One of the best things you can do for your business is to have a referral program. Why? I’ll give you 3 reasons:
1. You Will Attract Better Customers
What I mean by “better customers” is customers who are not looking for the cheapest bid. They don’t question your process or your prices, because they know your quality and reputation are worth it. They are easy to work with. This is all because they have been referred by someone who has already done business with you, or who knows you, your company, and your brand.
2. You Will Attract Higher-Paying Customers
Now, I want to be very clear about what I mean by this: I am not suggesting that you price gouge. Not at all! You should never price gouge, but you should also never be in a position where you need to discount or lowball your prices.
If you are watching this channel you are probably on the higher end of home service contractors. You put a lot of effort into the quality of your work. It is okay to charge a premium price for a premium product. You don’t want to provide the cheapest pool or pergola, and that’s not what your customers want. A better customer for you is not one whose only question is “How much is it?” They want a better quality product.
When you sell this way, you are dealing with high-end customers. As social people, we typically hang out with people like us. If you are getting referrals from high-end customers, typically they will refer their high-end friends to you. You will have not only one better customer but a string of better customers.
Another benefit to having a referral program is that you incentivize the people who have already done business with you. You can offer them a cash reward for a referral, or a gift certificate to their favorite restaurant, or—there are practically endless creative ways you can reward your customers. You benefit from the referral, and so do they!
3. Your Sales Process Will Be Easier
When customers are referred to you, it makes the whole sales process easier. These potential customers are not kicking tires. They are serious. They are usually not getting multiple bids, and if they are they are not looking for the cheapest one. In fact, the person who referred you to them has probably done most of the selling for you! They have said:
“Look at my new door—it looks amazing!”
“They did such a great job on my roof that you’re crazy if you don’t go with them!”
“Look at my pool and all the gorgeous landscaping they did with it!”
These customers have already seen the quality of your work! All you have to do now is explain how it all works and ask for the sale. You will not have to go to great lengths to impress them or build trust.
So, get a referral program together and start attracting better customers!