Would you give your existing customers $50?

Discussion in 'Lawn Mowing' started by marckxman, Feb 20, 2007.

  1. marckxman

    marckxman LawnSite Member
    Posts: 141

    I had this idea.

    I started my LCO in fall 06. Not the bst time of year to start, I know but I got some good year-round maintenance contracts and I am looking to greatly expand this year. Mowing season starts in a week or so.

    My idea was to offer a $50 off coupon for any referal that results in a yearly maintenance contract.

    I figure a happy customer is the best advertising I could have and a my minimum contract is $1500 per year.

    Has anyone tried this or would it seem too amaturish?
     
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    If that is what you feel is a good move and one that will benefit both you and your clients, then I say go for it. I offer a referral bonus as well, but my system gives a free cut to clients who spend less than $50 per cut and $50 off a cut for those who pay more than $50 per cut.
     
  3. pjslawncare/landscap

    pjslawncare/landscap LawnSite Bronze Member
    Posts: 1,410

    Sounds like good marketing strategy to me. Word of mouth is best advertising after all and the word of a happy customer is best. Think how many advertisements u see that quote happy customers (and actors saying they they are customers) :rolleyes:
     
  4. desert rose gardening

    desert rose gardening LawnSite Senior Member
    Posts: 387

    I have often thought about doing something like that, on the lines of a free week for a customer who gets me a new account. If I ever stop my yellow pages add I might do it.
     
  5. lawncuttinfoo

    lawncuttinfoo LawnSite Bronze Member
    Posts: 1,010

    I offer $75 service credit when someone finds someone who uses me for a year, I gladly pay this since using conventional means it costs me $450 to sign up a new year long customer.
     
  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    You don't say how hard you need to work to find new customers (e.g. your present schedule is packed out, or present schedule is too sparse). However, you need to remember that you may get a referral for a customer that you do not want. The property may be one you do not want to service, the person is somebody you may not wish to do business with, or there may be other reasons. If you have to spend lots of money to get new customers, the $50 coupon sounds pretty inexpensive.

    I have had many referrals, but not prompted by any coupon. I have never paid anybody for a referral, nor have had anybody ask for anything. My schedule is always full, or nearly so. Some of the referrals have been, "... thanks, but it isn't the right fit for me," so the lead did not mature into a regular customer.
     
  7. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    I gave my clients 50 dollar gift card to outback...when they refered someone who signed up for a yearly service or that did over $1000 in install work...

    I never advertised in papers or yellow pages or door hangers. I only advertised in HOA newsletters in the hoods I wanted to work in...Cheaper than door hangers, newspapers or yellow pages. Plus it showed the residents that I was supporting their development by running the adds in their paper...
     
  8. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    We send the current customer a $50 restaurant gift certificate in a thank you card. It will read something like this "Thank you so much for referring your friend John to us. We could receive no greater compliment than to know that you highly enough of or work to tell your friends about us."

    We also send the new customer a $50 gift certificate in a thank you card. "Thank you for choosing XYZ to care for your lawn...."

    We are considering increasing the reward for the current customer to a $100 dollar bill. This is far more cost effective than most of our other advertising methods.
     
  9. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    Id keep it at 50 and still do a gift card, that way you have a receipt you can post in your advertising budget.

    No if someone throws down a 10K install to you...thats a different story...

    I was thinking a gas station gift card might be new gift....think about it...everybody uses gas....
     
  10. SpartanBill

    SpartanBill LawnSite Member
    Posts: 91

    Are these HOA's you already do work for? What is the best way to get in with the HOAs
     

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