Measuring Success – Referrals and Closed Business

As we refine our systems and procedures to ensure members get the best out of BNI a query has come up from members regarding Referrals and Closed Business – the query was in regards specifically to internal referrals.

Firstly, we all know BNI referrals are qualified, that is, a person you know has a need for a service and you have told that person all about one of your trusted fellow BNI colleagues who provides that service and suggested they should connect with them; therefore when your fellow BNI colleague rings that person they are awaiting their call and know who they are.  This is what we refer to as an ‘External Referral’ and what we are all ultimately looking for.

Our ‘Internal Referrals’ (when we refer ourselves to a fellow colleague) are also important, but how they are recorded traditionally (by some chapters) has been misleading, which also misleads how successful we think our chapter is.

Traditionally some chapters have allowed members to give internal referrals to the same member every time they need the service of that member, for example, if I need printing and refer myself to the printer, theoretically I am now their client and that is the referral given, however, many record a referral every time they need printing done.

Previously we have not had a way of recording how much business is being generated thus this practice has taken over. If you really think about it, if you were to treat the internal referral the same as an external referral you would only be referring yourself to that member once and then you are their client.

But how then, do you show you are continuing to assist that member grow their business by continuing to give them work? This is where ‘Closed Business’ comes in and is a much truer way of recording the business that is generated within the chapter and the success of the chapter. Recording an internal referral every time you need repeat work also stops you, probably without you realising it, from being really active in finding members referrals. Why – because you think ‘it’s okay I have a referral this week’ and this stops you from truly networking and making the most out of BNI. When we record closed business we can see who is giving and the amount they give.

So to judge how successful your chapter is, closed business becomes more important than the number of referrals given, holds you more accountable for giving quality referrals, and finding external referrals.

If you have been recording repeat business you may find now that your referral rate will go down however, your closed business will go up and the quality of referrals improve dramatically.

And finally, just to dispel a myth a chapter has never been measured how successful it is on how many referrals it gives; we look at dances, visitors, attendance, external vs internal referrals and now thank you for closed business.

Happy referring!