How do you get referrals?

[Little Buddy 14]

I was just wondering how you guys go about getting referral?

[PressureWashE 14]

after every job, I make it a point to ask for referrals, And I offer 15% off their next service, if they do.

[Simply Glass 14]

First I make sure the customer I’m working with is happy then I ask them to pass my name/card along to family, friends and co-workers.

[Simply Glass 14]

after every job, I make it a point to ask for referrals, And I offer 15% off their next service, if they do.

In my opinion I think doing a great job is enough payment for the customer to pass along a good word for you. I don’t give a % off or gas cards I just give them what they deserve and the referrals come rolling in.

[Little Buddy 14]

In my opinion I think doing a great job is enough payment for the customer to pass along a good word for you. I don’t give a % off or gas cards I just give them what they deserve and the referrals come rolling in.

thats what i was thinking

[PressurePros 248]

In my opinion I think doing a great job is enough payment for the customer to pass along a good word for you. I don’t give a % off or gas cards I just give them what they deserve and the referrals come rolling in.

How long have you been in business?

[big mike 14]

We offer $50 Visa gift cards for any deck / fence referral, and $25 Visa gift cards for House or roof wash referrals. No limit. It's added into my costs, so I don't really notice the money. Plus, they're only paid when we actually book a job, so it's much more cost effective than a referral service such as Service Magic, where you pay for a lead that you may, or may not get, the job. Referrals are THE BEST way to get a job.

[John Doherty 126]

It's nice to give something but not necessary, I don't unless it's a huge account.

I can't think of anyone who doesn't like to refer people to a company they've had a positive experience with.

There is one big aspect that most overlook, a lot of us assume our customers remember us, name co name etc. It's really important to get your name in front of your old customers a couple times a year, newsletter, announce seasonal service offerings, etc.

Make sure they remember who to refer!

[gutterdog 14]

In my opinion I think doing a great job is enough payment for the customer to pass along a good word for you. I don’t give a % off or gas cards I just give them what they deserve and the referrals come rolling in.

Free word of mouth is awesome. I dont understand how you get so much?

[Richard 17]

Ken

I'm just waiting to see,if, and, or when you interject !!

I'm sure I'm not the only one waiting to see your responce...

[James 624]

Referrals evolve from doing a great job to getting them from someone of more meaning or importance in relation to what needs to be done.

[Little Buddy 14]

how do you guys ask for the referrals?

[gutterdog 14]

I am going to work on a thank you letter, mailed after the job, and ask for referals, Would a hand written one be better than a printed one? Also any referal that turns into a job a visa card. Enough to buy them a nice lunch at applebees or something? A nice lunch wouldnt be considered a bribe but a thank you for the referal!

[Little Buddy 14]

i think im going to strt out by asking if i could put the before and after pictures on my website, then after the ice is broken, ask for the referral. Followed up with a thankyou card

[PressurePros 248]

I do not buy into the "do good work and the referrals will come" mantra. It holds some truth with the pitfall being that it takes a good 3-5 years to really get rolling. You can jump start that with a modest program.

I mentioned acquisition costs in another thread when determining your "gift". This is the real cost for you to get a customer. It factors in your advertising costs, estimating costs and closing rate. Certain formulas account for projected earnings over the life of a customer. I try not to make things more complicated. It costs me approximately $40 to attain a new customer. That's a static expense on every job. If a person eliminates me spending that much, my only cost is going to look at the job. This is why I give $35 as a reward for referrals.

There are some other programs I have explored through the yearrs but have not implemented due to cost. I might revive one called "Pressure Points". Instead of getting cash, a customer will accumulate points. There is a company that has a website that customers can go to and use their points for high def TV's, Ipods, appliances etc. I like this better than giving cash because now it inspires a customer even more to create leads:

"Hon we only need two, more referrals to get that 20" flat screen monitor. Who else do we know that could use pressure washing?"

If anyone falls into the trap of believing that prior to year three you will get any types of referrals just by doing good work, you may be in for a rude awakening.

Here is a summary article/review I put up about the importance of customer loyalty.

Customer Service is Worthless.. Customer Loyalty is Priceless

[MattsPristinePW 14]

Ken, that is an awesome idea with the "Pressure Points." I am going to look into starting that with my business. Thanks for the advice. This forum is great.

[Simply Glass 14]

I do not buy into the "do good work and the referrals will come" mantra. It holds some truth with the pitfall being that it takes a good 3-5 years to really get rolling. You can jump start that with a modest program.

