As I discussed in an earlier post, one of the most common questions I get from clients is how to get more referrals. One answer: Set up a referral rewards program. But what happens after you’ve done so?

Once again, to gain some insight, I sat down with an expert in IT services sales and marketing: Kendra Lee of KLA Group, a Denver firm that offers consulting and training services.

According to Kendra, once you’ve set up a referral rewards program, the next step is to get proactive. In other words, you have to make asking for referrals a part of your sales and account management process. That way you aren’t waiting for clients to think of you to offer a referral.

Every staff member who works with clients can be a part of the referral request process. But to get staff involved, you’ll need to the two things that might hold them back: awareness of how important referrals are, and fear of rejection. So, Kendra suggests you let your staff know that referrals can make or break your business-then help them overcome rejection with these steps.

1. Create a profile of who to ask for referrals. Target clients with whom you’re likely to succeed by creating a profile of the characteristics possessed by the ideal client (such as those who clearly appreciate your recommendations).
2. Identify standard contact points. Once you know who to ask, you’ll need to define when to ask. Determine where in your sales and account management processes clients are most happy, and make it part of the process to request referrals then.
3. Consider other contact points. In addition to asking for referrals at the standard contact points, you’ll want to be sure you take advantage of other opportunities as they arise-for example, at quarterly business reviews or project closeout meetings.
4. Provide the words, then train people to use them. The next step is to get your team asking for referrals. To do so, teach staff members how to frame their referral requests, including how to transition from the topic at hand to the request.
5. Measure referrals. Finally, track your success by creating a lead source code in your CRM. Doing so will illustrate you what works and what doesn’t, and show your staff the impact their efforts are having.

These steps are really helpful, and once again I thank Kendra for her input. But there’s plenty more where these steps came from: I encourage you to check out Kendra’s web site.

One of the most common questions I get from clients centers around referrals-how to get more referrals.

That’s not surprising: Referrals are critical to your business, so you’ll want to maximize the number you receive.

To gain some insight, I recently took some time to connect with one of the people I respect most when it comes to IT services sales and marketing: Kendra Lee of KLA Group, a Denver, Colorado firm that offers sales consulting and training services to IT firms to grow their client base.

Over the years, KLA Group has helped hundreds of IT service provides expand their businesses-in part by using referral rewards program.

To set up a good referral rewards program, Kendra told me you’ll need to think about the best way encourage colleagues and clients to send a good referral your way. That will differ from firm to firm, but Kendra offered three comments on common approaches.

1. Paying for referrals with cash.
This isn’t the best choice for a number of reasons, says Kendra-people forget money the quickest, and offering it can create the impression of bribery.

2. Pay for referrals with gifts.
This is a better idea, says Kendra-particularly for your clients’ employees, the people your team works with daily. That’s because a gift keeps you in the recipient’s mind with a memorable experience (such as a nice dinner) or an item used every day (such as a web digital camera for Skype or iPod). Moreover, it can have the same value as cash, but doesn’t have the same negative connotation.

3. Pay for referrals with services.
This may be the best option says Kendra, because your ownership of the service allows you to offer greater value for the money. But there are some no-nos when it comes to paying for referrals with services. Don’t discount a service the client already has and is paying for, such as consulting time or a monthly service fee. Instead, use the opportunity to introduce a new service to an existing client. “Business owners are always looking for things to improve their business,” Kendra says.

Finally, Kendra reminded me to tell you to be sure to follow the gift policies set up by your clients or any other regulatory bodies. In fact, it’s a good idea to have your own gift policy detailed clearly on your web site to increase transparency.

These are great tips, and I thank Kendra for them. But there’s plenty more where they came from: I encourage you to check out Kendra’s web site.

You already know that a referral is the easiest sale to close. If you’re doing your referral groundwork right you should be thinking about referrals from both your existing IT services or Managed Services Clients and your network of Influencers.

In both cases you need a system that keeps you “top of mind” with your referral sources and reminds them that sending a prospect your way is a win-win-win for everyone.

If you don’t have a CRM or other system to manage your referral network – get one.

5 Quick Steps to More Referrals

Client Referrals

• Have a program. It doesn’t have to be much.  Try gifts, discounts, and other incentives.
• Communicate your program. Your monthly company newsletter, website, and other communication should have a regular spot to feature your referrals program.
• Ask. Don’t be bashful. It’s OK to ask for suggestions on referrals just like it’s OK to ask for the order.

Influencer Referrals

1. Grow your list.  Make a list of your circle of influence – who are the professional colleagues and others you know who can be referral sources?
2. Touch it consistently. Have a system to communicate to these influencers on a consistent basis. Even if you see them at regular functions such as Rotary, you should have a professional communication reminding them of the value you are bringing clients.
   • IDEA – in the last issue of Pronto Checklist I talked about the importance of doing regular press releases.  Sending a monthly press release to your circle of influence would be a great way to stay top of mind – and leverage the PR.

In both cases be sure to invest in the relationship. Referrals are a two-way street. Be proactive yourself in sending business their way – and don’t be shy to let them know you did!  What goes around comes around…

Sales is hard work – and keeping a healthy pipeline of prospects is even harder. Take the action right now to get your referrals house in order and your MSP Marketing program will be well rewarded.