Even if you’re crazy busy right now, like most contractors across the country, that won’t always be the case. And while you’re pumping out jobs left and right, you still have to stay in touch with your customer base, so they won’t forget you in the future. You need to ensure that they contact you when they need your services again and refer your business to others.
One of the biggest mistakes a home improvement business makes is letting their past customers become (and remain) just that …past.
The simple truth is that these customers represent a potential gold mine. We all know that acquiring more customers for your home improvement business has become more expensive and time-consuming than ever before. I'm asked the same question time and again, "How do I generate less expensive leads for my contracting business?"
The good news is that when it comes to these otherwise “dormant” customers, you’ve already done all the hard work; you’ve met with them, completed their project, and hopefully left them with a great impression.
The bottom line is that they have developed a level of trust in you and your business. But once you’ve completed their project, the real work begins.
If you don’t make an effort to MULTIPLY those customers through referrals for your contracting business, you are leaving a ton of opportunity and money behind.
We have a great client - Arry’s Roofing Services in Tampa Bay, Florida. A big chunk of their business comes from referrals. When we started working with them in 2010, they got referrals, but they didn’t have a SYSTEM for getting them.
Today, they have a system, and it works… it works so well, it’s worth millions of dollars a year to their bottom line.
Get More Referrals for Your Contracting Business
Here are 5 actions they (and our other top clients) do to guarantee a steady flow of referrals:
1. They provide their customers an experience worth bragging about. In this highly competitive age, it’s no longer acceptable to do a “good” job for your clients; you have to do a GREAT job and make it a memorable experience for them. You must go above and beyond the norm and perform the type of work that will absolutely blow their minds.
2. They say Thank You. We live in a fast-paced world where few people take the time anymore to simply say “thank you.” Most customers feel unappreciated, which could be a reason they don’t return to do business with you or refer you to others. If you want your company to stand out from the crowd, you must find a consistent way to let your customers know you sincerely appreciate their business.
3. They stay in touch. Left on their own, your customers will forget about you… if you let them. Stay in touch with your customers. Remind them about who you are, the solutions you provide, how to get ahold of you and that you appreciate referrals. As good as they are at Arry’s, they don’t take any chances with their customers. They use email, newsletters and the telephone to stay in touch with their customers.
4. They have a formal program to reward referrals. Most companies have a referral program. They say that if a customer sends over a referral they’ll do or give XX. Problem is, they might tell their customers about their program once or twice… again, Arry’s doesn’t take any chances. They run a quarterly referral contest, and it’s successful because they remind their customers on a regular basis about their Referral Rewards Program (see #3 above).
5. They make a big deal of every referral they get. Finally, the average lead cost right now is north of $300; that’s the minimum value of a referral. So why take them for granted? Too many companies just take a referral and do nothing to reach out to the person that made the referral.
When you get a lead from referrals for your contracting business, make sure to track down where the referral came from. Then reach out to that person and show your gratitude. Give them a gift, send them money, send a thank you note, make a phone call.
In the end, referrals are serious business. Arry’s understands how important referrals are to their business and their bottom line. They don’t take any chances, they don’t just wait around for referrals to come in. They proactively create a steady stream of referrals. You can do the same, just put these 5 tactics in place and watch your referral business increase.
To find out how gFour can help you make your business more referable, request a demo today!
- FREE 10-Minute Discovery Call with gFour Marketing to find out if we can help you discover hidden profits in your business.
- Brian’s new book, The 7 Secrets To Becoming A Wealthy Contractor, is now available. Visit TheWealthyContractor.com for a free copy (just pay shipping).