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Hello my friends,
I will share some more tips from my very good friend on network marketing.It really works great if you are willing to commit to the work and follow the tips.It is really working good for me and increasing my income.Hope you enjoy.
Kathy martin
simikathy@comcast.net
Referrals: A Valuable Part of
Your Marketing Process
By Stewart Mosberg
It has long been established that the cost of developing new business far exceeds that of gaining clients by referral. I have seen a number of statistics on this subject. My best guess at what percentage of referrals to plan for versus developing business from cold calls is the good old 80/20 principle. Basically 80% of your new business will come from sales efforts and 20% from referrals. The value of the two will be determined by the quality of the account. But it is best not to rely solely on one or the other. Both are needed, both are valuable
Generally speaking, it is safe to say that today's cost of developing new business is astoundingly high when compared to gaining business through the endorsement of a satisfied customer.
If you take into consideration the hours spent prospecting, targeting, calling, mailing, calling, leaving voice-mail, calling, getting past the receptionist, the administrative assistant, sending promotional materials, finding the decision-maker, traveling, making a presentation . . .well, you get the idea. It is tedious, time consuming, fraught with obstacles and yields far less successful results than making a call based on a referral.
Move To The Head Of The Line
Forgive the analogy, but referrals are like having a VIP pass at Disney World. They get you to the head of the line -- fast! Sure the other patrons get irked. But they also look at you in awe, and here's the best part, you're already enjoying the ride while they're still fretting over being bumped.
I know that seems unfair, particularly if you're the one broiling in the noonday sun on a forty-five minute line. But hey, after all is said and done, it's a competitive world.
What follows are a few tips you can use to get to the head of the line sooner, or rather, to gain referrals, get your foot in the door and be one step closer to the sale.
In the following article I will discuss when to ask for a referral, what questions to ask, how to determine the right time to ask, what to do when you get the referral and how to maintain the relationships with the existing client and the new prospect.
Get 'Em While They're Hot!
The best time to ask for and get a referral is when the client is still happy. This is not as obvious as it may seem. Many clients keep the praise to a minimum, for fear of your raising prices next time, I suppose. Others are too busy to let you know how great the work was. Of course, as many of us have learned, when we do screw up, we'll certainly hear about it -- big time! Conversely, when a project is running smoothly everyone involved will instinctively know about it.
Superior Service
Most of us work on projects in phases. Here's where the referral process actually begins. Each time you deliver a phase it's a good idea to re-evaluate where you are on the budget and schedule.
Ask the client if you have met expectations. Are they satisfied with the results so far? Is there anything else that can be done to improve the project? Don't be afraid to ask this one. They'll probably say no. But if they say yes, be prepared to act on it. The sense they will get is that you are genuinely interested in satisfying them and that service is important to you. Service, by the way, is a key factor in repeat business and yes, you guessed it, referrals.
These checks and balances will help you gain your client's confidence, enable you to correct a problem before it is too late and act as a reminder when you ask for the referral. When all else fails you can always focus on your superior service as a selling tool, particularly if it can be corroborated by a satisfied client.
Set The Stage
Assuming everything has gone swimmingly well and the client's big grin at the end of the project clues you in to the degree of satisfaction, offer to take them to lunch to celebrate.
It needn't be then and there, but in anticipation of the final presentation, try to set your luncheon date in advance. If they agree, hold your referral request until you are out of the office. If they turn down the lunch offer be prepared to ask them about referrals when the job is delivered.
Feedback For The Future
Another valuable tool for getting a heads-up on the success of the project is to send the client a questionnaire. The main thing to remember when sending a questionnaire is to send it immediately after delivering the job and to keep it simple.
Don't expect them to take lot of time answering detailed inquiries about the subtleties of the design solution or other esoteric subject matter. Remember, the purpose in sending the questionnaire is to get feedback on your performance. Hopefully the responses can be used for future testimonials.
It is best that the questionnaire comes from a third party, perhaps a researcher you know or other colleague in an allied field. This will help elicit honest responses. Answers may not always be positive, but they can be used to your advantage.
The Positive Side Of Problems
Sometimes the hurtful, honest answers are more valuable than hype and generalizations. You can learn an awful lot about what you are doing wrong. The negative responses can be turned into opportunities to improve service and the quality of your product. It might even be a chance to win back a dissatisfied client.
By improving a problem area and letting them know how much you appreciated their candor, you can ask for another shot to prove yourself. Trust me, it works.
The more salient points in your questionnaire should include:
* The name of the client and project
* A satisfaction quotient with degrees of measure, i.e., on a scale of 1 to 3; 3 = Exceeded expectations, 2 = Met expectations and 1 = Did not meet expectations. You may also wish to leave a few blank lines after each question for explanations or embellishment by the client.
