Last week we spent a few paragraphs in an overview of the differences between Referral Tactics and Referral Strategies.  While both of these means of generating new clients – and new business – work for you, there are definite benefits from either/both of these methods that deserve a closer look.  Following is a listing of each of those tactics for you to compare:

Referral Tactic

• Elicits a simple action such as giving a name
• Targets potential referrals as a general group
• Action-oriented
• Reflex action, done quickly
• Is usually added to the end of another meeting to create a limited referral opportunity
• Used routinely in selling, servicing, and social situations – no qualification
• Seeks personal benefits only
• Does not consider obstacles
• Used to get referrals
• Consists of one action — most often a script to ask for referrals that can sound somewhat “canned”
• Can create a sales orientation and risk your relationships

Referral Strategy

• Elicits a series of actions to find and introduce prospects effectively
• Targets one specific referrer at a time
• Results-oriented
• Requires creative thinking and is accomplished over time
• Defines a challenging referral opportunity that has its own schedule of events
• Used for top referral opportunities only
• Seeks on-going benefits for the referrer and the prospects they refer in addition to personal benefits
• Focuses on preventing obstacles and solving problems that do occur
• Used to develop referral relationships
• Consists of developing a structure for gathering referrals
  May include several actions including research, qualifying, brain storming benefits, providing benefits, planting seeds, preparing materials, meetings, scripting communication (as determined by the plan), follow-up, etc.
• Designed to enhance your relationships and create a quality orientation

Clearly, there is a major difference in the goals, processes, and results of each of those methods of gleaning new clients through referrals.  With Referral Tactics, you find yourself in a situation where you can begin a process that is, in its own way, similar to a cold call.  But, if you look at Referral Strategies, you will find that the process is more about building a relationship that will bring both you and the prospect benefits.  The key thing is to remember that relationships built over time are built on trust and acceptance.  These kinds of relationships are the ones that bring overall the best, most long lasting and most beneficial results in any sales situation.

Next week, we’ll discuss the steps you take in creating a Strategy in creating a strong referral relationship.

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