I mentioned acquisition costs in another thread when determining your "gift". This is the real cost for you to get a customer. It factors in your advertising costs, estimating costs and closing rate. Certain formulas account for projected earnings over the life of a customer. I try not to make things more complicated. It costs me approximately $40 to attain a new customer. That's a static expense on every job. If a person eliminates me spending that much, my only cost is going to look at the job. This is why I give $35 as a reward for referrals.

There are some other programs I have explored through the yearrs but have not implemented due to cost. I might revive one called "Pressure Points". Instead of getting cash, a customer will accumulate points. There is a company that has a website that customers can go to and use their points for high def TV's, Ipods, appliances etc. I like this better than giving cash because now it inspires a customer even more to create leads:

"Hon we only need two, more referrals to get that 20" flat screen monitor. Who else do we know that could use pressure washing?"

If anyone falls into the trap of believing that prior to year three you will get any types of referrals just by doing good work, you may be in for a rude awakening.

Here is a summary article/review I put up about the importance of customer loyalty.

Customer Service is Worthless.. Customer Loyalty is Priceless

Okay then thats the way you have to do it. Thanks for sharing. Some of us just do a great job and are nice to our customers and get the referrals. Some guys have to take steroids to get big when other guys just work a little harder. Its like when you go to a resteraunt and the service and food are way above your expectations. When you leave that resteraunt, you are going to tell people about it. Not because they pay you to do it, but because it was just so damn good. So, while your wasting your energy and money by buying new customers, we will stick to our way and keep providing our customers with the quality they deserve.

[Beth n Rod 1,279]

Well Ken, I don't know where you are going with that but I will leave it alone.

That being said, in answering the initial posters question, referrals are the result of a doing a number of things right.

1. Service

2. Quality

3. Responsiveness

4. Communication

5. Completion

Now, while it may seem pretty straight forward to some, most don't get that there is more to it than what I just listed.

Anyone can go through the motions and get the paycheck at the end of a job, but it is what you do in the interim between the first meeting till the end that counts.

Asking for a referral is part of sales where one is always closing for the next sale.

Earning it is entirely another!

Cover the 5 points above and deliver each with courtesy and respect. Put in an extra little value added service (one that takes only a few minutes) and make sure the customer gets a walk around after the service is complete to make sure all has been covered and the punch-list is clear.

Instill confidence in the customer and you will get the coveted referral.

Rod!~

[gutterdog 14]

Well Ken, I don't know where you are going with that but I will leave it alone.

That being said, in answering the initial posters question, referrals are the result of a doing a number of things right.

1. Service

2. Quality

3. Responsiveness

4. Communication

5. Completion

Now, while it may seem pretty straight forward to some, most don't get that there is more to it than what I just listed.

Anyone can go through the motions and get the paycheck at the end of a job, but it is what you do in the interim between the first meeting till the end that counts.

Asking for a referral is part of sales where one is always closing for the next sale.

Earning it is entirely another!

Cover the 5 points above and deliver each with courtesy and respect. Put in an extra little value added service (one that takes only a few minutes) and make sure the customer gets a walk around after the service is complete to make sure all has been covered and the punch-list is clear.

Instill confidence in the customer and you will get the coveted referral.

Rod!~

Hey Rod!

Great weather we got right now! lol!!! I've always done good work, at the end I throw in the sidewalk for free as a surprise!!! Good service, a lil bonus at the end! I get some word of mouth from gutter cleaning and house washing. Recently a gutter clean (and testimonial) gave a word of mouth to a house wash (and testimonial). Well that was nice! Very rewarding for me! By this time next year they will forget the name?

There is inbound marketing and outbound marketing and referals.

I think once you have a happy satisfied customer use it to your advantage and something in it for the customer too?

With newsleters etc that is outbound marketing and gets expensive. On the other hand its not cold selling! The customer is already happy! Knows you as a person and the quality you provide.

If mr smith tells his friend mr jones about you he is giving good advice.

Also Mr Jones can look at Mr smiths house as evidence.

Referals Rock!!!

The thing is to persuade the customer to give the referals and hopefully Mr smith will call his buddy up and tell what a job was done... what a friendly guy you are, quality etc. before you call the customer!

Mr Smith has sold Mr Jones before you call

[James 624]

90% of my business is referrals from my past and present associations and a network of people who have herd of me.

[Ron Musgraves 240]

I was just wondering how you guys go about getting referral?

