Are you skipping the  vital first step in generating referrals?

Have you ever wondered why you are not getting your desired flow of quality referrals even though you provide high quality service?   If yes, then ask yourself, “How many referrals have you given out in the last few weeks?” If the answer is only a few, you are missing a vital step.   Giving a timely referral can create a special bond. The right kind of help at the right moment both strengthens your relationship with your client and earns the goodwill that generates a much stronger personal endorsement than quality service alone.

The power of one referral

Lois is a financial advisor based in Chicago.   While making her client contact calls, Lois saw in her notes that a client couple had their 40^th wedding anniversary coming up.  When she asked the husband if they were planning anything special, he confided “I want to give her a yellow diamond!”   Picking up on his excitement, Lois took the time to ask a few questions. She learned the client felt his marriage was truly extraordinary and he wanted to make this anniversary absolutely unforgettable.

Lois recognized this was a life event to be celebrated.  By listening and giving the client time to express his feelings, she could share in the client’s anticipation and in a small way co-celebrate it with him.  The sharing of deep personal feelings helps build stronger bonds.

And Lois also recognized another opportunity:  She told this client that another of her clients was a diamond merchant who might be able to help him out. The husband was interested, so Lois immediately made a call to arrange an introduction. The merchant provided special care for Lois’s client in the form of a marvelous diamond and at a substantial discount.

With one introduction, Lois had delighted two clients. But she did much more than that. She participated in a huge life event for her first client, and her strengthened relationship with the happy couple will likely lead her to other friends who are able to spend $100,000 on anniversary gifts. At the same time, by bringing business to the diamond merchant, she demonstrated she could be a valuable alliance partner.

In this scenario, Lois exemplified the first step you must take if you want to receive a stream of high-quality referrals: give referrals first.

How giving referrals pays off

By referring your clients to useful resources, you advance your relationships and your business in powerful ways.

• You demonstrate that you value the client as a total person. By being attentive to what is going on in your clients’ lives – beyond the area you directly service, you learn about many more ways to help your clients.   Making an introduction in these other areas demonstrates your commitment to the welfare of the client as a total person, not just a buyer of your product or service.   This both deepens the relationship and distinguishes you from other providers.

• You elevate your status and expand your role with your client. When you provide resources that are outside your normal role, you become more valuable to them. When clients begin to see you as connected to valuable resources in multiple areas, they will share more information with you. They will seek your opinion and assistance in other areas, creating more opportunities for you to increase your value and expand your network.

• You help others win. Think how many winners you can generate by introducing a business owner to people who can fill the following roles: customer, employee, supplier, attorney, accountant, insurance agent, alliance partner, distributor, advisor, and so on. If you’re working with a family, you can introduce people who might fill these roles: physician, psychologist, real estate agent, carpenter, landscaper, baby sitter, golf instructor … the list goes on. All of these people can benefit because of your recommendations. And each of these introductions creates at least one and possibly two new referral sources.

• Your clients become powerful advocates for you. When you help others win, most will seek ways to help you. The more ways you help your clients, the more powerfully they will speak on your behalf. They will move beyond simply giving you names and become active in making sure you get connected to others. They will not only mention you to their friends, but speak with conviction about why they work with you and why others should work with you. In competitive selling situations, you need that kind of strong recommendation to win the day.

Where do you begin?

If you tune in to your clients, you’ll soon realize how many opportunities there are to step in with a helpful introduction. Tap into the power of giving referrals by following these pointers.

• Pay attention. Pay attention to what is going on in your clients’ lives. You can learn a lot just by casually asking questions such as “What’s new on the home front?” or “What’s new on the work front?” Your client might surprise you by disclosing that their company is making layoffs or that someone in the family is gravely ill. Or they might mention a promotion or a new baby on the way.

• Listen for challenges and probe further. Once you hear something interesting, find out how it is affecting your client. Whether the situation is positive or negative, you’ll learn a lot simply by asking, “What impact will have on you?” or “How is that affecting you?” Don’t forget to include the family, if it’s appropriate: “How will that affect the family?”

