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The Myth About Repeat and Referral Leads – part 1

The Myth About Repeat and Referral Leads – part 1

A myth exists in the remodeling world that repeat business and referral leads will come to you without you lifting a finger. Too many remodelers believe this myth and spend all their effort and money trying to look outside of this valuable community for business. The sad thing is that these outside sources typically deliver leads that are more expensive and of lesser quality.

In fact, many top remodelers find that 75% or more of their business comes from referrals and repeat business alone—and they represent pure gold if properly mined. 

I want to share a critical, proven principle of marketing:

The Golden Rule of Marketing

You can double the repeat business and number of referral leads you receive if you constantly market back to your circle of influence.

Capturing Business From Repeat Customers

Securing customers is one of the toughest parts of this business. Once you’ve sold someone a project, do everything you can to capture all of the remodeling work that they’ll purchase in the years to come. We all know that it costs much more to find and sell a new customer than it does to re-sell an existing customer, so focus your efforts on your previous customers first.

Communication is the key to obtaining the maximum amount of repeat business. Continually stay in touch with your clients to maintain what advertising agency folks call “top of mind awareness” (TOMA). Your marketing goal is to have your previous clients consider your company first when beginning a remodeling project. If you don’t stay in touch with them to remind them about the quality service you delivered, they simply won’t remember!

Picture this: You’re in the grocery store and run into clients for whom you completed a successful kitchen remodel several years ago. In the course of a friendly, warm conversation, the clients mention that they just finished an extensive addition to their home! You’re dismayed and quickly ask, “Why didn’t you call us?” The typical answer is, “We didn’t know you did that kind of work.” Your heart sinks as you realize that your marketing program could have easily changed this scenario.

Just as you need to remind your customers about the service and quality product you provided, you also must frequently talk about the array of services you bring to the table. Never assume that your previous clients know everything that you offer. It’s your job to educate them.

In the next issue, we’ll discuss the second component of the gold mine: Referral Leads. Until then, let me know what you think! How do you turn past clients into repeat customers? I look forward to reading your comments below!

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