Super Agent

Ask a Client for a Referral

It is always surprising to hear how few agents have a process for facilitating referrals from existing clients. Here are some statistics that may motivate you:

According to Nielsen Media Research, 92% of respondents trusted referrals from people they knew; and

People are four-times more likely to buy when referred from a friend.

According to Texas Tech, 83% of consumers are willing to refer after a positive experience, yet only 29% actually do.

Why is that? Likely because the salesperson isn’t asking them to! Finally:

According to Wharton School of Business, the lifetime value of a new referral customer is 16% higher, meaning that someone who is referred by a colleague or friend may actually spend more with you as a result of the referral.

So, with all of these great statistics in mind, doesn’t it make sense to work on developing a referral plan? Here are three ways you can incorporate a client referral into your everyday activities:

1. When you close a new account: The best time to ask for a referral is when you’ve just closed a new account. Your prospect, who is now a client, has seen firsthand the value in what you do. Why not ask them if they have any colleagues who would benefit from going through the same approach?

2. When you renew an existing account: What better testimonial than from an existing account? As you complete the renewal process, why not ask your client if they are familiar with some of the members of your prospect list? Share your list of target-clients. By sharing your list, you are taking the work out of making the referral yourself; your prospect doesn’t have to think of someone to introduce you to. They can make an introduction to someone they know, whom you’ve already identified as a great prospect.

3. When you help your client address an issue: Let’s assume you’ve just helped your biggest client with a big issue- why not ask them, “Do you think anyone within your industry may be at the same risk?” Follow that up with, “Do you have any colleagues who you’d like to help avoid this issue? I’d welcome the opportunity to assist them as well.”

These are just three ways you can develop referrals from your clients. Which one will you try today?

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