How much do referrals impact your sales process?

Some very smart people have responded. As the answers roll in, we’ll post the best answers with links back your websites here:
“Referrals are everything. If you are a sales person, always ask for referrals, whether you get that one particular sale or not. In my opinion, the value of referrals in a sales process goes up in direct proportion to the risk/cost/complexity of the product or service being sold. The riskier/costlier/more complex the product or service, the more a buyer will rely upon referrals to help them make decisions… and therefore the more you as a sales professional must focus on generating - AND EARNING - these referrals.” - Mark Seghers, CEO, ASK Insurance Consulting, LLC (http://www.askinsuranceconsulting.com)
“Your referrals are the show of your quality. They are the ones that really build your business.”
“I think referrals do work but they work better as part of an official referral program. I like to create a program that is mutually beneficial so it gives more incentive for people to give the referrals. They are much more willing to help you out if they get something in return. It also makes the process a lot smoother. Let’s say, for example, you’re selling technical services and you feel a little awkard asking for a referral from a particular client because things didn’t go 100% according to plan,(as things often do in any industry) - a few glitches in installation or whatever…..even if everything else went well this customer may or may not be willing to give you a referral. BUT if you have a program in place that can he / she can benefit from then that’s a different story. (This is a customer referral program I’m speaking of). There are also agent referral programs, which can REALLY be beneficial, if established and run properly. And depending on how the company wants to set it up, a customer can also be an agent.”

Agents Do The Math On The Value of Referrals

Inexpensive online rewards programs help agents improve CLV ReferNow.com, the leading web-based customer and referral rewards program, announced a new program that helps insurance agents increase Customer Lifetime Value (CLV).Customer Lifetime Value (CLV) projects the value of a customer over the entire history of that customer’s relationship with a company. Agents that measure CLV generally place emphasis on long-term customer satisfaction, rather than on maximizing short-term sales. ReferNow.com helps health, auto and life insurance agents leverage their relationships with existing customers and increase CLV by offering rewards for new customer referrals. Referrals are my bread and butter, said Bill Levin, co-founder and president of www.HealthInsurancePricing.com an online portal that allows consumers to price various health plans. “I see so many agents spending thousands of dollars on new customer acquisition this approach is becoming less and less effective. The best way to grow your business in the long-term is by mining your existing customer base for referrals. One of the easiest things you can do to rapidly increase the value of every customer you worked so hard to acquire. Agents who use ReferNow.com and actively conduct a referral marketing campaign will inprove CLV, lower advertising costs and increase the number of referrals they receive. Whether you are an independent agent or a marketing coordinator for a larger agency, asking for referrals from your existing customers can quickly build your business. It is the best way to increase the CLV of every customer. Plus, at $49.95/month, ReferNow.com quickly pays for itself.

About ReferNow

ReferNow offers an online referral rewards and marketing tool that motivates your customers to talk about and recommend your business from day one! ReferNow.com has helped business owners and sales people increase their referral business by as much as 500 percent. ReferNow.com is available for a no-risk 30 day trial from the company’s website at http://www.refernow.com.