Plumbers See Big Value In Customer Referrals

Customer Referrals Need To Be Cultivated!

Every plumber knows that one of the best ways to inexpensively build a client base is to get referrals from satisfied clients. Referrals are almost always the best new clients, cost little to get, and remain very loyal. So, how do you induce existing clients to refer new ones to you?

Dick Wagner, Pres of, based in Cape Coral, FL, points out that the people his clients refer, tend to "match that client in outlook and perspective, so when a good client refers people, they are usually good clients. Make sure the person you're asking a referral from is your all-star client."

I primarily focus on word-of-mouth referrals to help keep costs down. "As my rates have gone up over the years, clients can refer another client to me, and I offer that new client the same grandfathered rate as the referring client gets.”  Plus, "instead of spending on advertising - and I don't spend a penny - I'd rather pass on the savings to the customer."

Many entrepreneurs reward their clients for their referrals. "New-business revenue generated by a member is automatically deducted from the existing member's account," says Wagner.  "If my monthly consulting fee is $1,000 and you refer a new member who pays $1,000, the referring clients’ fees are waived for a month."

Some firms reward both the existing and the new customer by offering existing customers the opportunity to send an e-mail to their contacts with a referral code. If the referred person signs up for service, both customers get a credit to their accounts.

Other small-business owners offer gift certificates for items clients would enjoy  - think chocolates, flowers, restaurant gift cards and the like.  Finally, don't forget one old-school incentive: a straightforward thank you. You would be shocked at how few people say ‘thank you” today! When you do say it, it can mean a lot!

I often send a handwritten thank you. It goes a long way toward strengthening client relationships. Also, in today’s world a hand written thank-you is so rare that they make a huge positive impact.           Author:   Dick Wagner