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How to Turn Your Service Business Referrals into a Gold Mine

Kindra K, Marketing Coordinator

Nov 3, 2016 @ 6:37PM

Who do you trust more: your friend or an actor in a TV commercial? You probably don’t even have to think twice about it. Advice from someone you know is much more trustworthy than an ad.

People are more likely to listen to advice from their friends. They’re also 4x more likely to buy based on those recommendations. 

What does this mean for your business? Referrals are a gold mine that you should be tapping into regularly. 

1. Provide excellent service.

Show your customers the value of what you offer before you ask them to refer their friends. Inspire your customers to send more business your way by going above and beyond their expectations. The happier you make them, the more willing they will be to spread the word.

Even if you bend over backwards for all of your customers, they might still fail to refer friends unless someone they know asks for a recommendation. That’s why the following steps are important to ensuring your hard work and dedicated service pays off in more referrals for your service business!

2. Set up a referral program.

Give your customers an incentive for sending new business your way. Having a well-organized system to reward referrals will greatly increase your new business. More than 50% of people are likely to give a referral if offered an incentive. 

Some ideas for rewards include discounts on future jobs, a free add-on service, a gift card, or some kind of reward, monetary or not. At HouseCall Pro, we created a referral contest with the Grand Prize being an all-expenses paidtrip to Hawaii. While that may not be feasible for all businesses, choose an incentive that fits within your budget that you think would motivate your customers to refer others.

3. Ask away!

Find the right opportunity to tell customers about your referral program. Of course, when you have just done excellent work and have a customer already singing your praises, that is the perfect time to ask. If you have a dissatisfied customer, hold off on asking until you do everything you can to remedy the situation.

You might be afraid to ask your customers for a favor, but just be sure to ask nicely and let them know how much you would appreciate it. Chances are they will be happy to help you out. Rewarding them just sweetens the pot!

4. Remind them.

Your customers might forget about your referral program if you only tell them once. Seize every opportunity to remind them. Ways you can publicize your referral program include in emails, direct mail, social media posts, or any other platform that makes sense for your business.

Think of your reminders as a gentle nudge rather than a forceful push. Be careful not to annoy your customers, but do make sure your referral program stays top of mind for them. 

 By ensuring the satisfaction of your customers, awesome incentives, and friendly reminders, you’ll soon be turning your service business referrals into a gold mine! Check out this article to learn other ways to grow.

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