How To Sell by Word of Mouth

Hi there,

This post follows the one that I just posted some minutes back…https://ashishtandon.wordpress.com/2013/07/04/how-to-screw-up-a-referral-sale/

WHY?

Because in this post I am talking about asking your clients for referrals at the right time !!

But in this post I am also touching on aspects of a successful sales strategy that the intelligent sharp sales rep can deploy to maximize his outcome from his referrer..

Here’s how I believe that a successful sales rep could win by selling using WOM

Nothing sells better or faster than word-of-mouth.  Sales generated through referrals are larger than those resulting from other lead-generation activities.  Why?  Simple.  By making the referral, the “referrer” is eliminating uncertainties like “can this rep be trusted?” and “is this rep worth my time?”  The sales process builds momentum more quickly, resulting in an easier, faster close.

There are three rules to developing sales opportunities through word of mouth:

  • Rule #1.  Ask for a Referral at the Right Time. Reps typically ask new customers for referrals when the first sale is closed, as in: “do you know of anyone else who needs our product?”  That’s dumb.  Why should an existing customer – who has already stuck his or her neck out by buy from you – stick it out further by risking their own business contacts?  The time to a referral from a customer is AFTER your product has produced a measurable benefit for that customer’s firm.
  • Rule #2. Ask Your Source to Take Action. If all you get is some contact information, you’re just setting up a cold call.  Instead, ask your current (happy) customer to call or e-mail the contact.  That way the current customer is essentially “endorsing” you, which will jump start your sales process.  IMPORTANT: Ask your current customer to give you a heads-up when they’ve sent the email or made the call.  Without this confirmation, you won’t know the best time to call the contact, which is within a day (preferably less than an hour) after the referral has taken place.
  • Rule #3. Keep Your Source in the Loop. Your existing customer is likely to have ongoing commuication with the prospect, and can help you move the sale forward simply by remaining involved as a interested spectator.  So follow up!  Contact the referrer within a day after the promise to send the email.  Express gratitude and (if necessary) gently remind the customer of his or her commitment.  After you meet with the new contact, send another e-mail with a thank-you and a status report. (E.g. “You were right; Fred’s firm does have a need.”)  Finally, if the referral actually results in a sale, be sure to send another thank-you.

If you found this blog useful, please visit me on https://ashishtandon.wordpress.com and follow me !!

Feel free to write in to me at ashish.tandon@gmail.com

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