The Easiest, Fastest Way To Build a Pipeline
My recent post about preferring personal attention to buying on the Internet produced the following question from a Sales Machine reader:
I'm an insurance agent who looks out for my clients, many of whom are also friends. How do you recommend that I market my services? Claiming to give "terrific service" doesn't work because all of my competitors say the same thing. How can someone who provides a very personalized, consultative, labor-intensive service, market himself in a way that separates him from the hundreds of other insurance professionals who claim to give great service and great rates, but barely deliver?The short answer is "through referrals." The long answer involves turning your referral process from a haphazard activity into one that consistently creates repeat business.
Please note that a referral is NOT a "reference." A reference is a former or current customer who will vouch for your integrity when contacted towards the end of the sales cycle.
A referral is when person "A" (your current customer) connects you with person "B" (a potential customer), in the hope that both will benefit. "A" wants to help "B" and believes that "B" would benefit from working with you.
In most sales training courses, they tell you to ask for a referral after you close the deal. That's a HUGE mistake. The time to ask for a referral is after you've PROVEN that you can deliver "terrific service" as you put it.
So, if you're already providing such service to some customers, now;s time to ask them for some referrals. Joanne Black, author of the bestseller No More Cold Calling suggests that you follow a simple, five-step process:
- Position the meeting. Tell your current customer that you are building up your client base and would like their help. Make it perfectly clear that this is NOT a sales call.
- Confirm that you've delivered. Remind your customer of the positive impact you've had, and confirm that they're delighted.
- Describe your ideal client. Describe the type of person who typically needs your services. Then ask whom your customer knows who fits that description.
- Ask for the referral. Ask your current to make the introduction, either by phone, in person or by e-mail. This is important! You are not asking for a reference but an active referral.
- Follow-up religiously. Make sure you provide a thank you/reminder. And keep your customer posted on your progress. That way they have the good feeling of knowing they helped out.
Needless to say, this is harder to do if you're starting in a new territory and doesn't really work at all if you're starting from scratch. However, there's no better way to build up a client base than referrals.
You just have to make it a habit.
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