It’s a big deal for most people to undergo home or office renovations or remodeling. It can be costly, a lot of time is involved, and there are concerns over the quality of work. Also, if a prospective client will be in his or her home or office during construction, there will be many disruptions, with contractors walking in and out of the space. Clients need to trust their contractors. That’s why most people ask, “Do you know a good contractor?” “Are you happy with the renovations in your home?” “Can you recommend someone?”

And that’s why a referral marketing program makes sense for contractors. Referral marketing helps you get the word out from satisfied clients who are ready to sing your praises. Let’s see how you can leverage referral marketing to get more business and projects in the door.

What Is Contractor Referral Marketing?

A contractor referral marketing program encourages former clients to promote your construction contracting services through their social networks. This technique benefits both parties, as you can reward your customers for their advocacy and obtain new clients without incurring significant promotional expenses. For example, you can send a gift basket or gift card to thank clients for a recommendation to a friend or colleague who becomes a client. You can also offer the referred friend or colleague an incentive to use your firm with a discount on your services.

How to Get Your Referral Marketing Plan Going

For your referral marketing program to work, you need the following in place:

  • Existing clients who love your work – there may be people who already recommended your services or told you how happy they were with the work that was completed
  • A customer experience that is worth sharing – perhaps a project that turned out beyond the client’s expectations or a project that was ready in time for a milestone event
  • A high number of customer reviews
  • The ability to send referred leads to your website for more information and to contact you

Ask for referrals immediately after you complete a job. Also, ask satisfied clients to post on their social media accounts (Facebook, Instagram, X) so you can then share their recommendations on your digital platforms. If your customers can also post on Yelp, Houzz, Home Advisor, Porch, and other review sites, that would be great. Be sure to include their testimonials and reviews on your website.

You can also create an email ad to send to happy customers, asking them to participate in your referral marketing program. Make sure the messaging is simple and to the point. Let them know what incentive you’re offering when they refer a friend who uses your service.

Include referral messaging on your invoices, newsletters, and confirmation emails to reinforce your marketing program.

Partnership Referral Program

Consider collaborating with other local companies to develop a referral program. If you’re a residential contractor, for example, reach out to a local interior design company or real estate agency. When a customer employs you for renovation work and also uses the interior design company’s services, both businesses can offer the customer a discount or a special package. This type of campaign enables cross-promotion and increases your referral network.

A referral marketing program enables you to leverage your customers’ and business partners’ trust and satisfaction.