From Reference to Referral

OK, let’s say I’m at the prospect’s house and I’ve done my warm-up and completed a walk-around. It’s at this point that I introduce the idea of visiting that satisfied neighbor. I explain that the Smiths, at such-and-such an address, faced a similar decision and decided to use our company to do the work, and that the Smiths would be happy to talk to the prospect about it. Then I put the prospect in my car and head for the Smiths.

Once there, I make my introductions and ask a few pointed questions to open the dialogue. Other than that I keep my involvement to a minimum. A prospect chatting with a satisfied customer builds your credibility more than all the certificates and licenses you could assemble because it allows the prospect to direct their own questions to someone who has already been through the process, someone who’s had to make the same decision and has harbored the same doubts.

Of course, it’s not always easy to find past customers who are home when you intend to stop by. That’s why I put together a reference list ? actually multiple lists, for daytime and evening hours ? with pictures of past customers, their address and phone number, as well as the nature of the work we did for them.

I want a diverse list with all kinds of people: every age, race, and nationality, as well as people who are retired and people who are working. I learned in college that people are comfortable with those they know or feel they have something in common with. I build these lists by returning to jobs that were installed a week or two before. Once there, I warm up with those homeowners. Then I walk the job with them and ask about the work and the product, any problems that might have occurred in the installation or handling of the job, and I generally make sure that the homeowners are happy with what we did. I tell them that they were great customers to work with and I ask if they would mind talking about their experience with our company to someone else who is considering using our services. I ask them if they would mind if I take their picture. I usually take about four pictures. I include the owners, their pet or pets, and myself. Pictures are vital because they make your references real and accessible.

Give Them a Reason to Call

If there are no past customers in the neighborhood for me to bring my prospect to visit, what I want is for that prospect to call the people on my reference list.

The time to suggest that the prospect make the call is after the warm-up and just before I measure. I say, “Would you do me a favor? I have a list of customers who have worked with us, and I wonder if you could call them and just check us out. You can ask them anything you want.”

Sometimes people hesitate to call simply because they don’t know what to say. So I make suggestions, such as: What a lot of people like to ask about is whether we did everything we said we were going to do; whether we cleaned up and left the property in good condition; and whether the homeowner would use our company again.

I also provide them with an incentive for making those calls. I tell them to circle the photos of the people on the photo reference list that they called and make notes on the page. For every reference they contact, I give them $50 off the price of the job. They can talk to as many as six references for a $300 maximum discount.

So while I’m out measuring the windows, the prospect is on the phone talking to past customers. When I return from measuring, I ask which of the references they contacted and what those references said. The average number of references that prospects will call is two. If they didn’t contact anybody on the list, then I pull out my cell phone, contact one of the references, and put the call on speaker while I ask the relevant questions. Making that connection between your prospect and a happy customer is your first and perhaps biggest selling challenge; it’s the linchpin of your close. Don’t go forward without it.

Useful Tips

Here are some pointers to make this system work better for you:

• As you build your photo reference list, switch out your references so those people don’t get tired of receiving calls from prospects.
• Make sure you include among your references those customers who experienced some kind of a mistake on the job. The fact that your company made good on that mistake makes that person the best referral to have and further enhances credibility.
• If people don’t want to have their picture taken, don’t use them for a reference. It defeats your purpose.
• You can use this system with any kind of lead. The fact that people are willing to sit through your product demonstration means they are willing to make the call.
• It doesn’t make any difference if the product you are selling is gutter covers or roofing, the principle is always the same: Send them inside to make calls while you’re outside measuring. Instead of sitting around wondering how much the job is going to cost, they’re on the phone talking to happy customers. When you come back, that canvass lead is acting like a referral lead.
• If you do everything right, 70% of the people you ask will make the calls. The key lies in making the effort.

Who Can Do This

Sound difficult? Complicated? It isn’t. You just have to be relatively organized and willing to put some time into it. It takes planning, work, and recordkeeping. But wouldn’t you be willing to do that if you could double your close ratio? Think about it: If you’re a customer and you really like the product and you like the person you bought the product from, would you mind telling people about it?

How long will it take you to make this part of your repertory of selling skills? That’s up to you. But when I’ve closed the sale, I say, “Hey, if we do a fantastic job, would you mind telling other people what we do?” That sets the stage when I show up two weeks later looking to put them on my reference list.

Yes we’re all busy and this takes time and work. And you have to do it completely and correctly. But let me ask this: Are you too busy to make money?

?Rodney Webb is a writer, speaker, and premier sales trainer in the home improvement industry. Visit his websites at skillent.com or rodneywebb.biz.