Building a customer base can be tricky for home service providers. You might find your business stuck in a lull, unsure how to start expanding your customer base. And as the days and weeks tick by with the booking calendar remaining painfully sparse, the stress might begin to build.
So, how do you get your name in front of them if they’re not actively looking for your services? How do you put your business on their radar? By creating a killer referral program. These programs leverage the excellent services you’ve already provided to existing customers by encouraging them to share their experiences in exchange for an incentive.
Of course, you’ll need to put some thought into your referral program to promote its success. These marketing referral program ideas are here to get you started. They can inspire creativity and help you create a sensational program that attracts more customers through word-of-mouth, giving your new program the best chance of knocking it out of the park.
What is a Marketing Referral Program?
A marketing referral program is a strategy that helps you grow your customer base through word-of-mouth recommendations. It’s an excellent form of advertising for all sorts of home service providers, whether you specialize in HVAC or plumbing, and can be a great addition to your current marketing strategy.
After all, most people trust the recommendations of their friends and family. So, when your services are recommended by one of their loved ones, they’re more likely to choose you when they need them.
How Can a Marketing Referral Program Help Your Business?
Incorporating a marketing referral program can benefit your business in many ways, including:
Affordable Way to Build a Customer Base
Building your customer base can be challenging, not to mention expensive. Getting your name out there isn’t simple, but with a referral program, it becomes much more manageable. It’s generally more affordable than other customer-base-building marketing tactics, like social media, SEO, or targeted ads.
For small businesses with snug marketing budgets, those options might not be feasible. With a referral program, you can improve your reach without doing much. Instead, you’re simply incentivizing your current customers to recommend your services to others.
Higher Conversion Rates
People are more likely to take action and hire you for whatever service you offer when you’re recommended by someone they trust. So, when you amp up your marketing referral program, you’ll likely see better conversion rates than traditional advertising.
Better Customer Retention
Referred customers make excellent customers. They often stick around longer and are more likely to enlist your services repeatedly. This higher retention rate and value translates to more revenue over time and less money spent on traditional advertising avenues.
Improved Reach
With traditional advertising methods, your reach can be limited by the strategies you choose. However, with referral programs, there’s no limit to your reach. Your current customer might recommend your services to their sister, who might refer them to a friend, who might refer them to their coworker. These programs can help you expand your reach, accessing potential customers who might’ve never seen your traditional marketing efforts.
18 Best Referral Program Ideas (With Examples)
While some people will happily recommend your services if they are satisfied, others need a bit of encouragement. That’s where a referral program comes in. These programs can help drive those word-of-mouth recommendations from previous customers to potential new customers.
Of course, a well-suited referral program isn’t a one-size-fits-all type of thing. Instead, since every industry is different, the referral program that works for you might vary from the next. If you’re short on ideas for referral programs, you’re not alone. Here are a few marketing referral program ideas to help you get started:
1. Discounts on the Next Service
A discount on the next service is an appealing reward for many loyal customers. If they like your services and keep coming back, they’ll love a good bargain on their next service. So, encourage them to share their positive experiences with others by offering a specific discount on their next service.
For example, let’s say you’re an electrician, and one of your loyal customers refers a new person who books a service with you. To reward your customer for their loyalty, you could offer them a 15% discount on their next service call.
2. Cash Rewards
Cash is an excellent incentive for a rewards program. It isn’t limited to anything in particular, and referrers can use it for whatever they please. You could give referrers a cash reward for each successful referral that results in a booked service.
For example, suppose you’re a plumbing company. You might offer a $50 cash reward for each new customer referred who books a service worth $300 or more. Adjust the reward and minimum booking amount based on what works best for your business and bottom line.
3. Gift Cards
If you’re not too keen on cash rewards, consider incorporating gift cards into the rewards program. Sometimes, gift card bundles are available at a discounted rate. For example, Costco was selling $100 worth of Crumbl gift cards for $80.
If you go this route, choose gift cards based on customer purchasing patterns. Of course, you don’t necessarily have to do a gift card to a specific company (although you could if you wanted to).
