By Patrick Hogan, handle.com
Word of mouth is one of the most powerful ways to broaden your client base. If more people know about how great your company is and how top-notch your services are, you are more likely to gain new clients and grow your business.
Given that, it is very important to leverage your existing client base and use a referral system as a regular marketing tool. Referrals are considered “earned advertising,” and customers have a higher chance of committing to your business if they have heard good words about your company from sources that they trust.
Not only can referral marketing help you reach and get new clients, but it can also be instrumental in letting you keep your loyal customers. Here are eight steps that you can start doing to maximize your referral marketing strategies:
Always go above and beyond
Exceeding expectations is key if you want your existing clients to put in a good word for you. Sure, you provide excellent service. However, if you want to impress your clients, you need to go beyond the minimum.
Doing way more than what you are expected to do will certainly elicit positive feedback from clients. You will not only keep your loyal clients happy, but you can also expect that they will be more than willing to give you positive referrals.
Study the market and your target clients
Having a good referral marketing strategy means knowing what type of new clients you are trying to gain. You should study everything you can know about your potential customers.
When doing your research, ask the following: how big are your potential clients business? What industries do they work in? What problems do they constantly encounter?
Identify gaps and opportunities for you to step in. It is best to put yourself out there when you know exactly how you can be of service to your potential clients.
Be ready to answer client questions
If a potential client calls you to ask questions about your services, you better be ready to answer their queries. Nothing is more embarrassing than being caught by surprise and sounding unprepared when speaking with a potential client.
It will help a lot if you have a referral template that you can pull up so you have a ready pitch for a new customer. The template should not just include basic information about the services that you offer, but should also have details on the rewards and perks that they can enjoy.
Offer incentives to existing and new clients
A reward system is a good way to keep your existing clients and attract new customers. When you offer incentives, you give your existing clients a reason to actually give you a referral.
At the same time, you also increase the chance of convincing potential clients to give your company a shot. Your rewards can be as simple as offering a bottle of wine or a free lunch, or you can also offer discounts and other reduced rate packages, especially for new customers.
Share your knowledge and expertise
One way to spread word about your business is to share content that other experts and professionals in the construction industry may be interested in. Conducting webinars on LinkedIn or holding live Q&A sessions is a good way to promote and broaden your reach, while sharing valuable information to both your existing and potential clients.
Be proactive in your approach
When asking your existing client base to give you a referral, it is always best to be proactive. Provide them with a template for writing their feedback instead of letting them write a referral from scratch. You may also email both your existing and potential client so you can connect them in one email thread. This way, you are proactive in paving the way for them to talk and discuss your services.
Be willing to give referrals too
Since you are expecting your clients to give you referrals, you should also be willing to do the same for them. Take time to write good referrals for your existing clients and make sure to also connect with their potential clients. Giving referrals to your clients is a good way to encourage them to also give referrals so they can help you grow your business further.
Accept “no” as an answer
Some clients simply do not give referrals as a matter of policy. If a client says “no” when you ask them if they can give you a referral, accept their answer without prodding further. You can instead ask them to fill out a survey or to leave a review on your website. Satisfied customers are often willing to put in a good word even in small ways.
About the Author:
Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.
