Referral Sales
Monday, February 05, 2007
A contractor's business can fail or succeed based on how well referral sales go. You spend most of your marketing budget trying to acquire new customers. And you spend a lot of time and energy trying to gain a new customer's trust. The advantage of a referral sale is that it is a warm lead.Why do People Give Referrals?
- They might want to help out friends and family by making sure they get the same great service that he or she received
- They could want to be perceived as the person who knows how to find the best contractor or service professional
- They most likely want to help you and your company out for doing good work on their project
How to Get Referrals
If you want your clients to give you a great testimonial, you need to not only offer a great service but you need to go beyond their expectations. I've found that most companies who are afraid to ask for referrals are those who do not trust their own abilities and do not believe in what they have to offer.
Start the process of requesting referrals when you close on the contract. Do not ask immediately but... set the stage. Let them know you enjoy working with homeowners and helping them complete their projects - you don't enjoy doing any of the marketing work. Tell them that after you've done the job, and if they're happy with the quality, that you'll be asking them for referrals.
When you have completed your work is the best time to ask for a referral. The homeowner or business owner can see the quality of work you've done. They can see the benefits. When they are happy that the job is done, close to budget and on schedule, they will be very happy to spread the word.
The Wrong Way to Ask for a Referral:
"Do you know anyone else who needs a new roof?"
The Right Way to Ask for a Referral:"I'm glad you like the work. Because we use this product and that installation method there will be no leaks and it is guaranteed for 30 years. No one else in the business does it the same way. I'm trying to let as many people know about our service as I can. If you know of anyone who's home would benefit from our method and products, please call them and give them my information. Oh, and if you can write down their phone number or email address, I'll follow up with them in case they have any questions."
Make sure you leave plenty of business cards and any product or company brochures you may have. Would even be the perfect time to give them a refrigerator magnet so that your phone number is always handy - in case they don't know anyone at that time who needs work done.
When Else Can You Ask for a Referral?
- If you run into a major problem on the job site and you solve that problem... ask for a referral. Once the client knows that you're capable of overcoming a severe issue and that you're flexible, he or she will be happy with your service and be willing to pass your name along.
- If you are able to present your client with really good news - like the product being shipped has arrived early, or you were able to give the client a discount - go ahead and ask at that point. When they are happy that you could provide a surprise or were able to go beyond their expectations, it will be easy for them to sing your praises.
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Labels: Referrals, Small Business Advice, Small Business Marketing
