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Right now, there are some really big companies that have tapped into a way to bring in a tsunami of new customers to their business.
Success leaves clues, and it’s important to look at what they are doing and what you can use for your business.
I was listening to Tony Robbins speak at a business conference. He asked the crowd of 5000 business owners an important question.
“How many of you have a referral system that you track KPI’s on? Please stand.”
350 people stood up.
He then went further, asking those who were already standing…
“How many of you have 2 or more referral systems that you track KPI’s on? Remain standing.”
Only about 150 remained standing.
Out of 5000 business owners, only 150 had multiple ways to get referrals and track results. That’s just 3% of businesses.
This is the single best way to grow and double your business.
So why are so few businesses using it?
I looked at about 9 different businesses and at every revenue level, and none of them had a referral system in place.
This was proving to be a pattern, and I don’t understand why businesses aren’t using this method.
Referrals are a no-brainer because:
- Referrals have half the sales cycle length
- 125-150% more profitable than a normal deal because they are from a trusted source.
- 84% of buyers are kicking off their sales cycle with a referral
- 83% of customers are happy to provide a referral after the sale, but only 29% of sales reps are asking for referrals.
Why companies fail when trying to grow through referrals:
- They don’t know the profit pathways – you want to stack the pathways.
- They don’t have a process that is easy to collect referrals – need a super simple model. Behavior = prompt + motivation + ability.
- They don’t prepare properly. They ask general vs. specific questions, so the referrals they do get are not their ideal clients.
- They don’t know their prospect’s peaks. What are the avalanche points in the buyer’s journey. Emotion creates action. This makes most companies ask for referrals at the wrong time. Ask when they are happiest.
- They don’t leverage persuasion properly. You have to “pre-suade” to persuade. Tap into the monkey mind. If you give someone something of value, they feel the need to repay the debt. This is hard wired into human survival.