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Referral Program for Residential

Discussion in 'Business Fundamentals' started by mmplowing, Sep 20, 2007.

  1. mmplowing

    mmplowing Member
    Messages: 56

    Hello All-

    I want to offer a referral program for my current customers. I was thinking of doing for every customer that you send to us that signs a contract you get $20 off your next plowing invoice. Does that sound fair?

    How do you all work the referral program?

  2. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    We have a running spiff program
    If we get any work out of someone that you referred, we send you a nice letter along with a printed on very nice hardboard paper a $25 gift certificate. We call it Cowboy Cash (Lone Cowboy, get it?)
    It's very upscale looking, it seems to work ok.
    and of course, you can collect tons of them.
    I only have to pay once for the referral, then hopefully I get more work out of the 2nd customer without having to pay for the advertising.
  3. sdplowing

    sdplowing Senior Member
    Messages: 108

    The one I'm trying this year is $5 off the price to plow their drive for the year for every customer reffered that signs on. So what if I plow a drive for free the whole season, I'll get 6-8 new customers out of it.

  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Referral programs can work good. You would hope that your current customers would recommend you to their neighbor without any incentive, but to offer them a free plowing might make them give them a call or walk over and recommend you.

    Depending on how generous you are, you should only give a discount or free plowing if the referral signs with you.
    Your customer: "I think my neighbor wants his done."
    You: "Okay here is a free plowing."
    Neighbor: "I have Snow-N-Go do mine for $5 a time. Can you beat that?"
    Then you're out the price to do your current customer.

    I like the "cowboy bucks" idea. Would have to change the name. Referral Bucks, Customer Cash,

    You: Here is $20 for each referral you gave me. Would you like to use that toward summer landscape project?
    Customer: Yes. Let's put it toward the brick paver patio in the back along with a new pond and water fall.

    It works with seasonal contracts, it works with per push contracts. If they don't use it, you’re not out anything. If they do, you made the money on the referral.
  5. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    Thats going to go over big. Run with it. Trust me.