Tag Archives: sales

Getting Customer Referrals

The traditional contractor was an expert on their trade.  If it was a carpenter who could form any concrete job or the finisher who made concrete smooth as silk the traditional contractor knew his or her business.  However, there was also something that many contractors were not as effective at addressing.

Completing a job is still the best and easiest part of concrete for many contractors. 

Customer Referrals

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When the project is completed too many contractors still fail in getting referrals from the customer.  This not only is a failure to land future business opportunities but it is also a failure to bring a professional closing to your efforts.  Let’s take a brief look at the latter reason to ask for referrals and then focus the remaining article on the methods to employ in getting referrals from your customers.

Asking for referrals at the conclusion of your projects sends a very direct and professional signal to your customers that you are proud of the effort that your company has completed from start to finish.  A contractor who is embarrassed by their company’s effort will send the bill in the mail or “chicken out” and have their foreman drop the remaining bill on their way departure from the job.

The contractor, or the estimator/salesman who landed the job, should approach the customer confidently, thanking the customer for the opportunity to perform their work.  Then, the contractor should personally hand the remaining billing statement to the customer and walk through the life of the project, encouraging the customer to ask any questions that they might have.  This effort brings a strong close to a process that was started to improve the customer’s needs or meet their expectations.

Now, let’s address the great need to solicit referrals from your customer.  First, customers who are satisfied with the work you have completed are more likely to share the names of others who might be in need of your services.  Why wouldn’t they?  Think about it!  If you have just taken your spouse to a new restaurant and enjoyed a quality meal with attendants waiting on your every move wouldn’t you be very excited about telling your friends about your experience?  Many of us might even call a friend to tell them of the experience.  The same is true for your customers if they are satisfied.

OK, let’s assume that we are dealing with satisfied customers.  Then how do we go about getting referrals from our customers?  Consider a few suggestions and techniques

1. Just Ask! 

No secret here.  Asking your customer for the names of others who might also be interested in your services and quality concrete work should be as natural as breathing.  How do you actually ask for referrals?  Let me give you a non-threatening phrase you might adapt.

“Mr. Humphrey, thank you for your business.  We really appreciate the opportunity you gave us to do your work.  We’re always interested in working with good folks, would you be able to provide three or four names of individuals you know that might be interested in some of our services?

At this point you should be looking up at the customer with a pen and pad ready for the names.  You may only get one or two names; then again, you might get five to seven names.  It’s happened to me several times.  Keep that pen and pad in full view of the customer and watch the names start coming!

2. Invite Customer’s Friends to Job Site

This technique is especially good if you have discovered in your selling process that your customer mentioned other friends of theirs with similar problems or desires. During this type of discussion you might ask your customer about what they know about their friend’s problem or want.  Then, as you get close to finishing your customer’s project invite your customer to ask their friend over to see your crew’s results.  Always invite on the finishing up side so the customer sees the “good stuff” not all the torn up effort and debris.  Often a live visit from the customer’s friends may win you more work and is clearly a referral building effort.

3. Give Away Three to Five Business Cards

This is an old sales technique that still works.  In this high tech world we live in it is still funny how many customers still ask for business cards.  So, always give your customers more than one card; give three to five.  While a few may be thrown away a few cards may also be given away to their friends when those friends ask about the great job that was performed.  Giving cards away to your customers allows them to become sales people for you.  Again, this is a solid referral driving technique that can land you work.

4. Ask for E-mail Addresses

Just as you might ask for the names of friends from your satisfied customer so too can you ask for e-mail addresses of their friends.  It’s a sign of our times when we memorize more e-mail addresses than phone numbers.  Depending on the type of customer you have performed work for, try asking for e-mail addresses for their friends who might also need similar work performed.

5. Follow-up with Referral Requests

It is good salesmanship to always send a follow-up note to a customer after the completion of a project.  Use this same effort to include asking for three to five names of friends or work associates who could use your company’s efforts.  I recommend enclosing a half page that your customer can easily write down a few names and contact numbers.  Always include a self addressed envelop with a stamp to make it easy for the customer to just drop in the mail.  You may not get many to respond to this effort BUT for those few who do it more than pays for the postage.

6. Offer a “Commission” for Customer Referrals

A final technique that has been quite successful for many contractors is offering a commission to customers who refer you to other prospects that lead to a sale.  I’ve seen residential contractors give $50-$100 to customers who gave them a lead that turned into a sale.  This might not be appropriate with commercial customers however sending gift certificates, tickets to ballgames, wine packages, etc. are all examples of “commission” that might be used.

One note of special significance is the impact of referrals on your bottom line.  Working your current customers to gain new business opportunities is the best use of your marketing dollars possible.  Such an effort literally costs nothing!  What this means to you is increased profits as you have little to no costs associated with landing the new business.  Thus, you can afford to spend a little money on postage and even giving away a few free ball tickets.

referrals 2

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Realize that you’ll need to use more than one of the suggestions listed earlier.  Be creative in your offerings but more than anything else I can suggest, get into the habit of asking for referrals every time you close out a job.  Be proud of your company, your workers, and your production results.  Good luck!

