40 times more likely.
A high-quality prospect is more than 40 times more likely to buy than a cold-called prospect.
Furthermore, sales people who actively seek and exploit referrals earn 4 to 5 times more than salespeople who don't.
While it seems like common sense to focus on more qualified client opportunities, surprisingly fewer than 30% of salespeople ask for referrals - the #1 source for good business.
There are many reasons that sales people seem to spend more time chasing low probability deals and RFP's instead of driving referrals.
The most common mistake is that sales people do not know how to effectively ask for a referral. Strange, but true. When we work with sales organizations, typically no more than 20% of the sales force can display the skills required to earn a referral. They think they can, but time and time again, they prove that they are missing some key ingredients.
This ineffective approach combined with a reluctance to ask until everything is "right," an unclear value proposition, fuzzy target client profiles, and minimal accountability to a referral process doom most sales organizations. The result - bad forecasting and pipelines with low closure rates.
When done right, our clients report that referrals allow them to close more than 50% of their pipeline and get meetings at the level that counts.
If you sell professional services, a referral strategy should be at the top of your business development list.
Learn more about closing a higher percent of your pipeline...
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