You could also go with a more generalized option that gives your customers the freedom to purchase whatever their hearts desire. Pre-loaded Visa cards are a great option for this—you can use them almost anywhere for all sorts of purchases, so your referrers won’t be limited by a gift card to a particular store. Amazon gift cards are another solid option, especially considering the sheer amount of stuff you can find on the platform.
4. Service Upgrades
Sweeten the deal and encourage referrals by upgrading the referrer’s services. This could be an upgrade to the service they’re hiring you for or a free add-on they might want or need.
For instance, suppose you’re a painter. You could offer a free color consultation for the first referral or a discounter exterior power washing service before painting the home’s exterior. Or, if you’re a roofing contractor, you might offer a free roof inspection or skylight cleaning service.
5. Annual Maintenance Plan
Suppose you’re an HVAC contractor who offers annual HVAC maintenance plans designed to keep systems in tip-top shape. While the plan might already offer a decent deal on packaged maintenance services for the system, you could level up by adding a discount to your referral program.
For example, you might offer a free inspection for referring three new customers or an even better discount after referring five new customers.
6. Tiered Rewards
A tiered referral rewards program is an outstanding way to encourage your referrers to keep sending new customers your way. It gives them something bigger and better to work towards, helping you continue to receive a steady stream of new customers.
So, create a tiered program with rewards that get better with every referral. For example, you could offer a $25 Visa gift card for the first referral, a free service upgrade with the second, and a $50 gift card for each referral after that. Choose items or services that your customers would want and actively work towards to keep the referral stream flowing.
7. Loyalty Points
Reward your customers for their ongoing loyalty in referring others to your business with a point program. Let them earn a set number of loyalty points for each referral. For example, they might earn 50 loyalty points for one referral, 100 for two referrals, and so on.
Include redeemable services for set numbers of loyalty points. 500 loyalty points might be worth a free service call, and 1,000 points might be worth a free drain cleaning. Adjust the rewards to match your services, their worth, and the perceived value of each referral.
8. Monthly Raffles
Add the luck of the draw to your referral program to inspire excitement among referrers. Choose a free service or household item (such as a nugget ice maker, sparkling drink maker, etc.) that your referrers can’t refuse. If you’re unsure, send out a survey via email, client portal, or referral app. Let your customers choose what they want to win in a raffle.
Then, each month, draw a name to determine the winner. If you’d like, you could adjust the number of entries each referrer gets by the number of referrals they make. So, if Stephanie submits seven referrals throughout the month, she could get seven entries into the next month’s raffle.
9. Partner Discounts
With partner discounts, you can support other local businesses while boosting your own. Partner with a local non-competing business. Offer a discount on one of their services with each referral, and they can do the same. It can be a great way to attract business to both of your companies without detracting from the other.
Of course, you’ll need to choose a non-competing business. For example, if you’re an HVAC contractor, you might partner with a plumber. A roofing contractor might partner with a lawn care provider, and a painter might partner with an electrician. Think outside the box and chat with other local businesses to see your options.
10. Seasonal Promotions
Many home service companies experience a lull during certain times of the year. For example, painters might see bookings slow down when winter brings chilly temperatures. So, to promote a steady stream of bookings, offer seasonal promotions that bring attention back to your business during those slower months.
Ramp up referrals by creating a sense of urgency with limited-time seasonal promotions. The promotion could offer extra loyalty points, discounts, or service upgrades. Make it clear that the promotion won’t last. For instance, suppose it’s December 1. You could offer a referral promotion that offers two times the loyalty points for each referral until December 12.
Make the promotions hard to beat. Your regular referral program should already be solid, but the extra limited-time promotions should sweeten the deal and make it hard not to refer a few more people to your business.
11. Referral Bonus
Give your customers a little bonus for referring people who become new customers. The bonus could be a free service or part that they might need. Get creative and make it something that appeals to customers. Of course, this doesn’t mean you have to offer an expensive part or time-consuming service for free—it can be something smaller, but make it worthwhile.
For example, suppose you’re a plumbing company. In this case, your referral bonus might be a free drain cleaning service for each new customer referred. You could add specific terms to keep things manageable, such as stating that the free drain cleaning service must be paired with a paid service.
