Four Reasons Customers Give Referrals

Imagine this scenario. You pick up the phone to call a prospective customer. You dial the number and wait as the phone rings. When they pick up on the other end, you identify yourself and the company you are with. Instead of a string of objections you hear, "I've been waiting for you to call. When can we meet?"

That's a common occurrence when you are calling a prospect who has been referred to you by a previous client. When you are calling referrals the many layers of resistance and stalling have already been stripped away because you have a connection with the prospect - you know someone they trust.

One way to increase the number of referrals you get is to understand why your clients want to give you referrals. If you keep these reasons in auto insurance specialists you'll find that you can get more referrals and build your business faster and easier.

1. People like helping other people

We all have a natural instinct to help others. It makes us feel good and connects us with the people around us. Think about the time and money people donate to non-profit charities - this demonstrates that people like to give help to others. You might not be a non-profit organization, but you can let your clients know that giving referrals is a way they can help you out. Don't be afraid to share the fact that referrals are a big help to you as you go about your business life.

2. The client likes the salesperson

If someone has purchased a product or service from you, there's a pretty good chance they like you as an individual. It's very rare that we buy from people we don't like. These positive feelings further support the above idea that people enjoy helping others; we get positive feelings out of helping people in general, but especially out of people that we like. Remember that the personal relationship you have with your clients is a big part of why they will give you referrals.

3. The customer like the products

Most salespeople mistakenly think that this is the main reason that people give referrals. It is important, but as we've already seen, there are other powerful reasons as well. People are most excited about the products and services they invested in right when they choose to buy and right when they receive what they purchased. Use these times of natural excitement to leverage the good feelings the customer has about you - these are the best times to ask for referrals. Also, make sure the customer is happy with their purchase before you ask for prescription drugs if there is a problem, find it and solve it first.

4. The customer is asked for referrals

This is the most important reason people give referrals - you ask for them. Too many salespeople just assume that the customer will volunteer referrals because they are so enamored with the product and the representative. Not true! Don't leave referrals "on the table" because you didn't ask for them. Often it doesn't matter how you ask for referrals, just as long as you do ask for them. Referrals are on the top of your mind, but they aren't on the top of the customer's list of things to think about. Be sure to take the time to ask for referrals.

By keeping these four points in mind, you'll find that you increase the number of referrals you get from your past customers. Learn to look at things from your customer's point of view, and you'll find the referral process simpler. The "hows" are always easier when you understand the "whys".

David J.P. Fisher is a business coach and president of RockStar Consulting, a personal development company dedicated to helping people become RockStars in their professional and personal lives. He can be contacted at dfish@rockstar-consulting.com or at http://rockstar-consulting.com