The best sources for referrals

by Cornelius Harmon

In a highly competitive industry such as software sales, finding quality prospects is one

of the biggest challenges that professionals face. This has become even more complicated over

the past few years due to fewer in-person events, and thus, fewer chances to network, meet

potential clients, and in-person opportunities to demonstrate value. While research and sales

intelligence tools are two of the most common tactics used in finding your next great client,

referrals are often a quicker and more effective method to use.

HubSpot reported that in 2022, social media was the most effective channel for acquiring

new customers, and was also one of the most effective tools to use when generating referrals for

great leads. Leveraging a network of friends, past connections, and colleagues within similar

industries often simplifies the process of finding leads that are more likely to become clients.

This is because great referrals aren’t going to come from a random person or one phone call,

but rather those that are familiar with a sales team and their company as a whole. Those who

have witnessed a sales team and company’s capabilities firsthand are far more likely to refer

potential clients because they have evidence of their ability to execute.

That is why another great source of quality referrals come from current and past clients.

Past clients who have had great experiences are almost always willing to make the extra effort

to find potential leads after a positive customer experience from start to finish. Current clients

are a great resource as well, provided their experience is positive; however, it is important to

delight customers before asking for a referral.

Finally, when determining the best approach for obtaining referrals, it’s important to

remember that the process is nonlinear. What goes around comes around! The willingness to

refer leads to friends and colleagues that might be more suited for their expertise increases the

chances that those same contacts will return the favor in the future. There are many different

approaches to obtaining referrals, but the impact they will have on the quality of leads and the

success of a sales pipeline cannot be overstated.