In the last few weeks, we wrote about invisible referrals—interest in your services that you either receive and attribute to the wrong source, or aren’t getting at all because you are not equipped to support the high expectations set by the referral.
In this article, we explore the traditional referral. This is the kind that happens when a satisfied client tells someone else about your firm, usually after being asked for a recommendation. It can also happen when a peer, colleague, or strategic partner (say, a PE firm, accounting firm or industry association you are affiliated with) is asked.
If yours is like most professional services firms, you get a lot of these referrals. They may even be your primary source of new business.
But here’s something you may not know. On average, most firms only hear from 2 out of every 10 referrals.
Whoa! That’s an 80% whiff rate. You wouldn’t last long in the major leagues if that were your batting average.
What’s going on here?
There are multiple reasons referrals fail to reach out to you. And almost all of them are the result of indirect signals a prospect receives. For instance, the very first step the vast majority of prospects take once they’ve been referred is to visit that firm’s website. The signals they receive from this experience can be positive (“Yes, these folks look promising!”) or negative (“I’m disappointed. They don’t look like a good fit.”).
Clearly, most referrals are getting the latter signals.
While your website is usually the culprit, there can be other other reasons, as well.
Here are five common reasons referrals go unfulfilled—and how to address each problem.
1. You don’t appear to offer the services they were looking for.
This is the number one reason a referral goes awry. A person gets to your website and can’t find the service or solution they need. It may be there, but difficult to locate. Or it may be written in a way that is vague, confusing or difficult to understand. Or it’s not there at all because you haven’t updated that web page in five years.
How to fix it: Make sure your website navigation—especially in the services section—is easy to use and clearly labeled. Also be sure to describe your services in plain language, avoiding insider jargon as much as possible. Oh, and keep your services up to date!
2. You are too salesy.
Nobody likes to be up-sold. But many websites—and some business development professionals—push a solution without first making clear that they are here to help.
How to fix it: Clearly communicate that you listen, are flexible and genuinely want to be part of their success story. Do this by showcasing messaging around the problem your clients are trying to solve rather than messaging around your great people or proprietary process.
3. Your website is _____ [outdated, unimpressive, confusing, etc.].
If you haven’t gotten the memo yet, your website is the most important marketing and business development tool available to you. You only have one chance to make a great first impression, and when it comes to referrals, this is it. Don’t blow it.
How to fix it: Redesign your website. Use a reputable agency that knows your industry. This is not the place to cut corners.
See also: A Website Design Process that Works: How to Get the Professional Services Website You Want
4. You look and sound the same as everyone else.
Buyers don’t have it easy. When they are shopping for a service that might cost them tens or hundreds of thousands—even millions—of dollars, they can’t afford to choose unwisely. They are looking for a firm that stands above the rest. If your website and messaging look and sound like dozens of other firms in your category, you aren’t going to make a statement. Or make the cut.
How to fix it: Make sure your brand, website and messaging convey a strong, differentiated message. This isn’t always an easy task. If you aren’t sure how you are different or how to present your firm as highly credible and desirable, you may need to bring in experts to guide you.
5. They’ve never heard of you.
Hiring an unknown firm can feel risky. A referral is far more likely to reach out if your name is familiar. Think of it as a second opinion—a critical confirmation that your firm is a legitimate option.
How to fix it: The problem here is lack of visibility. The majority of small and mid-size professional services firms suffer from this challenge. You can tackle the visibility problem from several angles. First, make key experts in your organization more visible. Individual experts can usually achieve greater reach and engagement more easily than a “faceless” firm. They also allow your buyers to experience your expertise firsthand, giving you a tremendous advantage against other firms. You can also invest in advertising—both digital and traditional—and sponsorships to build brand awareness. The more people see your name and logo, the more likely they are to recognize you. And the more people recognize you, the more likely they are to consider you a trustworthy option.
Are you getting all the referral love you deserve? Then why not set your firm up for success?