At a minimum, you demonstrate caring and establish a stronger emotional connection with your clients. But the rewards go much deeper. Your client’s answers may give you a key insight into the way they think or how their organization works. You may be the first to hear of new variables that are influencing their decision-making. You might also learn about new needs and new sales opportunities and be the first to develop a potential solution.

• Offer help. If you know of a person or resource that might be of service to your client, offer to connect them.  Don’t just give them a name—make the call, and be sure to put the two parties in contact. When you demonstrate your ability to help, the client will be more likely to turn to you with other needs.

Your clients will appreciate that you pay attention to what’s happening in their lives. If you respond to special situations and challenges with an offer to help, you’ll demonstrate a commitment to them as people, not just a buyer of your product or service.

Model the behavior you want in return. You will be impressed by how powerfully it pays off.

Michael Brizz, CMC, CSP is the creator of the Referral Mastery System. He coaches sales professionals and conducts training for many of the leading companies.  Further information on Michael and referral strategies can be viewed at ReferralMastery.com. 800-865-2867

Creator of The Referral Mastery System

The fantasy: a horde of other companies sending you all the referrals you desire.  The reality: hundreds of hours squandered trying to develop relationships with complementary service providers with little to show for your effort.

The logic of linking with other professionals to better serve your clients is compelling.  In addition, there is much to learn from the right partners.  And with coordinated marketing, everyone wins by securing new business they would be unable to secure without the alliance.   For most sales producers, the dream of linking with other professionals to grow each others’ businesses never becomes reality despite the provider’s earnest efforts to build those relationships and give referrals.  Far too many providers commit to an alliance initiative without a clear strategy, without defining expectations, and without measures for success.

What we all discover, sooner or later, is that not everyone is a good alliance partner.  While most complementary professionals are very willing to accept your referrals, very few are willing to commit to a productive win/win/win alliance.  Successful alliances start with finding the right partner.  A mistake during this phase of the process dooms the alliance to failure.  No effort in the future can make up for the wrong partner.

What are some common mistakes?

1. Trying to forge alliances with little understanding of the potential partner’s client base, marketing strategy, or growth objectives.  An alliance makes sense if both alliance partners are focused on serving the same type of clients.  Just because you have capabilities to help a wide range of people, does not mean you should establish alliances to serve all these different types of people.  An alliance with a divorce and family practice law firm is very logical if your target market is divorcees.  However, it is just a waste of precious resources if you are targeting 401K plans or payroll services.

If the attorney or accountant is in the “wind down” phase of their business, it is unlikely they will be a strong referral source for you.  While they may have a large client base, they are no longer trying to grow their business.  They don’t have any incentive to invest in an alliance that will pay off down the road.

2. Misfit of business maturation or size.  If you are a solo producer with a relatively small practice and you are trying to link with the most established provider in town, you have little to no significance to that provider.   They likely have established alliances that were put in place a long time ago.  Unless you provide special expertise or an opening to a market that is a target for them, it doesn’t make sense for them to invest much in a relationship with you.  Will they accept your referrals and be gracious about saying “Thank you?”   Yes.   But will they invest in a relationship with you? Not likely. It doesn’t make sense for them to do so when there is a mismatch of what each party can provide to the other.

3. Trying to forge too many alliances.  Alliances frequently require a serious commitment of nurturing before they bear fruit.  There are a limited number of alliances that you can effectively support.  An alliance can’t last if both parties fail to provide sustained support.

How do you select the right partners?

First, clarify your target market: who you want to serve and how you want to distinguish yourself in that target market.  This will help you develop your selection criteria and determine what role you want the other professionals to play.

Second, develop your vision of how you want an alliance to work for all the parties.  What roles do you see each partner playing?

Third, define your criteria of what you want in an alliance partner. Consider the following:

• Fit of client base:  Do they have a client base that is attractive to you and do you have one that is attractive to them?  You can’t expect a partner to invest time and money pursing business that is not in alignment with his or her marketing goals.

• Fit of growth objectives and marketing strategies.  Are their growth objectives and beliefs on how to generate business compatible with yours?

