Referrals are easier to contact, the deal closes in a shorter period of time, and the gross profit is better. Why would you NOT want to deal with referrals?
We have found that many sales people have no problem calling up existing clients to ask them for referrals but they do not call the people in their pipeline that they did not close. Do not miss out on this opportunity to get back in touch with your prospects. I receive many referrals from prospects that I did not close by following up to make sure everything is going smooth and if I can answer any questions. It amazes me the number of sales people who do not even follow-up with prospects that turn into clients. Who do you think Mr. Smith is going to give a referral to - the rep who did not even call after making the sale or the rep who lost the deal but still called to make sure that there was nothing else that he, or she, could add.
When you ask for referrals be prepared with a short list of contacts that you have researched and be ready to suggest 1 or 2 to get the ball rolling. After confirming the information name, phone etc. I immediately asked for permission to use Mr. Jones' name when reaching out. I always wrote a short note thanking Mr. Jones for his help. I always kept Mr. Jones in the loop about how things were progressing with his referrals - you never know when they might cross paths and no one needs a surprise.
Do you ask the prospects who you do not end up doing business with for referrals? What obstacles come up when you ask? We look forward to your comments and you might just earn your self a "coffee card"