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Word-of-mouth referrals are the best way to get new business Of course, you will need some business before you can benefit from word-of-mouth referrals, but every time you get a job, you need to work that customer for referrals that will lead to more jobs Getting referrals from existing customers is not only the most effective way to generate new business, it s the least expensive Advertising is expensive For every job you get from advertising, you are losing a percentage of your profit to the cost of advertising If you can turn up new work by talking with existing customers, you eliminate the cost of advertising If you do good work and take care of your customers, referrals will be easy to get, but you may have to ask for them People will sometimes give your name and number to friends, and they occa269
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sionally write nice letters However, to make the most of word-ofmouth referrals, you have to learn to ask for what you want Let s see what it takes to get the most mileage out of your existing customers
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Laying the groundwork is an important step in getting a strong portfolio of customer referrals If you don t make your customers happy, they are going to talk to their friends, but they won t be saying what you want to hear People are fast to reveal their bad experiences, but they are not so quick to spread good words To deliver the message to potential customers, you have to work hard at pleasing your present customers To lay the groundwork, you must start with the first contact you have with customers and maintain it right through to the end Many contractors start off on the right foot, only to stumble before the job is done I have seen many jobs go sour in the final days of completion One of the largest mistakes I have seen contractors make is not responding promptly to warranty calls If you are in business for the long haul, you don t want to alienate customers, even after the job is done Old customers often become repeat customers If you don t respond to callbacks, you won t be called when there is new, paying work to be done
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DURING THE JOB
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During the course of a job you must cater to the customer Most contractors don t have a problem with this aspect of customer satisfaction, but there is more to making customers happy than doing good work You have to fulfill your promises, be punctual, be respectful, and be professional
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At the end of the job you have to ask for referrals Don t expect customers to run up to you and hand you a letter of reference Often, asking for a letter of reference isn t enough It helps if you provide a form for the consumer to fill out People never seem to know what
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to say in a reference letter They are much more comfortable filling out forms If you design a simple form, almost all satisfied customers will complete it and sign it I m sure you have seen these qualitycontrol forms in restaurants and with mail-order shipments You can structure the form in any fashion you like Once you have designed and printed your forms, use them When you are completing a job, ask your customer to fill out and sign your reference form Do it on the spot Once you are out of the house, getting the form completed and signed will be more difficult As you begin building a good collection of reference forms, don t hesitate to show them to prospective customers Use an attractive three-ring binder and clear protective pages to store and display your hard-earned references When you get enough reference letters, you will have strong ammunition for closing future deals
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