How to ask for referrals: a referral script that works by phone

Why are referrals your best source of new business?

A phone call to a happy customer is the ideal way to find new prospects. A referred prospect already has a reason to trust you, because someone they respect has vouched for you. The call is warmer, the conversation is easier and the sale usually comes faster.

Most of Jenny Cartwright's own business comes from referrals. Yet many salespeople never ask once the sale is made, and the goodwill they worked so hard to earn simply fades. Jenny's advice is to work with every buyer as though that person represents 1,000 referrals. Treat customers that way and asking feels natural, because you have given them something worth talking about.

What stops salespeople asking for referrals?

Usually it is embarrassment. You worry that asking looks needy, or that you will put your customer on the spot if they cannot think of anyone. Like every other step of a telesales call, though, asking for a referral has a process. Once you know it, the awkwardness goes and the confidence arrives.

The classic mistake is the vague question: "Do you know anyone else who might want to buy what you've just bought?" Asked that way, most people's minds go blank and they cannot think of a single person. The fix is to be specific. Give them a picture of who to think about, and names start to come.

When is the best time to ask for a referral?

The best moment is a check-in call one to two weeks after the customer buys. You ring to make sure they are happy with their purchase or your service. They are impressed that you bothered to call, and they are usually only too pleased to help you in return.

• Only ask once you have established that the customer is genuinely happy. If they are not, fix the problem first and ask another time.
• Ask straight after a compliment. When a customer says you have saved them time or money, that is your cue.
• Ask when you have just solved a problem for them, while the relief is fresh.
• Ask long-standing customers at a review call, when you have been talking about the results they have had.

Five referral questions that get names, not blank looks

These questions come from Jenny's own training. Each one narrows the field so the customer can picture a real person. Put the benefit your product delivered into the question wherever you can.

1. "Who else do you know who would like to save the same amount you've saved with us?" (Swap in your own benefit: more time, fewer breakdowns, more appointments.)
2. "If someone else in your position were buying this, who would that person be?"
3. "May I ask you a favour? Could you think of four or five people who sell to you who would be good prospects for us?"
4. "What do you enjoy doing outside work?" Then: "Can you think of one person in your team or group who might be interested in what you've just bought?"
5. "Who else could you help by telling them about us?"

Pick one or two that suit your customer and your product. Then stop talking and let them think. A few seconds of silence feels long to you, but it is exactly what your customer needs to come up with a name. For more phrasing ideas, see words for sales conversations.

A referral script for your check-in call

Notice the order. Confirm they are happy, put a number on the benefit, then ask a specific question. Finally, ask whether they will introduce you or whether you may use their name. Jenny always aims for the introduction first, but read how the conversation is going before you push for it.

An introduction has another advantage. If the person you have been referred to uses a private number, it may be on the Do Not Call Register, and a friend's recommendation is not their consent. When they agree to hear from you, you can call with confidence. Jenny explains the rules in telemarketing rules in Australia.

Who else can refer you besides customers?

Happy customers are the obvious source, but they are not the only one. Plenty of people already know your ideal prospects and would be glad to connect you, if only you asked.

• Your own suppliers. Your printer, accountant or IT provider deals with dozens of businesses every week. Jenny reckons each one must know at least 10 people suitable for your business.
• Complementary businesses. Firms that sell different products to the same customers can refer you, and you can refer them in return.
• Prospects who said no. Someone who liked you but did not need your service right now may still know someone who does.
• Your LinkedIn connections. Ask a mutual connection for a short introduction message. It is quicker than a cold approach and far warmer.

Use the same rules as with customers. Be specific about who you are looking for, make it easy to say yes, and always report back. Once you have a name, the techniques in how to make an appointment will help you turn that warm introduction into a meeting.

What to do after you get a referral

Call the new prospect promptly, while the recommendation is fresh in everyone's mind. Open with your customer's name, because that is what earns you the first 30 seconds. The techniques in how to build rapport on the phone will carry you from there.

Some businesses add a small thank-you, such as an introductory voucher for the new prospect sent "with the compliments of" your customer. It makes the introduction feel like a gift rather than a sales lead.

Most importantly, always get back to the customer who referred you. Ring them, or send a short note like this one adapted from Jenny's own template:

"Dear Chris, thank you for suggesting to Dana that she talk to me about her admin. We met on Tuesday and she starts next week. Dana mentioned how enthusiastic you were, and I really appreciate your confidence in me. Thank you again for thinking of me."

Jenny covers referrals among more than 200 phone sales strategies in her book Don't Get Hung Up!, and you can find more ways to fill your pipeline in how to find prospects to call.