Referral selling creates exponential growth where one client will multiply to two and two to four and four to eight and that goes on! It is your satisfied and happy clients that refer you and many a times without even you asking them. These new referrals start as appointments and the client-courtship process begins. Keeping them engaged, endeavouring to win them and closing a deal for them leads to yet another referral and this is how referral selling circle keeps going on. Does this not sound familiar, easy and simple? Referral selling beats out more or less every other lead generation technique and let’s sees the benefits of working from referrals:
Try evaluating the cost per lead through other lead generation methods. Referrals cost no money to get hold of. The only cost that may incur is a small token of thanks but other than that a lead coming out of a referral source costs you nothing.
Needless to say, there is a higher level of trust from the beginning. When you meet up a new prospect for the very first time, you need to develop a rapport and create a trust factor. Is there any better way to show up one’s trust than through a prologue from somebody the prospect already trusts? Referrals are definitely like borrowed trust and works like magic.
Clients who come referred for you look for better services. Your brokerage or consultation fee is generally not an issue at all. Chances of pricing objection go nil when you’ve been suggested by someone they trust.
Firstly the requirement is hot and more genuine than it is from any other source. You are sure of investing your time to referrals. Most sales processes that start with a referral move through the course more speedily. These are the ones who come to you with their inclination of doing business with you. Sales come faster also because you start at a higher level of trust.
Your “closing ratio” will be much higher working with referrals than working with clients who come out of other sources. If the closing ratio from other sources is between 10 and 30 percent; referral based selling usually has a better ratio ranging from 50 to 70 percent and at times even higher than that.
Once you have added value to your referral client, you will obtain a referral. Since you are referred, your opinion and suggestion is also trusted and an excellent experience given will gain. In view of the fact that referrals beget referrals, many clients will give you numerous referrals over time, and your business growth will be exponential.
This is the most exciting way to do business! You can create a “referral way of working” wherein the prospects you approach want to hear from you, want to set appointment with you, trust you more from the beginning and are keen to do business with you!
Grow your business exponentially as there are more benefits than just listed above of doing business the referral way.