Teach Reps to Develop Referrals, Decrease Cold Calls
By Jim Domanski

Felix Mendendez hates cold calls. In fact, he won't make them. Yet he's one of the top sales reps in his company. His secret? Referrals. He seeks referrals from customers whenever he can. The “Mendendez Method” of referral selling is a good one, so pay attention and teach it to your reps.

Why the big deal about referrals? In business-to-business selling, referrals close at 40%, 50% … heck, even 100%. That's not an exaggeration. It's a fact. It makes sense, doesn't it? Here are two reasons why. First, when you call a referral, you have the common ground of the person who gave you the name. It's not a cold call. You have a reason for calling, and most referrals listen to what you have to say. That's half the battle.

Second, and perhaps more important, there's the explicit or implied endorsement of you, your company and your product/service by the person who made the referral. That endorsement creates an immediate element of trust.

So why don't more reps make sales the Mendendez way? Many reps avoid a veritable gold mine of leads for two reasons.

First, they don't want to seem aggressive. You may think buyers don't like being asked for referrals. But if you've done a good job selling the product and if the customer has gained from it, you've earned the right to ask.

Too pushy? Hey, get over it. The worst thing that could happen is that the customer will say “No.”

Second, they don't know how. Let's look at how Felix tackles referrals. I've monitored Felix several times over the last few months, and I've seen him use a simple two-step approach:

• The request. After Felix takes care of any business issues and ensures that the customer is completely satisfied, he'll say “I was wondering if you had a name or two of any doctors who could benefit from (the product) like you have?” Then he shuts up and waits.
  Felix's approach is candid. Nothing fancy—it's straight to the point. His approach is also clever. He mentions “benefits” to remind his customer that the request isn't about Felix but about how others could benefit too. In other words, it's a win-win situation.
• The reward. After Felix receives a referral, he says: “Thanks. I really appreciate that. Hey, if I end up working with any of those people, I'll be sure to send you a cap or golf shirt. Which would you prefer?”
  Interestingly, the reward is held back until a name is given. In other words, it's not a “bribe”—that's cheesy. He uses the reward to say “Thanks.” That's classy. In short, there's nothing complex about Felix's approach to referral selling. He's created an effective technique—but more important, he uses it. And that's why he's one of the top reps in his company.

Jim Domanski is the president of Teleconcepts Consulting, a consulting and training firm specializing in outbound business-to-business telesales programs. He's authored three books on the topic of telesales. Reach him at (613)591-1998 or on the Web: www.teleconceptsconsulting.com.