Encouraging Customer Referrals - What Works?

Discussion in 'Starting a Lawn Care Business' started by Chad at HindSite, Mar 25, 2015.

  1. Mjk1968

    Mjk1968 LawnSite Member
    from Midwest
    Messages: 49

    It is too early in the season to tell yet, probably won't know the success of the program until our fall services kick in (aeration & seeding). The point system will require some admin time, but I plan to proactively call customers that have earned points asking if they want to schedule an additional service and redeem the points they have earned.

    The bottom line is referrals are a source of new customers and can be one of the lowest cost advertising/marketing plans in place. I don't advocate anyone giving away money or services if you don't have to, it just needs to be controlled both by your growth plans and budget.
     
  2. Efficiency

    Efficiency Banned
    from zone 6
    Messages: 1,854

    currently 11.87% of our program revenue has come from referrals. Definitely the lowest cost of acquiring a client there is, even with our formal referral program. Why a company with growth aspirations wouldn't have one is beyond me.
     
  3. Efficiency

    Efficiency Banned
    from zone 6
    Messages: 1,854

    I looked at your program for about 30 seconds and said who cares. Its way too complicated IMO. But Im just the village idiot so take that FWIW.
     
  4. RigglePLC

    RigglePLC LawnSite Fanatic
    Messages: 16,001

    I agree. Simple and immediate is best. I used to give my customers a "referral credit". One free lawn application if they found us a new customer. So the next application was free. If they were prepaid, it carried over into next year, and showed up as a credit in their winter prepay offer letter. $50 dollar limit in value.

    I think it would be better to give the freebie to the new customer. So a customer could give a coupon worth a free application to his neighbor, (if neighbor signed up for at least a year. New customer only. ) So the customer can give a gift to his neighbor.

    At one time I had a contest, and a random drawing. I had a sheet with a space to write a potential new customer's name and address who would allow us to give him an estimate and lawn analysis. The rest of the sheet had a 10 question local history test. Send in your entry. Or include it with your check. The history quiz winner got free lawn service for the year. Ties decided by random drawing. Limit value $250.
     
  5. 205mx

    205mx LawnSite Silver Member
    Messages: 2,404

    $50 check for friend or family
    $100 for someone in your neighborhood
    That's mine.
    Customer has to we with us for two months.
    Posted via Mobile Device
     

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