We ask ask ask ask

[PressurePros 248]

DeJay, don't take it personally. Of course you have to do good work. You can give someone a check for $1000 and if they weren't happy with the work and the experience of hiring your company, they won't refer anyone. That's why I asked you how long you have been in business (which you still did not answer). If you are getting referrals you have been in business for awhile. If you are a new guy and believe that your system will work for the majority of new business owners, you may be missing the big picture. the goal for any business is 100% referral work. It rarely works that way but hands down, referrals are the best leads. If you want to have a multi crewed company that stays busy primarily from referrals you have to be proactive. That's the only point of my post. I'm not sure why you got bothered by that.

Ron runs a very large, very busy company with a high energy sales machine and has been in business what, Ron? 20 years? He also asks for the referral. Ron do you offer rewards for referrals?

Rod went roundabout and detailed what makes a referral happen (thanks for adding that critical component.. I skipped that as I assumed it was a given) but he also mentioned that asking for the referral is part of the sales process.

Edited October 16, 2009 by PressurePros

[pressure247 14]

I like to give customers I meet face to face some extra cards at time of payment. Most of the time noone is home. Best bet is asking the customer about neighbors once you have scheduled the job. Pass out cards while on the block and do what the customer expects. Some people will work for you others will not nor should they. Be easy to find. Get there first. Be on time. Protect plants. Don't think for a minute "they won't see what you missed". Our business is tough, you have to be tougher and do more when asked, but don't let em take advantage of you. Referrals are nice when they come from other good contractors. Align your business with good people not scum bags. Don't settle for less than what you deserve and know your job! Last but most important, forcefeed your website to your community!

Edited October 17, 2009 by pressure247

[plainpainter 217]

Guys who say they get customers from referrals, I'd like to know if they actually ask each customer how they found out about them. I worked off the referral system back in the 90's - the unsolicited type of referrals. I'd say that unsolicited referrals are like 5-10% of my business now, where as it was 90% of my business 15 years ago. And even then that's if you send newsletters and reminders constantly.

Anybody who doesn't think you have to be proactive about getting referrals and offer incentive programs are simply out of their minds, or to put it more mildly harbor much cognitive dissonance. Everyone I know that is truly busy {last I checked, they aren't} are because they are dirt dirt dirt cheap. 90% of contractors in this day in age that attain business due to unsolicited referrals are dirt cheap. In richer communities where I live - folks don't even know their next door neighbor anymore - let alone talk about great pressure washers. Only folks that are on the low side of middle class talk to each other about contractors - which is no longer my customer base.

[Ron Musgraves 240]

DeJay, don't take it personally. Of course you have to do good work. You can give someone a check for $1000 and if they weren't happy with the work and the experience of hiring your company, they won't refer anyone. That's why I asked you how long you have been in business (which you still did not answer). If you are getting referrals you have been in business for awhile. If you are a new guy and believe that your system will work for the majority of new business owners, you may be missing the big picture. the goal for any business is 100% referral work. It rarely works that way but hands down, referrals are the best leads. If you want to have a multi crewed company that stays busy primarily from referrals you have to be proactive. That's the only point of my post. I'm not sure why you got bothered by that.

Ron runs a very large, very busy company with a high energy sales machine and has been in business what, Ron? 20 years? He also asks for the referral. Ron do you offer rewards for referrals?

Rod went roundabout and detailed what makes a referral happen (thanks for adding that critical component.. I skipped that as I assumed it was a given) but he also mentioned that asking for the referral is part of the sales process.

We give the rewards and thank you after the refferal is given. No tricks to get refferal here.

We might have a customer we went and extra mile for, then we just simply ask. If they do we might reward them( often a thank you does the trick)

Does anyone think to offer them refferals?

I have my sales people watch for business we can swing anyones way. I practice this and it truly is the best way.

good luck!!!

25 going into 26 and I will never stop asking and giving!!!

[Eric B 14]

Nice post Ken. I totally agree. Some things I do is, every month I send out Designed Thank-you cards to all my customers that I did work for that month. Inside the card I give them a Company Biz card Magnet. Most people that get magnets hang them on the frig. Everytime they open the frig they see your name. At least thats how I hope it works. Another thing I do is, Alot of the time I'm not on the job site. So that same night, I'll call the customers the jobs were done for that day and ask them 1. Are they happy with the job,2. Any problems or Concerns. That right there shows the customer that I care. GOOOOOes along way. Also send out news letters in the middle of the winter. Good communication, Knowing what your talking about when speaking to a potential customer,Alot of customers want to know your process to do the job, Explain that in detail, puts there mind at ease, Fullfilling the task you promised, And doing an good job, better than your competitors. This is what keeps them coming back and getting referrals for me. And beleive me, Price is only half the battle. I've gotten lots of jobs, Even though I've been under bid I still got the job, because of some of the above Mentioned. Thanks