Why Cross Selling Doesn’t
Occur More Often
Part Two
By Adam
Radzik
Consultant to Professional Firms
There is a common belief that partners in a firm should, of course, refer other partners in that firm. Why then does this not happen more often? In my first article in this series, I wrote about inadequate knowledge. We simply don’t know enough about what other people are doing. But there are more obstacles than just lack of knowledge.
 Let’s play this out with a fictional example. Steve Sands has an important client whose name is Apex Chemical. Most of the time, Steve is not going to refer Tom Laughton, another service provider from his firm, just because he is from the same firm. Why not? What if Tom makes a mistake? What if Tom excessively bills Apex? What if Tom fails to deal with Apex on a timely basis because he gives priority to his own clients? Steve will often choose not to take that risk. It doesn’t even matter if Steve is financially rewarded for cross-selling. The firm could never give Steve enough money to make it worth his while to risk his relationship with his client by referring him or her to someone he does not know.
We need to go back to the basics of selling. People do not buy unless they perceive that they can trust the seller. The bigger the purchase, the bigger the risk, and the greater the need for trust. The notion that one service provider in a firm will automatically trust another service provider because he or she is a member of the same firm is simply not correct. People have standards. You have to meet those standards or the “sale” will not occur.
What that means is that each service provider must prove its worth before a referral will result. Yes, even in the same firm! All the hurdles and obstacles that exist in making a sale to the outside target also exist within the firm itself. All service providers need to demonstrate that they know their stuff, that they will solve the client’s problem in a reasonable manner, that they will keep the referral source informed, and that they will not attempt to hijack the relationship.
How is this accomplished? An internal marketing program needs to be created. Specific targets within the firm need to be identified as targets for cross-selling efforts. Training needs to be provided to those seeking referrals so they know how to present themselves to other partners. Ultimately, they will need to be able to answer one question: “Why should I refer you to my client?”
Unfortunately, in my work as a s ales coach, I frequently hear, “I’m not referring my client to those guys in IP. I know nothing about them. I’ve got a firm on the outside that I know won’t ruin my relationship with the client!” Trust is not an automatic commodity. It must be earned and, once earned, treated with the utmost care if it is to be kept.
Read Part Three of Why Cross Selling Doesn’t Occur More Often in upcoming issues of Marketing and Management for Professionals.
Comedy Corner
An elderly gentleman had serious hearing problems for a number of years.
He went to the doctor, and the doctor was able to have him fitted for a set of hearing aids that allowed the gentleman to hear perfectly.
The elderly gentleman went back a month later and the doctor said, “Your family must be really pleased that you can hear again.”
The gentleman replied, “Oh, I haven’t told my family yet. I just sit around and listen to their conversations. I’ve changed my will three times!”
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