Winning New Customers

In today’s post, we’d like to give you another preview of our video series, The 2-Minute Drill. Developed for the construction industry, the 2-Minute Drill includes videos specifically designed for owners & senior leaders, field leaders, and front-line employees at your company, as well as sales tips to help you boost your bottom line.

Winning New Customers

In Winning New Customers, Brad provides actionable tips on how you can change your behavior to start winning new customers. These tips include:

  • Doing more market research before pitching to customers
  • Identifying networking opportunities to grow your business
  • Being able to demonstrate your industry knowledge to customers
  • Highlighting your firm’s competencies
  • Being able to share your unique selling proposition

Enjoy!

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Getting Repeat Business

Nothing sells better than previous work that was done correctly, on time, and that made the customer satisfied.  Every contractor looks to increase their sales each year yet many continue to miss out on the easiest sell there is in the business…selling to a satisfied customer!

As a contractor, if you are having trouble getting repeat business with customers there is all likelihood that they may notconcretepour have been as satisfied as you thought.  The secret in repeat business isn’t selling what you’re “going to do” for the customer but what you have proven that you “can do.”  Customers don’t buy bad memories.

So, let’s look at how you can get repeat business.

#1 Get it Right…the 1st Time

Most customers will not give a contractor a second chance; so you better get your first job with a new customer right the first time.  This requires you to perform quality work in a quality manner.  Remember, quality isn’t necessarily what you think it is but what your customer thinks.  Therefore, it is very critical that you clearly understand what your customer’s needs and expectations are and do everything possible to conform to the customer’s definition of quality.

#2 Meet with Customer at Job Completion

I’m simply amazed how many contractors who are not even at the job when it is completed.  They may be off getting another job started, measuring a parking lot to be sealed, or selling another new prospect.  If you are an owner you should do everything possible to be at the job when it is actually completed.  Rain or shine, problems or no problems, the senior person needs to be at the project to be able to make the first impression and sales effort toward the next project.

#3 Don’t Survey…Go Face to Face with the Customer

A good many contractors still attach a customer satisfaction survey with their final billing statement.  This sales/marketing technique has been taught for many years, I ought to know as I’ve shared this same sales tip in many conferences.  However, this effort isn’t good enough and, more importantly, rarely gets the results that was initially thought and taught.  What’s the best action to take?  Make it a personal visit with the customer, at the conclusion of their job, to walk the job site and discuss what they like and what they want to be improved, corrected, reworked.  Going this extra step will gain you a personal audience with the customer and award you with lots of “brownie points” toward landing the next project with this customer.

#4 Inform the Customer that You Want Their Next Project

Think about this: you’ve just completed a project that the customer verbally confirms that they like what they experienced.  This same customer tells you that they have another parking lot to pave or seal and stripe.  You should, at that moment, not be shy about telling the customer of your interest in doing their next job.  Have some fun with the customer by insisting that you want to extend their positive experience.  Don’t be shy and just wait until the customer calls you later about that new work…because they just might not call!

#5 Maintain Follow-Up Points of Contact with Customers

This truly takes some discipline but it is really more of a scheduling issue than anything else.  Set up a process in your scheduling for the year that allows you to be reminded of three to five follow-up contacts with each customer.  The future contacts might include seasonal reminders to take care of their pavement, birthday cards, congratulations on the birth of a new child or a child’s graduation, or just dropping a note to say hi.[pullquote]The future contacts might include seasonal reminders to take care of their pavement, birthday cards, congratulations on the birth of a new child or a child’s graduation, or just dropping a note to say hi[/pullquote]  If out of sight leads to out of mind then repeat follow-up will lead to repeat work.

#6 “Sell” Warranty on Your Completed Work

You may actually give a large portion of this away but selling your customers on allowing you to extend a warranty on your firms work will assist the effort to keep the customer leaning your way.  Actually, you may find that it opens the door to more strategic planning and budgeting on your customer’s part to taking greater care of their pavement maintenance needs.

#7 Induce Repeat Customers with Discounted Pricing

Now before you think I’m just referring to lowering your prices for the sake of it, consider that you have little to know marketing costs associated with landing repeat business.  In some cases you may not even be required to make another formal presentation but just amending the prior contract.  This is worth something of a discount to the customer.  Trust me, most customers do expect something in the form of a discount if they have worked with you before.  And if you have completed more than one job for the same customer in the past I can almost guarantee you that the customer expects some kind of a discount.

#8 Work the Customer for Referrals

This effort is all consultant sales!  If your customer is happy with you and your crew’s effort they will most likely be more than happy to give you the names of other friends and relatives that need your work.  Don’t be shy about asking for such names.  And don’t be shy about following up with your customer periodically over the next year to get additional names.  Satisfied customers are never “put out” to help a hard working business person who is honest, does quality work, and is a pleasure to work with on top of everything else.

It has been my experience that many contractors often can build up to 40% – 60% of their annual revenues directly tied to repeat business.  These same contractors never take such repeat business for granted as they expend a lot of energy to insure that they get every future project that their customers will be completing.

As you move to grow your company, don’t take any job lightly.  Even if the job has gone badly, work hard to be visible and work diligently to solve the customer’s problems.  Don’t avoid uncomfortable situations, especially if your crews have screwed up a job royally.  It is often the “2nd shot” out of the rough that gets you and your company back in the middle of the fairway and set up for a great finish!