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Interviews with consulting leaders,
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Articles: Alan
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Wall" column, why IT outsourcing
fails, fighting fraud in pay-per-click
advertising, how to get powerful testimonials,
turn client conflict into opportunity,
and avoid the most common consulting
project screw-ups.
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The
Guerrilla Consultant –
a newsletter dedicated to applying the principles
of Guerrilla Marketing to the work and lives of
consultants.
Brother, Can You Spare a Dime?
Re•fer•ral
n.: A person recommended to someone or
for something.
Few tools pack the marketing wallop of a strong
referral. In fact, a prospective client is three
times more likely to buy from someone who comes
with a strong referral.
So
why do consultants struggle with the process of
asking for referrals?
One
reason is that most of the advice we get about
generating referrals just doesn’t work for
consultants. Traditional thinking about referrals
has us pleading with clients for a list of people
we can “help.” That just turns referral
marketing into a beg-a-thon.
There’s
got to be a better way.
Enjoy the article, and let
me know what you think.
Mike
McLaughlin
Co-Author, Guerrilla Marketing for Consultants
Rethinking
Referrals
“Can
you help me identify others who would benefit
from my services?”
It’s
a simple question, but many consultants would
rather undergo an emergency appendectomy than
pop the referral question. The hesitation to ask
for referrals lingers, even though the odds of
winning work skyrocket when a prospective client
calls you as result of a referral.
Building
a business using referrals should be a no-brainer.
After all, what could be better than having a
satisfied client wax eloquent about you to prospective
clients? Granted, a referral doesn’t guarantee
anything, but at least you’ve got a potent
calling card.
Given
the power of referrals, why are so many consultants
reluctant to ask for them?
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“The best referral is a qualified
one that you don’t have to ask for.” |
Most
Referral Strategies are Flawed
Common
referral strategies—which are based on begging
your clients to open their rolodexes for you—can
fail miserably.
To
begin with, asking for a referral can put a client
on the hot seat. Recommending a consultant’s
services to a colleague can be akin to suggesting
a chiropractor when the person really needs a
back surgeon. If your client doesn’t fully
understand why a colleague might need a consultant,
it’s difficult for the client to make a
confident referral.
Project
results vary from client to client. A successful
project for one client does not guarantee success
for the next one. Most clients know this, so many
referrals must be qualified by saying, “We
had great luck with that consultant, but your
mileage may vary.” Given the general risk
of hiring consultants, clients may hedge their
bets to avoid the risk of making the wrong referral.
Another
flaw is that it’s easy to get branded as
a self-interested salesperson if you ask a client,
“Can you help me meet others who can benefit
from my services?” Most clients know how
important marketing is to the health of a consulting
practice, but engaging a client in your marketing
process can be off limits. More than one consultant
has gotten the cold shoulder after asking for
referrals in the wrong way.
The
Ultimate Referral
The
best referral is a qualified one that
you don’t have to ask for. Rather than pleading
with clients to dredge up a list of names for
you, consider a strategy to generate unsolicited
referrals. It’s gratifying—and profitable—when
a client volunteers, “I know an executive
who could also use your help.”
Before
a client will offer an unsolicited referral, two
important milestones must be reached. First, you’ll
have to consistently deliver on the promise of
your consulting work—plus a little bit more.
Look for opportunities to broaden your value to
the client beyond the project you’re working
on.
Help
your client sort out other pressing issues by
providing insights, relevant articles, and books,
or by serving as a sounding board. Keep your interests
focused on the client’s needs and you’ll
be on your way to that unsolicited referral.
Second,
remember that stellar work and a trusting relationship
aren’t enough to generate an unsolicited
referral. Your client must also know enough about
your business to make a productive referral.
Without that knowledge, your client referrals
will be hit or miss, which can be a costly way
to try to build your business.
As
you work with clients, help them understand the
breadth or your capabilities and how your services
can be used most effectively. Not only will that
knowledge help clients make more targeted referrals,
it also helps them learn about other ways you
can assist them.
You
can extend a client’s knowledge of your
business without resorting to a hard sell. It’s
natural to share examples of other client work
you’ve done as you work on a project. Use
your case studies, articles, and war stories to
communicate the full gamut of your capabilities.
In such conversations, it’s typical to hear
a client say, “I had no idea you did that.”
This subtle process of education will take the
guesswork out of referrals.
Keep
in mind that clients brand their consultants in
ways that make sense to them, not necessarily
in the way you intend. To be sure that you are
positioned appropriately, be systematic about
bringing your client up to speed on your business.
Jump
on Unsolicited Referrals
What
should you do if your client approaches you and
says something like, “I’ve sure been
happy with your work. Is there some way I can
help you?” Your inner gymnast should do
a double back flip. And be prepared to respond
immediately. Never let such an opportunity
pass, not even for a minute.
If
you’re not sure how to best use the generous
offer of help, at the very least, ask your client
to serve as a reference when you are pursuing
other work. You could also ask for—and help
the client draft—a short, written testimonial
that you could use for marketing purposes.
Don’t
squander the goodwill of your client by saying
you’ll get back to the person. Ask for something
as soon as you get an offer.
Sometimes
They Need a Nudge
Even
though an unsolicited referral is preferred—and
often more valuable—there’s a time
and place for asking directly for referrals. Instead
of soliciting a list of names, though, target
your request. Ask the client for an introduction
to specific people you’d like to meet. You
might, for example, ask to meet a person from
the client’s company or industry. The point
is to ask for a referral to someone you believe
would be immediately helpful to you.
When
you pop the referral question, you should be candid
about why you want an introduction, and discuss
how you plan to follow up. By clarifying your
intentions, the client will have ample information
to give you a ringing endorsement, and the prospective
client will know whether or not to take your call.
Dump
the Name Game
In
many industries, for instance, insurance, real
estate, or financial services, asking for a list
of referrals from clients is a common and useful
practice. It’s tempting to apply those referral
techniques to the consulting business. But many
consultants come up dry when they do that.
To
harness the power of referrals, strive for quality,
not quantity. You’ll spend less time, money,
and effort when you chase a short list of qualified
opportunities, instead of a long list of maybes.
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