• Complementary expertise. Alliance partners must provide expertise that serves the needs of your target market.  The alliance should provide all alliance partners with a competitive advantage because of the distinctive combination of competencies you provide collectively.

• Position to recommend.   Do they carry enough influence with their clients so that an introduction from them is treated like a strong recommendation?    The housekeeping staff person may be on very friendly terms with the law partner however his opinions have little influence on legal or financial matters.   Are they limited by a perceived “conflict of interest” and therefore unable to refer you?

• Willingness to invest:  Is the other party willing to invest time, money, and exposure to their client base to the same level you are?  Get these issues out on the table quickly and test them by asking for an early commitment of time and money.

• Are they dependable?  Do they provide quality service and do they fulfill their commitments as an alliance partner?  Ask if they have worked with others in the past in similar types of alliances.  Find out who they were and call them.

• Potential value to the partner.  The alliance must be worthwhile to your partner.  Define specifically what you feel they can gain from it and strive to structure the partnership so both parties win in a roughly equal manner.

Fourth, develop a list of candidates by asking clients and others in your network to recommend service providers they view highly.

Fifth, interview a few for the purpose of exploring an alliance.  Learn about their vision for their business, their growth objectives, their client base and target market, and how they see an alliance fitting with their marketing strategy.

Sixth, start with the one (maximum two) person or firm you feel is the best fit and create a joint marketing plan.  Develop a clear set of expectations for both parties.  Identify an event or some marketing initiative where both parties must invest.  This will give you an early indication of their commitment.  Establish measures of success.  Set short-term goals such as the number of referrals you will generate for each other in the next quarter.  Then review the progress quarterly to see if both parties are meeting the expectations and how the strategy is working.   Only when you have one alliance working well (or you decide it can’t work) is it the time to explore the potential for another win/win alliance.

With these steps, you will save time because you will focus only on those who have real potential to enhance your practice.  You will also quickly distinguish between those who can be serious partners and those who just talk a good game.

An alliance strategy can provide big wins if you have the right partners and support them well.  You are much more likely to succeed by focusing on a small number where there is good fit of target market, marketing objectives, and expertise.   A small number of highly effective alliances is vastly superior to a large number of ineffective ones.

Michael Brizz, CMC, CSP is the creator of The Referral Mastery System^® (www.referralmastery.com).  He works with sales professionals to drive their business growth through referrals. He can be reached at 800-865-2867 or mike@referralmastery.com.

When Not to Hire a Coach

From time to time, managers and advisors consider the option of hiring a performance or business coach. Unless the conditions are right, an investment in coaching can be a waste of money. When should you NOT hire a coach?

1. When the advisor or manager is unclear on what he or she wants to accomplish. Without clear objectives, you can’t determine which coach or coaching process is a good fit. Before considering a performance coach, identify specifically the areas you want to strengthen. Then prioritize those in the order of potential payback.

2. When you are in the middle of an intensive skill-building program from the home office. You can’t effectively execute several change initiatives at the same time. Advisors, who are in the first year or two in a new career and involved in an intensive training program, should look first to maximize what is being offered by the home office program.

3. When you are undergoing significant personal change or trauma. If your family member is facing a serious medical challenge or dealing with an issue like divorce, it is extremely difficult to focus your energies on making habit or systems changes in your business. Implementing change and driving business growth require focus and energy. A performance or business coach is not the right resource during times of personal trauma. At these times, a psychologist or family counselor is a better fit.

4. “To Fix Your Business” or to “Fix The Advisor”. No coach can force an advisor to make changes. No one coaching organization is the TOTAL answer. The advisor needs to approach working with a coach with a sincere desire to improve, a willingness to change, and a commitment to address specific skills or business areas.

5. When looking for a miracle to save a sinking career. Coaches are not miracle workers. Some coaches have strong processes and systems that can upgrade performance. They can teach skills and help develop effective marketing strategies. However, coaches can not save someone who is not a good fit for the business.

When Hiring a Coach Can Be Profitable

1. When you (or your advisor) are clear about the areas you want to strengthen. At this point, you (or the advisor) can better assess which coaching process and organization is a good fit for your needs.

