When was the last time you improved a business relationship by making a referral?
When was the last time you leveraged a business relationship and asked for a referral?
We feel making referrals is vital in a world so reliant on customer reviews and feedback. We further explore the topic in this month’s Navigator.
Also, I’m thrilled to report that you can now get free feedback on where your business stands today by using our new Altitude Assessment. A link to this helpful tool is included below — check it out!
Eagle Corporate Advisors
(702) 451-3250
GPS: Sales: Referrals
The value of referrals
Business-to-business referrals are powerful because they are founded in trust. A referral is more than just a great compliment, it is a promise that you are a trusted vendor. It’s the most valuable type of lead: highly effective and cost effective. As an added bonus, the lifetime value of a new referral customer is 16% higher than the average customer, according to Wharton School of Business.
Who are you willing to recommend?
Referring someone puts your credibility on the line. It can be tempting to spontaneously play matchmaker, yet if you do not fully know the needs or capability of both parties, you might be better off giving the referral further consideration.
Likewise, if you are recommended by one of your contacts, be sure to come through, deliver exemplary service and personally making sure the referred party is happy with the results.
How does timing play into requesting a referral?
Ask a client for a referral following a win. If they pay you a big compliment or thank-you for going above and beyond, it is prime time to ask them for referral.
What should I take into consideration when asking for a referral?
Consider how the other party may benefit from supporting your request. How might you return the favor?
Provide a good reason for contacting the prospective referring party. For example, if you learn they gave your business a great review, you could reach out to show appreciation and ask how you can support their needs. If possible, mention how both parties may benefit.
The value of referrals
Business-to-business referrals are powerful because they are founded in trust. A referral is more than just a great compliment, it is a promise that you are a trusted vendor. It’s the most valuable type of lead: highly effective and cost effective. As an added bonus, the lifetime value of a new referral customer is 16% higher than the average customer, according to Wharton School of Business.
Who are you willing to recommend?
Referring someone puts your credibility on the line. It can be tempting to spontaneously play matchmaker, yet if you do not fully know the needs or capability of both parties, you might be better off giving the referral further consideration.
Likewise, if you are recommended by one of your contacts, be sure to come through, deliver exemplary service and personally making sure the referred party is happy with the results.
How does timing play into requesting a referral?
Ask a client for a referral following a win. If they pay you a big compliment or thank-you for going above and beyond, it is prime time to ask them for referral.
What should I take into consideration when asking for a referral?
Consider how the other party may benefit from supporting your request. How might you return the favor?
Provide a good reason for contacting the prospective referring party. For example, if you learn they gave your business a great review, you could reach out to show appreciation and ask how you can support their needs. If possible, mention how both parties may benefit.
Have you heard about our new Altitude Assessment? In just 10 minutes you can complete a free, confidential evaluation showing where your business stands today.
Once completed, you will receive a high-level analysis and practical insight on the progress of your company.
Q: What is an appropriate thank-you to a referral source?
A: Ideally, you’re able to return the favor by sending a new client in their direction. The nicest way to do this is setting up a direct connection by taking them both to lunch and introducing them directly while you all enjoy time together.
When an alternate approach is a better fit, you may need to learn the norms and the regulations for their industry. If a finder’s fee is appropriate, it will certainly be welcomed. Other options to consider include:
- Extend a discount on an invoice or on future work
- Send a handwritten thank-you note
- Give a thoughtfully chosen gift card
- Treat them to lunch
- Make a charitable donation in their name
––Brian Mohler, Eagle Corporate Advisors
Eagle Corporate Advisors works with business owners like you, ready to overcome obstacles and create your path to success. Throughout the journey, we work together to create value across your organization and unify your team toward sustainable results.
We do this first by listening and gaining a thorough understanding of the current state of the enterprise, along with the vision for the future. We leverage our experience and proven process to create achievable steps and timeframes. The optimal path is achieved through candid conversations as we make the journey together, giving you the freedom to choose the path that’s best for you.