Converting a referral

Struggle is the pioneer partner of an advisor. We all strive hard to generate business, build our brand and satisfy our clients. And after long unbroken efforts, we are able to provide services to our customers which makes them happy. Word of mouth works wonders for our reputation and our business. Concurrently, it is a sin to leave a customer unhappy because he will tell the world about it. And when your client is contented, he would pass on the joy to his dear ones and acquaintances. A referral is stronger than all your marketing efforts. If your client is satisfied with your services, then only he would refer you, so a lot of efforts have gone into generating this referral, you should value it.

“Referrals are given easily. If you don't take the time to establish credibility, you are not going to get the referral. People have to get to know you. They have to feel comfortable with who you are and what you do.” ~ Ivan Misner

So, now when your client honours you by giving a referral, how do you justify your client's conviction in you, how do you convert the referral?

Following are the steps that you must follow in order to exploit the opportunity:

• Acknowledge: When your client is referring you to his friend, he is giving a little bit of his reputation to you. You should oblige the favour that he has extended, you owe it to him. You may acknowledge his gratitude by sending a personlised message or a card or a small token of appreciation to let him know that he is special and his gesture is highly appreciated. This will have a positive impact on your existing client as well as the lead. The former will be motivated to refer more people and the latter will be pleased with the treatment you offer to your clients.

• Be proactive: Don't take referrals for granted. Once you receive the referral, don't be lazy and put his number away assuming you can call him later. You must call him immediately, because the lead might be looking for alternatives as well, your prospect may land up in someone else's office because of your lethargy. If you are not able to get through his number or he is not responding, follow up from the source of the lead.

• Introduce yourself and the reference: When you call him for the first time, introduce yourself briefly and the client who gave you his reference. Ask the client what he requires, so that you can get yourself prepared with the solutions that you have to offer when you meet him. Follow with a small narrative of your skills and communicate that you have the ability and special skills to solve his problems. Finally, fix an appointment with him.

• Get your facts together: Before going to physically meet your prospective client, you should do some homework. Get information about him, his family, his priorities, his nature in general from the lead source and from your telephonic conversation. Lay down the facts and figures and be ready with the solution that you can offer him and alternative solutions in case you are turned down.

• The meeting: This is the chance to make the everlasting first impression. Create a pleasant environment for the client, even if you have had a hectic day, it shouldn't be showing on your face. The client should be comfortable with you, and you should let him talk about himself, his family, etc. before you get on to business. Next comes the critical time when you have to pitch in your product. Remember, he is not like the client who referred you, don't presume he knows you, your style, the products you offer, etc. So, start afresh and give your best shot. Remember your client's trust and reputation is at stake, so handle with care. The lead may be unsure even after your best efforts, give him time to respond and follow up.

• What if you couldn't convert: Even after your utmost efforts, if the referral is not converted, try to gauge the circumstances which lead to the same. You may ask him politely or the source of the lead. You would know what you could have done better and it would also give you a lesson for the future. Remember, closing the entire episode on a positive note, since today he might not have bought your products, but tomorrow he may.

• Update your client: Remember, that you should always keep your client in the loop. You must communicate the status of your dealings with the lead, like the call, your meetings, etc., timely to your client. Whether the referral materializes or not, you must express gratitude to your client for his courtesy.

A referral is the greatest compliment that you can get. It is a gift from your client, who believes in you. Try your best to stand upto the donor's expectations. The above process is simple but is efficient in helping you paying for your hardwork. So, if you get referrals for your hardwork, follow the tips and expand your business by increasing the referral conversion rate.

“Win people's trust and win more business for yourself.”