We have been thinking about doing something like this for the up and coming year. I was just wondering how that has worked for you and what should it say-look like.

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I’m really interested in this, too. I’ve tried to put together a referral program, but haven’t been very consistent.

Right now, we survey every client (won and lost). I offer a $5 movie rental gift card for lost clients who return the survey (why you didn’t buy from me is very valuable), and am completely inconsistent for won clients who return the survey and referrals.

Thanks -
Rob

Maybe Morgan (TheTechSource) can weigh in with what’s worked for him. He was recently featured in the 2009 State of the Industry report:

Morgan Harman of The Tech Source in Simi Valley, Calif., is an anomaly—his business is up 50 percent in 2008.

Several factors have contributed to this:

  * First, Harman never stops marketing—he always wears his trademark jumpsuit everywhere (it’s emblazoned with his logo)
  * Second, his company just reached its sixth year in business and is starting to earn some solid referrals
  * Third, and most important, the company touts itself as IT specialists. While many integrators have chosen to not delve into the area of maintaining their clients’ computer systems, The Tech Source thrives in that market

I hope he does reply as this would be great help.

This may not be the answer you want to hear, I hope it helps.

The Tech Source did not have any funding to start, therefor I have been very careful on expenditures.  To date we spend $0 on advertising.  As the article referred to above indicates, I do try to prioritize marketing any way I can.  This includes having our logo on every piece of paper, everyone has business cards and uniforms.

Up to this point our focus has been on doing everything we can for our current customers.  We do not have a referral program.  I am certain it has had an effect on the pace the business has grown (i.e. slower because of not actively seeking referrals).  However, I think our ability to focus on our customers has been aided by the slowness of growth.  If the business grows too fast, then the customers don’t get the attention I would like them to have.  It has been costly, I have not personally financially gained as a result of this business model.  But my intention going into this was not quick monetary gain.  I want to build a business that will last, a business that makes a difference, one that has an impact on employees, customers and the community.

Referrals are coming… slowly.  Some of my best customers have yet to refer us to friends or relatives.  When I feel like the business is ready to jump to the next level I hope the attention we have invested in our current customer base will open up referrals we can solicit.  In the interim, I am diligently working on putting the infrastructure in place so that we aren’t re-inventing the wheel on every job (sound familiar?).  Also, so that we have the staff in place that can continue to cater to each customer.

I think this year will be about perseverance.  A referral program is a good process to put in place, but remember you will get referrals when you do a good job taking care of your customers.  What may be more important than a good referral program is a strong customer qualification process.  Something to help you identify if a job is worth doing very early on.  A referral for a bad job is a bad referral.  A job without profit was not worth doing.

I should make bumper stickers.

Morgan