Message from Doug...

How to Get Referrals

I am often asked how we get so many referrals to our company.  A big portion of our workload is based on these referrals.  Just this year alone, over 31% of our leads – people contacting our company for work – have come from referrals.  Various people have referred someone, and sometimes multiple people, to our company.

We are very fortunate to have a great group of clients, friends, trades, and associates that want to help us succeed.  I am enormously grateful for the work they send to us.

I believe there are four requirements to getting good referrals for your business.  They are:

1. Do Good Work

Do a great job for your client/customer/homeowner.  Give them an experience that they would want their friends or peers to have. 

2. Be Reliable

The great sales trainer, Jeffrey Gitomer, explains that the definition of referral is risk.  When you refer someone to a company, you are taking a risk that they will be treated well by that company.  If the company performs poorly – such as not returning phone calls or making a mistake on the project – it reflects poorly on you.  After all, you suggested that the person use that company. 

In order for people to refer your company, they need to know they can rely on you to be friendly and professional.  You have to be reliable and show up consistently to remove their risk in referring you.

3. Encourage Referrals

Ask people to refer you to others.  Who do they know that want what you provide?  Let your clients and friends know that your business thrives on referrals from people just like them.

4. Reward the Referrers

Reward the behavior you want repeated.  Psychologists call this “reinforcement.”  I call it a “Thank You” note.  Any time someone refers you, be sure to thank that person.  This can be done with a simple, handwritten note of thanks.  It is easy to do, but it has a big impact on the referrer.  That person is much more likely to refer you again. 

Another way to reward referrers is to publicly thank them, which is what we do on the front page of every issue of this Newsletter.  You can also do this on your website, on social media, and in other marketing tools. 

If your projects have a high dollar value, such as a kitchen addition, home renovation, or new home construction, a referral can be very profitable for you.  I suggest you create a formal reward system where you pay the referrer money if their friend becomes your client.  It is more effective than almost any advertising you could do.

To Your Success,