the fear of asking that stops them from moving forward. This fear of asking is rooted in attitude.  If your attitude is one that believes that you are asking that person to go out on a limb for you by asking them to give you referrals then you will always be battling with fear.

People WANT to Give You Referrals

Your customers want to give you referrals. It makes them feel good that they found a great business that they had a good experience with and they want to share their good experience (you) with their friends.

Remember the last time you saw a good movie or had dinner at a great restaurant?  How many people did you tell about your experience?  And they probably took your advice – saw the movie and had dinner at the restaurant you recommended.

Better Than Cold Calling

Think of the process of cold calling – and how many cold calls it takes to establish rapport with a prospect.  Will the prospect trust you immediately?  No.  But when you call someone who has been referred by a current customer and you can say:  “John Smith at the XYZ company suggested that I call you . . .”  There is an immediate connection and the prospect will be much more willing to talk to you and listen to what you have to say.

A recent Dun and Bradstreet survey found referrals to be one of the two most popular small-business marketing methods (the other one is advertising).

Another Great Reason to Ask

Customers that give referrals become more loyal to you and your business.  Once someone stands up and makes a public statement about you, psychologically they will become more loyal to you and your business.

Who can you think of - right now - that you feel will give you a referral?  I’ll bet you can think of at least three.  So ask!

Ann Barr is a consultant and sales trainer who presents Sales seminars in the U.S. and Canada.  To contact Ann,  e-mail to: annbarr3@cox.net Or visit her web site www.sellingsupplies.com

----------------------------------------------------------------------------------

Ann Barr is a consultant and sales trainer who has written eight books on sales and marketing available on her web site www.sellingsupplies.com