I Know a Guy: On Referrals

Several of my friends favor a particular dating practice: if they go on a date with someone who is nice, but with whom they don’t click, they try to put that person in touch with another friend of theirs who might be a better match (with everyone’s consent, of course). In one recent case, this ended in two wonderful people falling in love and getting married.

Everyone knows someone they can recommend for something, whether it’s in the context of their personal or professional lives. And members of virtually every industry rely on referrals. In fact, people quite like recommending others (see below). We can speculate as to why that is. I would venture to say it has something to do with the fact that the idea of a human network predates industry and is, in fact, necessary to our health. For more on that, read the fantastic book Together, by Vivek Murthy, who also happens to be our country’s surgeon general—just in case his other credentials don’t serve to impress you.

I’d also venture to guess that you can think of a few instances when you were enthusiastic about referring someone you worked with in the past to someone who might be a good match for their services or insights in the future. Finally, I’d venture to guess that you feel nervous when you’re in the position of asking someone to refer you. Where’s the disconnect?

BUCKLE UP

Allow me to bombard you with a litany of (actually very useful) statistics that can help you see things differently.

• After a positive experience, 83% of consumers are willing to provide a referral, and yet…
• Only 29% actually do because only 11% of employees ask for a referral. [Texas Tech University]
• A referred customer will spend 13.2% more than a non-referred customer. [SaaSquatch]
• 84% of buyers kick off their buying process with a referral. [Harvard Business Review]
• Companies with formalized referral programs have experienced 86% revenue growth over the past two years compared to 75% growth at companies without programs. [Influitive]
• Every referring customer sends an average of 2.68 invitations. [SaaSquatch]

SO WHAT?

We can glean a few things from these figures:

1. There is a good chance you are passing up opportunities—easy and happily proffered opportunities—to get referrals from happy customers.
2. People looking for service providers like referrals.
3. Referrals determine not only who decision-makers approach for contracting/hiring, but also, whether consciously or subconsciously, how much they spend on these engagements.

When learning about referrals, don’t limit yourself to your field alone. This guide, for example, comes from the American Psychological Association, but contains some universally helpful nuggets. HubSpot also has a useful manual on how to obtain more high-quality referrals.

SOME TIPS

Once a deal has been implemented and any expansion opportunities to start new deals have been explored/completed, ask for a referral. Maestro also recommends writing up an email draft whose text your referrer could use to send out, so that you save them the extra step. It’s up to them whether they use it or not, but this way, you’ve given them the option. You’ve made it easier. By doing so, you may have gotten upgraded to a higher position on their to-do list.

Here’s what you might say on a call:

“It would really mean a lot to me if you would be willing to recommend us. Who in your network would also benefit from working with {{me/us/Your Company Name}}?”

If they agree, say, “Thanks so much for being willing to do that. What is their email?”

If they provide an email address, say, “I will connect with them. I will also cc you on the first email.”

If they don’t provide an email address, say, “To make it easy on you, I will send you an email that you can either edit or just forward to {{First Name of Person Referred}}.”

According to Score, verbal referrals yield the best conversion rates. In some situations, however, you may choose to (or need to) convey your request in writing, such as via email or LinkedIn. Here’s an example:  

Subject:  Who Else Could Benefit From Working With {{Your Company Name}}?

Hi {{First Name}},

{{Personal Connection}}.

We are always looking to grow as a company. Who in your network would also benefit from {{What They Found Valuable}} by working with {{Your Company Name}}?

Thanks,
{{Your Name}}

For some additional free templates, visit HubSpot.

Remember, word of mouth and referrals are a free and effective way of expanding your client base. Don’t pass up that opportunity!

Who in your network would benefit from working with Maestro Group? Send us referrals any time at mastery@maestrogroup.co.