Referral selling is powerful. Referral selling is simply asking your current customers to refer your product to another company or person. You leverage the trust you’ve built with your customer and your customer’s trust with the other company to open up a virtual sales conversation.
Here are nine referral selling statistics from various sources that are bound to surprise you with their effectiveness.
1 – The effectiveness of referral marketing and initiatives – Referral’s account for 65 percent of new business. (Source: Entrepreneur)
2 – 84 percent of B2B decision-makers begin their purchasing process with a reference. (Source: Sasquatch)
3 – Consumers trust recommendations from people they know 92% of the time. (Source: Annex Cloud)
4 – In the United States, there are 3.3 billion brand references in 2.4 billion brand-related discussions per day. (From Adweek)
5 – Recommended consumers have an 18% lower turnover rate than customers acquired via other marketing channels. (From Wharton University)
6 – Word-of-mouth is the primary motivator for 74% of customers when making a purchasing choice. (Source: Google Think)
7 – Recommended clients may boost your earnings by up to 16%. (From the Harvard Business Review)
8 – Referrals increase conversion rates in B2B businesses by 70%. (Source: Extole)
9 – More than half of businesses using a referral programme consider their sales to be “very successful.” (Source: Heinz Marketing)
These statistics clearly show that Referral Selling is one of the most powerful sales techniques in your sales Armory! If referral selling is used the right way, it can boost your sales figures up to 3 times.
Now, let’s look at how we can combine this super-power of Referral selling into our video prospecting to create a uniquely powerful tool to build a strong sales funnel. Connecting via a referral is a sure-shot method to establish trust, and therefore it may seem like a simple pitch. However, you still have some work to perform before you can make the video.
Follow these simple steps to get the most out of it.
1 – Hand-pick customers with whom you have established trust and are comfortable recommending your products/services to others.
2 – Seek their permission to use their customer experience as a reference with other prospective clients. A small “referral-note” detailing their experience can be an excellent asset for you.
3 – Research and check out their LinkedIn profile and compile a list of, say 5-10 exciting people whom they are connected with and who look like a good fit as your prospective customer. Using video on LinkedIn is one great way to connect.
4 – Send them friend requests and wait for being connected first.
5- Create video personalization and send to these prospective customers referring your customer with whom both, you and your prospective customer, are connected
The likelihood of such a prospective customer giving you an appointment is extremely high since you have a common thread binding you. The trust is natural, and thus you closing a sales deal is relatively high. Video prospecting helps you connect on a human level and enhances your chances of building trust at a deeper, more human level in a much shorter time period.
So, what are you people waiting for! Be bold, call your most trusted customers and begin with the process of Referral selling. Happy selling, People!