What’s Your TRUST FACTOR?
People who know and like you are likely to trust you. Trust is evidence you have relationships that allow access to the contact networks of others and that allows you to generate referrals for your business. And, as you know, more referrals = more revenues, profits and owner equity.
Why is TRUST Important?
To build business, you want referrals. The more people who allow you to leverage their TRUST of you, through their endorsement of you to their network contacts, the more referrals you’ll see from it.
Why Relationships Matter
Consider this . . . the average person has a contact network or sphere of influence with 200 people — more or less. So building a solid relationship with people whose contacts are most likely to 1) understand, 2) value, 3) desire and 4) afford what you do, the more opportunities for referrals you’ll be generating.
One of the types of relationships you’ll want to establish and maintain is with someone who satisfies the following characteristics:
1. they are highly regarded and trusted by people in their contact network
2. they know or have clients who look like your ‘best clients,
3. they know, like and trust you . . . i.e. ‘raving fan’ material, and,
4. they are willing to introduce you to select members of their network
If you will build a strong relationship with 25 people who serve the same kind of client as you do — with complementary vs. competitive services or products — then you should be seeing both referrals (inbound leads from receptive individuals) and Preferrals (outbound introductions to qualified individuals).
The numbers of Reality
Let’s say you have 25 Strategic Alliances. On a quarterly basis, that means you could be meeting (I prefer lunch) with 2 of your alliances each week. Now, because they already know, like and trust you AND you’ve been able to give as well as receive . . . they’re coming to lunch with the full understanding that this is a time to exchange introductions to people in their network who share characteristics in common with people who are your ‘Ideal Client’ and you’re coming to lunch to do the same thing for them.
Assume you manage to collect, on average, 5 names of people who may, sooner or later, be likely to need the services (and, outcomes!) you offer. That’s ten (10) preferred introductions (Preferrals) a week . . . 40 or so a month. So what happens when you follow up?
Roughly 1/3 will say something that means there’s no future — e.g. “Oh, did I tell you my wife is a CPA and does all our tax work?”. See, it’s over before it gets going.
Another 1/3 will express interest in what you do but have no current need for it. If they invite you to ‘stay in touch’, you have a ‘future opportunity’ you can cultivate, over time, until one of either ‘coughs up’ or ‘gives up’.
Finally, 1/3 will be interested and receptive to some kind of immediate ‘next step’ . . . a meeting to get better acquainted, an agreement to take your online survey and schedule a debriefing call or meeting, etc.
The REAL Payoff — “Life Gets Much Better!”
Over time, as you build up your database of people who share characteristics in common with your best clients, and they invite you to keep-in-touch so you can stay-in-mind should they or someone they know ever need the service/s you provide, roughly 1/3 of the people you’re cultivating . . . will come ‘up’ each month . . . for a recall to requalify to remain in your Client Cultivation System, or ‘CCS’
Say you have just 240 qualified prospects in your CCS. That means that about 80 people are due, each month, for a ‘touch base’ call. Now, because they already know you, it’s not a ‘cold call’. As they’ve invited you to stay in touch, it’s a call with ‘permission’ — so you’re not intruding. And, assuming they were qualified to be cultivated in the first place, with each subsequent call, they (or, someone they know!) are getting closer to the time when they’ll need someone who does what you do.
It’s called ‘CULTIVATION’ for a reason — just as a farmer keeps the weeds away, the insects at bay and makes the water plentiful, so too must you, as a service provider, offer the ‘gentle care and feeding’ of the relationship known as ‘client’. And if someone is not (yet) your client, keeping-in-touch on a regular basis and in a client-centric manner is one of the best ways to ‘harvest’ the seeds of success you’ve planted in the past. It’s also a proven strategy to both differentiate yourself from others in your field, and build up client loyalty to you and your brand.
Relationships matter. Cultivating relationships for both current and future revenue opportunities is a wise strategy to make your business or practice generate clients (and, the revenues they suggest!) consistently and efficiently.