2. When you are ready to make a commitment to upgrade. Timing is a legitimate factor. To get maximum value from a development process, you must be ready to commit time and energy – not just money.

3. When you feel that the coach’s process fits how you learn and change. If you are a person who prefers to implement things one-step-at-a-time, do NOT select a boot camp program where you attend for several days and then are left on your own to execute. If on-going accountability is helpful to you, select a coaching process with frequent meetings on a regular schedule.

4. When you want specific expertise in a priority skill or business area (e.g. referrals or marketing or selling skills or technology)

5. When you skills or results are not improving at the rate you desire.

6. When you feel a need for accountability beyond that available in your organization

7. When you want an independent assessment of your business or skills or feel the need for a different perspective than what is offered internally.

For a free checklist to identify and prioritize areas to strengthen, mailto:checklist@referralmastery.com or call 800-865-2867.

See Part 2 of 5 Reasons NOT to Hire a Coach in the Referral Mastery Blog.

When selecting a coach, create a checklist of what you want in a coaching relationship. Here are a few criteria to consider.

1. Demonstrated expertise and track record in the areas you want to strengthen.

2. A clear methodology for addressing the areas you want to strengthen.

3. Specific measures so you can track your progress

4. Teaching methodology that fits how your learn and change

5. Clear money-back guarantee

6. Personal style with which you are comfortable

7. Provide options for on-going support.

Do you want to raise your effectiveness in one of the following areas?

A. Get more done in less time by strengthening your time management habits and streamlining your work processes

B. Consistently generate high quality referrals by implementing a proven and repeatable system

C. Carve a niche: identify a profitable target market that fits you and develop a comprehensive plan to build a strong position in that target market

D. Elevate the quality and consistency of your client service. Executing clear service standards and establishing service levels that secure loyalty and distinguish you in the marketplace.

If yes, call 800-865-2867 or write to info@referralmastery.com and we will send you a free background kit on our methodology and expertise. You can evaluate this to determine how well it fits your criteria.

]]> http://www.referralmastery.com/blog/5-reasons-not-to-hire-a-coach-part-2/feed/ 0 http://www.referralmastery.com/blog/referral-mastery-20th-anniversary-specials/ http://www.referralmastery.com/blog/referral-mastery-20th-anniversary-specials/#comments Wed, 13 May 2009 20:29:29 +0000 admin http://www.referralmastery.com/blog/?p=33 In appreciation for twenty (20) wonderful years of helping our clients improve their profitablitity through referral generation, we have comprised two (2) extraordinary toolkit packages that will “jump start” and.or dramatically improve your business’ growth through referral generation.

Please enjoy our 20th Anniversary Specials

Jump Start Your Referrals Toolkit

This special toolkit will get your referrals flowing quickly. Plus you save $34 by ordering them as a package. You will receive the following tools:

• “Get 5-10 More Referrals Every Week”
• “How to Quickly Develop an Elite Corps of Advocates Who Will Actively Promote You”
• “How to Get Referrals When Performance Stinks”

For more information or to order please visit our 20th Anniversary Specials page.

Become a Referral Master Toolkit

For advisors who want to create dramatic growth in their business through referrals, the “Become a Referral Master” toolkit includes a treasure chest full of strategies to generate all the quality referrals you desire. This powerful package includes:

• “Master the Referral Process: 31 Lesson Series”
• “Attract High-Quality Referrals with Distinctive Events: How to host referral events that are fun, flawless, and profitable”

When you order these as a package, you save $51. The powerful package is only $297.

Go ahead and check out the entire program for a full month. Learn the strategies, review the scripts, examine it all. If you don’t feel the program will make your next event more effective and more profitable, just send it back undamaged and you will receive a full refund.

Plus Special Bonus: (a $500 value)
When you order the Become a Master Referral Generator Toolkit, you will also receive two 30 minute coaching sessions with a Referral Mastery^® Coach which you can use to address roadblocks or craft a tailored strategy for a highly connected wealthy client.

For more information or to order please visit our 20th Anniversary Specials page.