When I analyze with my clients the key lead sources that most of their business comes from; the top three common responses are: past clients, sphere of Influence and referrals. Most referrals come from past/current clients and sphere.
I then ask the following the questions to my clients:
1- “Would you say you have a referral base business or do you receive referrals quite frequently?” Most say yes!
2- “How often do you contact your sphere/past clients and ask them for a referral?” Most say seldom or never.
3- “If you were told that you were losing more business than you were taking in; would you be willing to make the necessary changes to stop that from continuing?” Most say they would.
We can get a false sense of security when referrals trickle in that we are getting all the business we can or should be. However, if referrals are coming to us despite our lack of intentionality, there are more sales going to our competitor than we realize.
Let me explain the 20-30-50 rule which states:
- 20% of your sphere and past clients will repeat/refer if you do not follow up but did serve them well in the transaction.
- 30% won’t do business with you no matter what you do. You may get real aggressive and intentional after reading this and still a large minority will never do business again or recommend you.
- 50% will start sending business to you if you create front of mind awareness.
You see, with little or no intentional conversations with your sphere/clients asking for referrals there is more business (50%) slowly eroding away to your competition than is staying loyal (20%) to you. If this is the case in your business, that concerns me! Does that concern you?
If it does, Contact Us today and see how one of our coaches can help you.