Referral Programs

How to make your customers work for you.

Your current customers are you biggest asset to a profitable future.

Referrals are the most powerful form of marketing that you can use and it is also the least expensive. It takes 80% more time and money to get a new cold customer than one that was referred.

Starting and using a referral program can have the largest impact in your marketing program than any other strategy or investment.

With the advancement of social media and instant communication, word-of-mouth referral marketing has become even more important because your customers don’t just tell a few people about your service good or bad, they can often tell hundreds if not thousands.

How to startThe easiest way to get a referral is to ask for it!

For what ever reason most contractors don’t bother with referrals because they think they will be turned down, the customer will get mad or feel bothered or they just do not feel comfortable asking. They just assume happy clients will spread the good word. Well we all know what assuming gets you.

Coming from the customers point of view they have their own concerns and none of them have anything to do with helping you grow your business and finding you more customers.

But is you have done good work and the customer is satisfied with the results that is when it is the best time to ask them to help you.

Make a planDoing something repeatedly becomes habit and not so scary so why not include asking for a referral as part of your normal closing routine?

For instance: "I'm really glad that you're pleased with my work. I'd really appreciate it if you'd pass my name along to anyone else you know who would be interested in _____________ (what you do). May I leave these extra business cards with you?"

Here you are not asking them to give you anything at all, no names, no e-mails just to help you out to spread the word about your services. This is also the best time to ask for a testimonial either verbal or on video.

This may not bring you guaranteed, the highest or fastest results but you have asked, they have said yes and you could get a potential new customer.

But there are better ways to increase your odds of success.

Give an incentive Everyone appreciates being appreciated and what better way then with a small gift.

To increase the likelihood of your cards being given out, you can place a sticker on the back for your customer to put their name and let them know when the new customer calls to book service and gives the name on the card that they will receive a thank you.

This thank you can come in many forms; a discount on a future service, a small gift card to a store or restaurant, or even a donation to a charity of their choice from a list you provide.

The truth is when asked most customers that gave out referrals did it because they liked the person that did the work for them not for the

monetary reward but it doesn’t hurt.

No referrals, Why? I hear from some people that they ask for referrals or have a program but are either turned down or don’t get enough new referrals coming in.

That is a big red flag that needs to be addressed as to why.

There is obviously something wrong even if the customer is not telling you at the time. But there are ways to find out.

Execute customer surveys. Ask point blank if there was something they were not happy about with your services. Some customers that have a complaint feel it was such a little thing that they did not want to bring it up, but it did bother them and therefore less likely to recommend you.

It is up to you to get a complaint up to the surface so you can deal with it. Handle every issue 110 percent and the customer will now be

glowing not only about your work but how nicely and easily you addressed their small dissatisfaction.

Go through your customer list and keep track of how many referrals they give you. If you have one that gives you repeat business but no referral business you need to ask harder by giving them ways to help them give you referrals.

Send out quarterly reminders of your referral program, ask for them to fill out a referral form, ask them for a written testimonial that you can use as their referral statement.

If your average job profit is $150 and you have 100 customers that have never given you a referral that is $15,000 you can’t bank.

Give your customers something to rave about.

At every job try to do one thing above an beyond the average.

Your customers will notice and will reward you with referrals.

Just remember to ask for them!