12. Priority Service
Quick response times are a must for any service company. If your customers can’t or struggle to reach you, they’re unlikely to come back. And while your company might already prioritize quick turnarounds and readily available customer service, this can be a great addition to your referral program.
For example, suppose you have a customer who has encouraged many new customers your way. The next time they need a service, you could offer priority booking. Of course, this option has limits, as scheduling can vary dramatically from day to day, but it can be a good addition to the mix.
13. Group Discounts
Double-sided incentives are one of the best incentives for a referral rewards program. These incentives give back to both the referrer and whoever they add to your consumer base. Make this incentive whatever works best for your business. For example, you might offer a discount for both parties on their next service or a free service upgrade.
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14. Charity Donation
Referral programs with charity donation rewards are a great way to give back to those in need while also helping your customers support the charities they love. You could incorporate charity donations as an option in your referral rewards program, allowing your customers to choose the charity.
For example, after two referrals, you could offer a $50 charity donation to a charity of the referrer’s choice. You could even make the donation in the referrer’s name. Increase the amount of each donation to create a tiered rewards system or offer a flat donation rate—it’s up to you!
15. Referral Tracking App
If your business has an app or client portal, add a referral tracking page. Add user-friendly graphics and elements that showcase progress, including sent referrals and rewards. This makes it easy for your customers to keep track of their progress.
16. Online Referral Requests
Make it easy for your customers to submit referral requests. If they don’t know where to submit the request, they can’t do it, so make it easy for them. Add a dedicated referral page to your website and incorporate a referral button onto receipt emails and client portals. Better yet, do all three. Give your clients quick and easy access to the referral program. Don’t make them hunt for it.
17. Show Your Appreciation
Show your best referrers that you appreciate their help by giving them something extra. It doesn’t have to be anything extravagant or expensive—it could be as simple as a heartfelt handwritten note expressing your gratitude. Those personal touches go a long way in communicating your appreciation and may motivate your customers to continue promoting your business.
If you want to level up, you could even send out a care package to your best referrers on their next referral. Include premium products or services, such as tickets to a local event or a free service from your business.
18. Offer Branded Merchandise
You might be surprised at the effort people will put into getting a well-designed piece of branded merchandise. Use your merch as part of your referral program (bonus points if you make it part of a tiered program). For example, you could offer a free hat or travel cup for the first referral, a hoodie or gift card for the second referral, and so on and so forth.
Of course, you’ll need to design the merch carefully. A graphic designer’s help can be incredibly beneficial during this part—they can help you create a logo for your business that people will want to wear.
The best part? It’s free advertising all on its own. When your customers wear or carry around the item, your business name is exposed to more people. It’s a win-win.
How to Promote Your Marketing Referral Program
While these marketing referral program ideas are a great place to start, you might not get far without promoting it and getting it out there. So, in addition to planning your program, you’ll need to iron out the details of how you plan to get it in front of your current customer base.
Generally, this starts by clearly communicating the details of your referral program to your existing customers. Make an eye-catching email, social media post, or even a flyer with snappy language that explains your referral program clearly and concisely.
Next, turn your efforts to your website. Create a dedicated landing page that explains the referral program in detail (this is a great place to put that big, bold referral button). Include information about how the program works, the rewards for successful referrals, and clear instructions on how to participate. Make sure your customers can easily find the page on your site—don’t make them go hunting for it!
After that, focus on getting the word out there during in-person visits. When someone visits your business, or you head out for a service call, be sure to mention the referral program. You could even create brochures that explain the program and hand them out as you go.
It’s not always as easy as 1, 2, 3, but with consistency and effort, you can push your referral program out there and maximize its impact. Eventually, you’ll even get to enjoy the fruits of your labor when the referral bookings start flowing in.
And if you need help keeping all of the new referrals in check, Housecall Pro is here to help. Our business management software is designed to streamline scheduling, dispatching, invoicing, and payment collection to help you make the most out of your time and effort. Sign up for a free 14-day trial of Housecall Pro today.
