Contractors are always looking to keep their crews busy with current and future jobs in the pipeline. You want to be able to leverage the ability to continually get jobs whether the construction market is booming or experiencing a slowdown. One of the best ways to boost lead generation is via referral marketing or word of mouth.
Referral marketing enables you to leverage the power of the good work you do by asking for customer referrals. Humans are by nature social creatures, so asking clients to share their experiences and stories with others (friends, family, business associates, and colleagues) about your firm, crew, and the work you performed for them is expected.
Existing clients are also your best advocates. According to Nielsen, 84% of consumers trust recommendations from those they know. Referrals also influence up to 50% of all purchasing decisions, according to McKinsey. They enable you to stand out. Consumers actively seek referrals, and they can be the deciding factor between two similar businesses in the same geographic area.
Unfortunately, we don’t ask for referrals often enough and, therefore, miss word-of-mouth opportunities for new business and projects. Here are several tactics to use as part of your referral strategy.
Referral marketing is cost-effective, as it facilitates the sales process using trust you’ve already built. According to marketing firm Social Media, 60% of marketers say that referral programs generate a high volume of leads, and 54% say that referral programs have a lower cost per lead than other channels. Also, when a potential customer’s friends and family do the marketing, the customer is far more likely to convert. Any direct recommendation of your services is far more effective than an impersonal, indirect advertisement.
Sources: Nielsen, McKinsey, Social Media