“Our Business is Based on Referrals and it’s Always Worked for Us”

I was inspired to write this article because the other day, I reached out to a builder who said, "We aren't interested in marketing because we have been 100% referral based, and it's worked for us for the last seven years."

What’s ironic is that after living in Santa Barbara for ten years, serving on the SBCA board, and working with G.C.s every day, I still have a hard time remembering that company’s name. I get that builder mixed up with two others who have similar names, and I couldn’t tell you a single project they have done. So it got me thinking about all the construction and housing industry businesses. How do they stand out and get the referral? And is getting a referral enough for a potential client to say, “Yep, we’re gonna work with you”?  

A good referral takes two things: the person recommending you has to remember you exist, and they have to believe in what you do.

Have you ever been asked for a referral? What goes through your mind? If you're anything like me, you think, "Unless I'm sure this person will do a great job, I'm not going to say anything. If they don't work out, it comes back on my reputation, and it's just not worth it!"

So if your work is 100% from referrals, the question you should be asking is, "What can I do so that people remember I am here and would never hesitate to recommend me." 

How do you stand out from the competition?

Connecting with People

Let's start with making sure people remember you exist. That requires some consistent connection. In this industry, face to face will always be king. Local events are a great way to make a lasting impression with many people in a short amount of time. But the challenge is you are super busy running a business, and we are in a pandemic. Here are some ideas to stay top of mind that don't take up too much time. 

• Emails: sending an email to your list once a month with a brief recap of the projects you are working on is a great way to keep in touch. In our clients' newsletters with 2 to 3 pieces of quality content, photos of new projects always get the best response. People love to see activity, and they love to follow success. (See a great example here)

• Social Media: Yes, we hate social media too, and lately, it's become a garbage can of heated opinions. Trying to avoid the confrontation, people are staying vague and scrolling through everyone else's photos without commenting, liking, or posting anything themselves. You would be surprised by the doors you will open from taking 5 minutes a day, twice a week, to post something and like or thoughtfully comment on others.

• Networking List: Customer Relationship Management (CRM) is the fancy word for this, but can we let you in on a little secret? Out of the 40-plus clients we've worked with, we have yet to see a CRM system that gets used. Yes, many of our clients had them, and yes, they can be pricey. But as far as using them actively and keeping them updated - haven't seen it yet. We've always found value in simplicity. We use a simple Excel sheet or Google sheet. We call it a relationship tracker (you can download our template here.) Don't let more than a few months go by without some connection with each person.

Thoughtful connections, consistently over time, are what keep you top of mind.

HOW OFTEN SHOULD YOU KEEP IN TOUCH WITH PEOPLE?

There is a direct correlation to how often people will use your service. If we were selling clothes or food - weekly, or even daily makes perfect sense, because people buy those necessities often. But if we are building, designing, or selling a home? That is a handful of times in someone's life, and therefore, a once-a-month update is plenty.

Remind People Exactly What You Do

Next, let's talk about convincing people that you do great work. Even if someone is a past client, they may hesitate to refer you. "Maybe I got lucky. Maybe we were just a good fit at the time, but other people haven't had as great of an experience. Maybe their work has fallen off." We need people to realize that you are the best out there and that you just keep getting better as time goes by. 

• Tell Us About Your Work: People love to see the work you are doing. It gives them a sense of pride, "Hey, look - I know this guy!" Keep your portfolio updated! Send out photos when a project is in progress showing off its unique details, and an update when it's finished.

• Tell Us About Yourself: Of course, the quality of the work matters, but people want to work with good people. If there is something about you or your story worth sharing, share it! There is so much talent and competition in this town, but there is plenty of room at the top. Not everyone is going to love you or what you do. But you are looking for 100 people to think you are THE BEST, not 1,000 people to think you are just OK. Be true to yourself, and you will attract the clients that are the perfect fit for you. 

• Ask for a Referral: I received this email from my business coach and thought it was worded excellently: "I am writing to ask if you know anyone who is looking to accelerate their business? My work is mainly via referrals, and I would love to work with another couple of clients who are similar to you (willing to do the work to invest in their own success). At the moment, I have space open right now for three more people. Let me know if you have someone in mind."

  At first, I said no. But it stuck with me for days, and eventually, I did think of someone, and now they are a new client of his.

• Give a Referral Gift: To clarify, no one with a sense of integrity will refer you just because you give a nice referral gift. But after the referral becomes a client, it's thoughtful and makes a solid impression if you follow up with a gift or cash. It shows you don't take for granted that they stuck their neck out for you. Referral gifts are part of our marketing budget, and we send a gift for every referral that becomes a client.

A thank-you gift for a referral shows you don't take for granted that they stuck their neck out for you.

What Else Can You Do?

Keep in mind that even if someone refers you, that potential client is likely going to do some digging on their own. If they pulled up your website and online accounts or kept asking around - what impression would they get? Does it look like you’re the best, or is everything an inaccurate representation of what you do? Ideally, you want some of the selling to have already happened before your first meeting.

In this industry, when the stakes are so high and clients are making such big decisions, referrals will continue to be the bread and butter of your business. However, the way people connect, communicate, and make decisions is changing. If you do great work but are looking to grow and need help putting the other pieces in place, please reach out. We’d love to hear about your business and see if we could help. Even if we’re not the right fit, or it’s not the right timing, it’s always great to connect with people in the industry!