Leverage the Power of Referrals
By: T.J. Tedesco
For: High Volume Printing
Published: July, 2006

The party game “Six Degrees of Kevin Bacon” is a popular demonstration of the power of personal connections. If you aren’t familiar with the game, here’s how it works: Connect any movie actor to Kevin Bacon through the movies in which they’ve appeared with other actors. (Kevin Bacon has appeared in dozens of movies with hundreds of actors, both famous and obscure, which makes him an ideal “connector” to almost any other actor).

Soliciting referrals to generate new business works on a similar principle: The easiest way to find people who need your services is to ask those who already use your services.  Referrals are the low-hanging fruit that become valuable customers, as they’re essentially pre-qualified prospects who have built-in positive connotations of your company.

Here are a few quick tips to help you and your organization cultivate referrals – and make the most of the ones you receive:

Quick Tips
Put Yourself in Position — If you don’t belong to an organization or industry association, join one. Attend industry-related meetings regularly, as the networking opportunities are an effective breeding ground for referrals.

Build on Happy Customer Experiences – It sounds simplistic, but the best way to get a referral is to ask for one. Make it an organizational goal to contact every customer within a week of the delivery of their project. Satisfied customers will often be more than happy to supply a referral.

Play by Your Referrer’s Rules — If you receive a referral, be sure to ask the referring person or company how they wish the introduction to be made. A customer may want to make the introduction in person or place other conditions on the referral. If so, be patient and don’t press for information; treat the referral as you would any other valuable sales opportunity.

Show Your Thanks — Show that you appreciate referrals by sending handwritten thank-you notes to customers and industry friends who have referred your business. This should be done even if the referral doesn’t lead to new work; the personal touch and token of appreciation will more than pay for itself in the long run.

Turn Dumb Luck into New Business
Let’s shift gears a bit and discuss a different way to win new business – through “dumb luck”. If you’ve ever found a new customer while taking your kids to a ballgame or standing in line at the airport, you likely attributed your success to being in the right place at the right time. In reality, such dumb luck isn’t dumb at all. Capitalizing on chance encounters is smart selling. Here are a few tips to help you convert dumb luck into new business:

Create opportunities tactfully - It isn't news that social events are a great opportunity to meet potential customers. A relaxed, pressure-free environment allows for a natural mix of business and pleasure. However, don't turn every youth soccer game into an industry mixer. Steering an informal conversation toward business should be handled with tact if you want a receptive audience.

Be prepared - When you find yourself in an unplanned business discussion, don't blow it by trying to memorize the details of your conversation. Whether the device is a hand-held organizer or a sheet of paper, be prepared to take notes, which you'll put to use later. This is especially important if you've made a promise, such as placing a call by a certain date or sending your prospect additional information.

Two important words: Follow up! - Perhaps the most important aspect of turning chance encounters into new business is appropriate follow-up. Use those notes you jotted down to create a personalized letter that demonstrates that you've listened to your prospect. A contact that keeps promises is one with whom people love to do business.

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T.J. Tedesco is with Grow Sales, Inc, a company specializing in outsourced marketing leadership for the graphic arts industry. He is the author of four books, including Binding, Finishing & Mailing: The Final Word, Win Top of Mind Positioning, and Direct Mail Pal. All are published by GATFPress and are available at Amazon.com. T.J. can be reached at (301) 294-9900 or tj@growsales.com. Grow Sales, Inc.’s website is www.growsales.com.