How to Get Powerful Referrals

What is Business Development

LinkedIn gurus argue Outbound vs Inbound

But miss the most powerful growth engine of all...

Referrals

Here are the stats for Outbound and Inbound...

• Outbound Cold Calling = 6%
• Inbound Warm Calling = 12%

These are conversion rates from 1st contact to 1st meeting.

Now, hold onto your hats...here are the stats for Referrals...

• Referalls = 50%

That's from 1st contact to Closed/Won!!!!

But wait, there's more...

Andrew Z. Brown's new book quotes these eye-popping stats:

• 59% of referrals have higher LTV
• 69% of companies say referrals have shorter sales cycles
• 71% more likely to close than other types of leads
• 74% of companies say it's the least expensive

Okay, so where do these insanely Hot Leads come from?

1. Partners
Your business partners leverage their trusting relationship with the prospect to educate and pre-qualify the prospect

2. Existing Customers
Word of Mouth from your raving fans drives their friends to your door

3. Employees
Only specialists should be in Sales but, everyone in your company is in BD, encourage them to spot opportunities...you're already paying their salaries.

4. Competitors
Wait, what? Some of your competimates may be unable or unwilling to continue serving the customer, and they send the lead to your corporation (called Customer Pruning)

5. Prospects
How many times did a prospect tell you they like your product but, it's not the right time, don't have the money,...why not ask for a referral?

6. Self-Referral
These are hot inbound leads...not tire kicker white paper subscribers
They did a lot of research often never reading your white paper
They did a lot of Dark Funnel research
They don't want "discovery" or your "demo"
They just need a couple more answers before they Declare Intent to buy

So, by now, you know Referrals crush Inbound and Outbound.

But, here's the crazy thing...

47% of companies take 24+ hours or never respond to these hot leads!

Responding to hot leads in an hour =

7X more likely to have a successful discussion with decision makers

60X more successful than those taking more than 24 hours to respond to hot leads

So, why are companies dropping the ball on Hot Leads?

See the HBR article showing results from a 2011 study for answers or...

maybe it's because they're too busy fighting over Outbound vs Inbound

Want to get a lot of referrals?

Hire a Business Developer.

It's what we do.

Tony Gray, BDP
Author of the Business Development Body of Knowledge