Source: REPLACEMENT CONTRACTOR Magazine

By Rich Harshaw

Most contractors feel the same way about referrals: They love to get them, but can't figure out how to get more. Giving money for referrals doesn't seem to help that much — and complicated “rewards programs” only seem to create paperwork headaches. So how do you get more?

First, enhance the customer's experience. Audit your processes and you'll probably find plenty of room for improvement.

Before you show up at the home, use a prepositioning package to let the customer know yours is a reputable company. That way they'll trust you more.

Once you ink the deal, have your production manager make a personal phone call to the homeowner thanking them for their business and letting them know what to expect next. Follow that with a letter that covers the same information.

One of my clients in Chicago implemented these simple steps and saw a fourfold increase in referral business.

Another way to get more referrals is to give your customers a gift. Not if and when they give you referrals — that's too late. Give them a gift when you ask them for the referrals. This allows you to invoke the law of reciprocity: that if you give something to somebody, they'll feel obligated to give something back. How about some referrals!

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