* You will want to include subjects such as: Price/Value Relationship, Creativity, Schedule, Budget and Cost, Added Value, and finally, a request to use their responses when pitching other clients (preferably not their competitors.)
Also, don't be afraid to ask if they would use you again and last, but not least, if they are willing to refer you to other prospects.
Internal Opportunities
Referrals, incidentally, can come from within the client's company. For example, they could be from another department or division, a different brand, perhaps even another location. Inter-company referrals are the best of the best and a lot easier to get. And do not hesitate to ask if the client can also recommend you to friends and business associates in other firms.
You can call the prospect yourself or ask the client if they wouldn't mind calling for you in advance. The internal referral works well because your work is visible or easily accessible to someone within the same company.
Hopefully your previous work was a high-profile project and many of the client's colleagues will want to know whom they used for the assignment. Your main goal, remember, is to gain repeat business. Building a core account simplifies the growing of your business by keeping a steady flow of work. It's important to remember this when targeting firms. Look for clients that can sustain you in lean times. We use to call these "bread and butter" accounts. Whatever you call them, they're great to have.
You Asked For It
The job has gone smoothly, no budget overruns, there have been no problems or unnecessary delays (client delays don't count - unless they forget that they're the ones who delayed it). By the way, if the project is running over the estimate as a result of client changes, be sure to alert them of any additional cost and send an addendum to the proposal as soon as possible. Be upfront about extra costs as early as you can, preferably before you do the work.
Recognizing the client's satisfaction for a job well done, shouldn't be too difficult. When delivering the final phase, make sure you thank them for the opportunity to be of service. Tell them how much you enjoyed working with them and that you are looking forward to working together again.
Go For It!
Okay, now here it comes. . .look them straight in the eye and repeat after me, "This was such a great experience. Can you think of anyone else who might benefit from similar work? Perhaps a colleague at the company, maybe someone you know elsewhere?"
Now the hard part. . .wait for a response (silence is golden here). Let them think about it. If they come back with a name, ask for another. If there's hesitation, ask if you can give them a call in a few days and then . . . be sure that you do.
To help the process along you might even suggest writing an intro letter for them to sign. Under any circumstances, be sure you ask permission to use their name as a reference. Most satisfied clients are more than willing to refer you, and most will certainly allow you to use their name to get past Mr. Big's Administrative Assistant. Even when having to resort to voice mail, you can leave a message stating your name and company, and a very short description of why you are calling.
Making The Call
Mention your reference right up front. For example, "Mr. Big, this is Greta Smiley. Charlie White at Z Corp suggested I give you a call. I'm President of the X Agency, a leading graphic design firm (don't embellish too much, be short, to the point and credible). We recently completed a successful program for Charlie and I'd love to share it with you. I'll try again tomorrow (or next Thursday, etc.)."
That's it. Twenty seconds. Be sure to call back when you say you will and, if necessary, try again one or two more times. If that fails, you can leave a number for the prospect to call you back. If you leave a message that you would like to stop in to see them on such and such day or mail a brochure and need the correct address, the chances are they will call or have someone else call. At that point you can follow up as appropriate.
Stay In Touch
In this era of voice mail and caller ID, you can never be sure if someone is actually too busy to take calls or just plain uninterested. I find the best way to stay in touch without becoming a nuisance is to ask if you may keep them in your call file and contact them from time to time.
Once every four to six weeks is a good starting point. It is also helpful to just ask when it would be appropriate to call them back. You can always suggest a time frame, i.e., "Would it be all right if I called you in a month or so?"
Quality Correspondence
In addition to the periodic calls, it is valuable to send them something on a regular basis. It needn't be an elaborate mailer. However, if you have some creative, provocative promotional material, use it to your advantage. Absent any formal piece, sending relevant articles about their industry, downloaded from the internet or found elsewhere, is a way to let them know you are interested in their problems and are aware of their industry niche.
This also works with the original client that referred you. By sending clippings and other pertinent material, you can stay in touch without being a nuisance. Once every four to six weeks should be agreeable. Give them time to receive and read the material, before following up. From time to time give them a call and ask if they've been receiving the articles and what they thought of a specific issue mentioned in one of them. To keep it timely, you can even fax articles to them with a short note, e.g., "Thought this might be useful."
Commit To A Schedule
Staying in touch is easier if you use one of the available database software packages. I have used Now Contact/Now Up to Date and also Outlook. Either is fine. Other programs are Act! and FileMaker Pro. The main thing is to be able to link your contact file with a calendar. In that way, you can make notes in your prospects file about each call and contact you have had with them (their assistant's name, children's birthday's, anything that helps make it more personal) and than link to the calendar and earmark the date you need to call them back. The program should allow you to toggle back and forth or keep both open at the same time. You can then have their particular folder open while you are making the call.
Remember too, the new referrals can become clients who will then be in a position to refer you as well. Hey, it beats cold calling!
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