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It doesn’t matter whether you have been in the flooring industry for a few years or just opened your business. Customers obtained through referral program are more likely to be long-term clients and tend to spend more than other customers.

The flooring industry is competitive regardless of where you are or the services you offer.

If you want to stand out and attract more attention to your flooring business, you have to consider a marketing strategy that will help you achieve your goals. A referral program is an excellent way to do that.

Nearly 85% of home and business owners not only trust recommendations from friends and family, but they act on them.

Here’s everything you need to know about referral programs for flooring contractors and how you can start your own.

WHAT IS A REFERRAL PROGRAM?

Flooring Contractors Referral Marketing Program

That second part is important, but before diving too deeply into how to start a flooring business referral program, let’s look at the pros and cons to make sure you want to start one.

THE PROS AND CONS OF REFERRAL PROGRAMS FOR FLOORING CONTRACTORS 

The Benefits :

  • Creates a Base of Loyal Customers 

Because referrals are made by friends and family who usually understand their loved one’s needs, the referred customers tend to be a good match, so to speak, for the companies that they are referred to.

So long as you offer exceptional service, they have no reason to switch contractors and stay loyal customers.

Referral programs that use coupon incentives also encourage repeat customers.

  • Works as an Advertisement

You have to make your customers aware of your referral program somehow, and social media can be a powerful tool to do so.

Your referral program can act as a mini ad for your flooring business.

Say you post on your social media profiles about your referral program, and a satisfied customer shares it — that could put your business in front of new potential customers.

  • Creates Better Relationships 

When a customer recommends you to a friend or family member, in a way, they are forming a partnership with you.

They are trusting you to live up to their referral with quality work or products.

When you do so, you’ll strengthen your relationship with those customers.

  • It Is Cost-Effective 

Referral programs are easy to use and affordable to implement.

They allow you to give fresh flooring marketing ideas and services towards your existing clientele, meaning you have to work less to convert new customers.

The Potential Downside

  • Difficult to Control Your Customers 

If set up incorrectly, a referral program can generate poor-quality leads.

For instance, if you simply offer an incentive for sharing a post on social media, customers are liable to share it with anyone and everyone, regardless of whether they need a flooring contractor.

  • Inability to Control the Growth

If you set unsustainable referral rewards and your program becomes popular, you could quickly end up losing revenue.

It’s vital to choose a referral reward that will always generate more revenue than it costs.

HOW TO START YOUR REFERRAL PROGRAM 

If you are ready to start a flooring business referral program, here is how to do it:

1. Choose an action.

What do you want your customers to encourage friends and family to do?

Be specific here, as you need to be able to verify this action was take.

Will you offer the reward if a referral gets a quote or schedules a consultation? Do they need to make a purchase?

Remember, the action should generate revenue that exceeds the cost of the reward.

2. Choose a reward.

Next, you need to decide what reward you’ll offer for a verified referral.

While you can offer anything you want, discounts tend to be the most beneficial. Why?

You not only get revenue from the referral, but you encourage the referrer to make another purchase or schedule a service as well to use their discount.

3. Come up with a verification system.

You don’t need a complex system to verify referrals, but you should decide ahead of time how you’ll ensure the referral results in a sale and that the referrer gets the reward promised.

That could be as something as simple as having them provide the name of whoever referred them when they check out or could be done using a computer program where customers have a referral link.

4. Track your progress.

Don’t just set up your flooring business referral program and call it good.

Track how much revenue it produces. That way, you can adjust things if you aren’t seeing the results you want (perhaps by changing your action or reward).

Ready to step up your marketing game?

Learn the How much flooring contractor’s website cost to maximize your flooring business potential.

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