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Rethinking Referrals
“Can you help me identify others who would benefit from my services?”
It's a simple question, but many consultants would rather undergo an emergency appendectomy than pop the referral question. The hesitation to ask for referrals lingers, even though the odds of winning work skyrocket when a prospective client calls you as result of a referral.
Building a business using referrals should be a no-brainer. After all, what could be better than having a satisfied client wax eloquent about you to prospective clients? Granted, a referral doesn't guarantee anything, but at least you've got a potent calling card.
Given the power of referrals, why are so many consultants reluctant to ask for them?
Most Referral Strategies are Flawed
Common referral strategies—which are based on begging your clients to open their rolodexes for you—can fail miserably.
To begin with, asking for a referral can put a client on the hot seat. Recommending a consultant’s services to a colleague can be akin to suggesting a chiropractor when the person really needs a back surgeon. If your client doesn’t fully understand why a colleague might need a consultant, it’s difficult for the client to make a confident referral.
Project results vary from client to client. A successful project for one client does not guarantee success for the next one. Most clients know this, so many referrals must be qualified by saying, “We had great luck with that consultant, but your mileage may vary.” Given the general risk of hiring consultants, clients may hedge their bets to avoid the risk of making the wrong referral.
Another flaw is that it’s easy to get branded as a self-interested salesperson if you ask a client, “Can you help me meet others who can benefit from my services?” Most clients know how important marketing is to the health of a consulting practice, but engaging a client in your marketing process can be off limits. More than one consultant has gotten the cold shoulder after asking for referrals in the wrong way.
The Ultimate Referral
The best referral is a qualified one that you don’t have to ask for. Rather than pleading with clients to dredge up a list of names for you, consider a strategy to generate unsolicited referrals. It’s gratifying—and profitable—when a client volunteers, “I know an executive who could also use your help.”
Before a client will offer an unsolicited referral, two important milestones must be reached. First, you’ll have to consistently deliver on the promise of your consulting work—plus a little bit more. Look for opportunities to broaden your value to the client beyond the project you’re working on.
Help your client sort out other pressing issues by providing insights, relevant articles, and books, or by serving as a sounding board. Keep your interests focused on the client’s needs and you’ll be on your way to that unsolicited referral.
Second, remember that stellar work and a trusting relationship aren’t enough to generate an unsolicited referral. Your client must also know enough about your business to make a productive referral. Without that knowledge, your client referrals will be hit or miss, which can be a costly way to try to build your business.
As you work with clients, help them understand the breadth or your capabilities and how your services can be used most effectively. Not only will that knowledge help clients make more targeted referrals, it also helps them learn about other ways you can assist them.
You can extend a client’s knowledge of your business without resorting to a hard sell. It’s natural to share examples of other client work you’ve done as you work on a project. Use your case studies, articles, and war stories to communicate the full gamut of your capabilities. In such conversations, it’s typical to hear a client say, “I had no idea you did that.” This subtle process of education will take the guesswork out of referrals.
Keep in mind that clients brand their consultants in ways that make sense to them, not necessarily in the way you intend. To be sure that you are positioned appropriately, be systematic about bringing your client up to speed on your business.
Jump on Unsolicited Referrals
What should you do if your client approaches you and says something like, “I’ve sure been happy with your work. Is there some way I can help you?” Your inner gymnast should do a double back flip. And be prepared to respond immediately. Never let such an opportunity pass, not even for a minute.
If you’re not sure how to best use the generous offer of help, at the very least, ask your client to serve as a reference when you are pursuing other work. You could also ask for—and help the client draft—a short, written testimonial that you could use for marketing purposes.
Don’t squander the goodwill of your client by saying you’ll get back to the person. Ask for something as soon as you get an offer.
Sometimes They Need a Nudge
Even though an unsolicited referral is preferred—and often more valuable—there’s a time and place for asking directly for referrals. Instead of soliciting a list of names, though, target your request. Ask the client for an introduction to specific people you’d like to meet. You might, for example, ask to meet a person from the client’s company or industry. The point is to ask for a referral to someone you believe would be immediately helpful to you.
When you pop the referral question, you should be candid about why you want an introduction, and discuss how you plan to follow up. By clarifying your intentions, the client will have ample information to give you a ringing endorsement, and the prospective client will know whether or not to take your call.
Dump the Name Game
In many industries, for instance, insurance, real estate, or financial services, asking for a list of referrals from clients is a common and useful practice. It’s tempting to apply those referral techniques to the consulting business. But many consultants come up dry when they do that.
To harness the power of referrals, strive for quality, not quantity. You’ll spend less time, money, and effort when you chase a short list of qualified opportunities, instead of a long list of maybes. |
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