Why Reps Don't Get Good Referrals

Most sales reps are trained to ask for referrals when they make the first sale to a customer, typically with a question like: "Do you know anyone else who can use our products or services?" The logic behind asking for a referral at the point of sale is the belief that once the customer has said "yes" to the sale, they're completely convinced of the value of what they've bought and therefore will want their friends and colleagues to be similarly convinced.

That logic is fatally flawed. At the point of the first sale, customer has just risked "career points" by buying from you. Under the circumstances, the last thing they want to do is to undertake further "career point" risk by referring you to a respected colleague. But even if that were the right time to ask, the request is framed in such a way that it's not going to get a useful referral.

First, if the customer does give you a contact name, all you've really gotten is an invitation to make another cold call. While you can mention your current customer's name to help you get your foot in the door, the new prospect still doesn't know you from Adam. Second, the request forces customer to try to figure out what kind of prospect would be the most appropriate for you. Since when did your customer become your personal marketing consultant?

In other words, most reps don't get good referrals because they're asking the wrong thing at the wrong time and in the wrong way. And this creates an even bigger problem. If a rep has been asking for referrals in the traditional way, it will quickly become clear that the effort is largely wasted, in which case the rep is likely to approach the referral process with all the enthusiasm of a mechanical tortoise. The failure to get good referrals becomes a self-fulfilling prophesy.

By contrast, if you follow the five rules in my previous post, there's no question that you'll get great referrals that will increase your sales rate and leave you with a Rolodex full of great contacts. On Monday, I'll explain how to turn getting great referrals from a sales skill into a sales strategy -- a way to substantially and quickly build your entire business.