I have a roofing company in more of a rural are. I don’t storm chase but I cover about a hour and a half radius. I am wanting to implement a referral program. I having seen many companies and they all seem to have a different program. Some give visa cards so give cash. Some give $75 some give $250 or even more. My question is 2 part. What is the referral progam you found to work best? What is a legal amount with the referral program? thanks
I know some guys who give several hundred for referrals.I have considered doing something like that but came to the same conclusion.I would much rather a customer give me a high recommendation for the following,Excellent Salesmanship,Insurance Relations,Customer Satisfaction,Follow through with the contract,No Damage,No Accidents and A Quality Install.I want a recommendation on these points alone.Once a dollar amount is put in the mix then I feel that the recommendation maybe tainted.I give customers Dinner Gift Cards,Flowers/Plants,Wine,and cards.Yes those are gifts of gratitude by me to the customer because I appreciate the business and referrals.But to have a set price/amount then no.I feel people appreciate things when its unexpected.Thats my opinion though.
JlC as far as I know as a contractor there is no legal or not legal part to a referral program.
A referral program is whatever you want it to be.I have always been comfortable with one hundred dollar referral. I’ve never seen a single homeowner yet that did not have a smile on his or her face handing them hundred dollar bill for a referral.
My stipulation has always been if they give me a referral and we build the job they get the money. Win-win situation.
Stormer check your Pm’s
I am continuously on our Reps to do a better job of “selling” their Customers to get referrals. It’s been my experience that when picking up the back end check, the Reps are pretty uptight and seem to want to grab the check and hit the road. Seems to me to be the best time to celebrate a job well done and further develop the relationship. The pressure and anxiety should be gone from the Customer at this point. Use that moment to ask for some referrals instead of looking for an excuse to get the check back to the office.
Same deal on follow up down the road. Why not call the Customer the week after a big rain storm to see how everything is going and to make sure the roof is holding up okay? If you’re a top notch sales rep, you either remember some personal things about the Customer or made some notes so you can also ask how the oldest kid playing soccer is doing, how the vacation to wherever went, etc… And then at the end, slip in something about having anyone in mind who might need a new roof they could refer to you.
With all that said, I’m not quite the purist Roofmaster is but a bit more pragmatic. We will generally give a referring Customer some type of $25 to $50 gift card. We often make offers of $100 per lead for referrals that turn into a job. As soon as I get a few spare hours, I’m going to design some type of card we can hand out to existing Customers that is a coupon sort of thing where they can redeem a completed referral coupon for $xxx.
If you’re doing stellar work, both on the roof and in the sales arena, at least 25% of your work should be coming from referrals and as much as 50% or more. If that isn’t the program, you should do some soul searching to try and determine where you’re missing the boat.
We give out $100 visa gift card to referrals that turn into jobs.
The only time we really push this program is if there is a storm that hit in a small area.
I dont see the program a huge success since the majority of our leads are referrals anyway.
But every now and then you will have 1 customer sending 4-7 leads your way and they will chase down their gift cards lol.
everyone ahead of me are right. what works for me is selling myself and using my win lose or draw this is how it works. i sell the job 100 per referal up to 500 dollars. I lose the job, i send a letter stating:
I am sorry we could not help you with your home improvment project but if you like what we had to say and our service explained i am offering 100 dollars per sold referal. In short i will be paying up to 500 on a roof i did not install.
Normally i get 2 referals out of them so its well a referal and sold so i draw money so i completed my job. let me know what you guys think.
Every sales rep should make it a point to ask for at least three referrerals when collecting the final check on each job. As AD said, the sales stress should be long gone at that point. Some satisfied HO’s are more than happy to give referrals (they were “smart” enough to choose you and they’ll want to tell others about their smart decision) with no expectation of a monetary reward but they’ll happily take the reward as well.
At final collection, reiterate the process you went through with/for them whether an ins job or a retail job. Remind them what you promised then show how you delivered and followed through on your promises. Reinforce in their minds that they made the right decision. Always ask for a set number of referrals. I recommend three, as above. You are giving them an attainable and specific goal to reach.
Whether the sales rep is a sales person or co. owner, at least 1/2 hour should be spent with the HO when collecting the final check doing the above. This will build confidence in your company and will result in more referrals.
Ok so switch shoes, you hire a roofer because your buddy gave 'em your number and maybe you know they did their roof hence how the roofer has your number. You just decide on this roofer. So he finishes your house and asks for payment as well as three numbers and he offers you $100 if you give up three more names and only one has to buy and you get $100. Three buy $300. Now how can you not feel cheapened? I don’t think you can not, and I know I would.
After the fact, after they give your name to someone, that someone calls you- that is worth something but not free money. A letter of thanks with the other customers name in there with a “The least I can do is treat you and your wife to dinner” with a Gift Certificate attached to a restaurant of quality, maybe one you frequent- running into them at that restaurant makes everyone involved feel warm and fuzzy.
No necessarily a bad idea… It mostly depends upon what you expect to make from that roofing referral. You got to do the math for being profitable. If I was going to make (profit not sales) $1,000 on a referral. I don’t mind giving up $500 on that.
Thanks for an explanation. I did not know it.
I’m impressed. $100 bucks for a referral. What about a bird dog fee?
Funny…I get referred all the time…dont pay a cent…