Recently, I conducted a class on client service. When I asked how many companies had referral systems in place, not one of the 40 participants raised their hands. I was surprised since referrals are one of the best ways to gain new clients, and one of the least expensive ways to do it.

      Why referrals? First, you know you have a contented client because they have given you the name of friend, neighbor, or relative to call on. If they didn't trust you, they wouldn't refer you to people they know.

      You're not making a "cold call" when you contact the referral. Someone that person knows asked you to call. The referral will be polite and give you the courtesy of listening because of their friend, colleague or relative. And, he will probably check with that person after your call.

      Companies that don't have referral programs in place often don't have them because a referral program requires them to be proactive. They have to take the time to ask. They have to follow up. It seems much easier to spend money on an advertising campaign. However, an ad campaign often is less effective than a referral program. With referrals, you spend more time, less money, and generate better results.

      Referral programs can be subtle or they can be overt. A subtle program is a reminder program. It means that you don't make announcements or make a habit of giving a person who referred your company an incentive or gift. You might just surprise that person with flowers, a thank you note, or some other "thing."  You hope that surprise encourages that person to continue to refer clients to you.

      In reminder programs, you consistently remind clients about your company through subtle means: a magnet on their refrigerator, stickers on plumbing and HVAC equipment, e-mails with quick tips that will help with home care and home comfort, newsletters, and other direct mailings. The hope is that your name permeates their subconscious minds when they see those magnets or stickers on a frequent basis. Then, when a need arises, they look for your name and number on the tangible reminder, that sticker or magnet.

      An overt referral program is a conscious effort on your part to tell all clients that you have a referral program, what that program is, and what they can expect if they participate in the program. Some clients will choose to participate. Others won't. These programs typically include rewards such as gift certificates for dinner, bonds, and cash.

      Announcements for the programs can be as simple as information on the back of a business card or details about your program might be included as a flyer with your service tickets. You could announce it in a newsletter or a special mailing to your clients.

      It's easy to use your business card for service referrals. Print a statement on the back of the card which gives the person a 10 percent discount or $10 off their next service call for referring a friend. Make sure there is a place for the name of the referral so that you can give her credit. Then you'll give both the new client and the referring client the discount. Technicians should be giving their business cards to clients when they arrive at the client's home for service calls. This is a very inexpensive way to generate new clients.

      When a new client calls, ask how they happened to call your company. If it is a referral, send a coupon to the referring client. That client will be pleased and surprised!

      Offer maintenance agreement clients a dollar amount off their renewals for referring clients. Determine how many agreements they must generate for you to get a renewal at no cost to them.

      If you send newsletters, make sure you describe your referral programs in them. Customers reading them might have overheard a friend complaining about her plumbing system. Your referral program gives your client the opportunity to do something good for that friend.

      Many of you send cookies or other thank-you gifts after a job is completed. Clients have come to expect some form of thank you soon after work is finished. What they don't expect is a telephone call 30 days after the job is done. After finding out how the system is working, ask the person who they have talked to about their new system. If someone is spending thousands of dollars, they've told somebody about it.

      These are the potential referrals for your company. Ask, "Do you think (NAME OF PERSON) would be as happy as you are with a new system?" If so, get their name, telephone number, and permission to call them.

      If you have sold replacement equipment based on energy savings, another telephone call needs to be made in about six months, again a surprise to the client. The reason: 30 days after a system is installed is too early to see energy savings and lower utility bills. However, the client should see the savings within six months. This telephone call confirms the savings and is a time to ask for referrals again.

      Those of you who have contracted with a company to send cookies after the job is completed have a passive referral system in place. A "report card" is usually included with the cookies. Your client completes the evaluation card and returns it to the cookie company which sends you a report. Make sure one of the questions on that card is about referrals. I would still call 30 days after the job to make sure the system is working properly and ask for referrals.

    Referral programs don't have to be complicated. They just have to be consistent. That means, if it is verbal, the salesperson mentions it at the end of every job. Your office personnel all must know about it so that if a client calls, they can explain it. You should also give everyone in your company the same opportunity to earn a referral fee that you offer your clients. They'll start referring clients to the company, too.If a client gives you a referral, you know she was happy with your company. That is the best way to ensure that you keep your current clients happy and generate additional clients.

 

    So, try it for 90 days. See what results you get. I think you'll be pleasantly surprised. Just mention the referral program at the completion of each job or include a notice with your service agreements. It's a good idea to staple notices to the agreements so that the technicians can't forget to give them to the client. Remember, a referral program is inexpensive in terms of dollars. However, it does take time and continual commitment to see long-term successful results.