Asking clients for referrals

I've launched a new page on Facebook for people to share links, videos, blogs and ideas on networking and referral strategy. You can find the page at www.facebook.com/networkingstrategy.

One of the features of the new page is a Discussion section, where I have invited members to post questions and tips on networking and referrals.

At the weekend, Nikki Pilkington asked the following question:

Andy, in all the time I've known you, you've taught me that referral networking works - and it's true. But how would I go about asking current clients to pass me referrals without making them feel obliged or hassled? Thanks in advance for any insight.

Hi Nikki

Two bits of simple advice to get you started:

- Don't treat everyone as equal
- Keep it simple, make it easy.

1 - Don't treat everyone as equal

Many businesses institute 'get a referral' schemes targetting their clients as a general body, perhaps by offering an incentive if they refer, or asking for help 'if you are happy with what we do'.

Such impersonal schemes are easy to duck. If you're not asked directly and personally, it's not difficult to press 'delete', and very tempting when you are busy!

In other cases, businesses will ask clients individually, but use a general approach. The most frequent example of this is the set of questions at the end of every meeting. You know the form:

"Are you happy with what we did?"
"Do you know any one else who would benefit from this?"
"Can you give us their names?"

At best this approach provides a list to cold call, but can often make the client uncomfortable. After all, you have been there to help them, not the other way around.

Instead of these general approaches, think of each client individually. Ask yourself how much they would WANT to refer you (in other words, how well do they like and trust you?) and how well they understand HOW to refer you.

Focus first on improving these two areas where necessary. There's no point just asking for referrals from people who don't feel comfortable or able to do so.

When you have done that, you have two more questions to ask yourself. The first one is to ask who they know, which I'll come onto in a moment. The second is what can you do to inspire them?

There are a whole range of answers to the second question, running from simply asking to referring them and, in certain cases, financial incentives. The key is that the response is personal to each potential Champion, not a 'catch all' approach that catches none.

2 - Keep it simple, make it easy

The easier you make it for someone to refer you, the more likely it is that they will. A general request often produces nothing. If I asked you for an introduction to everyone you know who has a telephone, how much work would be involved for you helping me? Too much to justify you doing it!

A specific request that is tailored to that person's network is the best approach, hence 'who do they know?'. Be very clear about who you want to speak to and why and it will be much easier for them to make the connection.

The more personal your approach, and the more focused your requests, the more success you'll see.

I hope this helps.

Making more Dough through referrals

During my talk to the Academy for Chief Executives Conference last week I talked about the importance of substantially exceeding clients' expectations if you want them to refer you.

Here's the problem. Most businesses recognise that referrals or recommendations represent their best source of new business. However, few do anything proactive about it. We employ cold calling teams, spend fortunes on pay per click and search engine optimisation, develop marketing strategies and invest in advertising campaigns. Yet we just expect referrals from our clients automatically.

There's nothing wrong with the marketing techniques above, they are all part of the marketing mix. Surely though, there's something wrong when the least resource goes into the most effective marketing channel.

This becomes a major issue when you realise that your customers don't refer you automatically, just because you give them good service. People don't work like that.

Look at the front page of the newspapers on most days and what you'll see is bad news. Bad news travels much more quickly than good, mainly because it gives us a story. Have a good meal in a restaurant and you might compliment the chef, have a lousy one and you'll tell all of your friends.

People will only relate good news if it's exceptional. In other words, if you give them a story.

The Conference last week was held at Warren House in Surrey. On the evening before the Conference Academy CEO Mike Burnage arrived with a guest. They sat in the lounge and asked the waiter for some Scones.

The waiter started to tell Mike that there were no scones available that day but stopped himself. "One moment please sir", he said and disappeared into the kitchen. A few minutes later he came out and said "Chef is making some fresh scones for you now". Twenty minutes later he re-emerged with piping hot freshly made scones.

How do I know this? Because Mike told me.....he had a story where Warren House substantially exceeded his expectations. How often would you expect a hotel that has no scones to make some for you there and then?

Not only did Mike tell me, I then relayed the same story to fellow diners that night, and again I told the audience from the stage the next day.

Give your customers a positive story to tell their friends, colleagues and family if you want referrals. Under promise and over deliver.

Above all, if you want to be referred, substantially exceed their expectations.

Tweeting for new business...?

First of all, please allow me to wish you a belated Happy New Year. I may have been quiet on the blog through the first couple of weeks of the year but I certainly haven't been hibernating. I've been working on a number of exciting projects throughout the Christmas period and all will be revealed over the coming weeks.

Let's start the year as we mean to go on....with a question.

If you are a member of social and online business networks, such as Facebook, Ecademy and LinkedIn, how often do you update your status?

Introduced following the early success of Twitter, status updates can be used in a number of ways. Ridiculed initially as people told us the minutiae of their lives, from when they were going to get a cup of tea, to nipping to the loo or reading a magazine (or even all three together!), they now offer a great opportunity to gain deeper insight into what our network does.

Understanding what other people do is one of the challenges of effective networking. A title or elevator pitch can rarely do it justice. However, 'Tweeting' your latest actions, or updating your status with details of the clients you are working with and what you are doing for them can play a key role in educating your network.

Similarly, personal updates, from the films you are watching to the sports you follow help people get to know the individual better. And we all know how important it is to remember that 'people buy people'.

Above all of this, you can post requests on these updates. Sometimes, those requests, or your updates can lead directly to new business. It is the most simple and effective form of marketing possible.

This morning I received an email from Theresa Summers, inviting me to connect to her on LinkedIn. I first met Theresa about three years ago when she was the guest at a BRE meeting that I was visiting. She showed that she really understood networking, wanted to learn more and was incredibly enthusiastic. We have remained in touch ever since, although we have met rarely and her business has changed since I last saw her.



Connecting with Theresa, I noticed the status on her LinkedIn profile. It said, "Theresa Summers is looking to connect with people who could utilise moving classroom training to e-learning" and had been posted just 45 minutes earlier.

E-learning is an area I am very interested in and wanted to explore later this year. I looked on another social network, Facebook, where Theresa and I are connected, and saw she was online. Within a few minutes we have agreed to meet and discuss how we can work together to accelerate my e-learning programme.

It probably took Theresa less than one minute to write a status update that could hopefully lead to some very profitable business for her.

You won't win business every time you Tweet, or update your status. Some of the time it will fall on deaf ears (or blind eyes). Sometimes you will be building people's knowledge of what you do or who you are.

And sometimes it might lead to a referral, or a direct piece of business.