Feeling frustrated with traditional advertising methods that drain your budget without delivering results? It’s time to consider a smarter, more budget-friendly approach to attracting new business: home services referral programs.

In any service industry, including home services, word-of-mouth referrals are essential for thriving. They not only bring in fresh clients but also build trust and credibility for your brand. By encouraging your happy clients to share their positive experiences, you can establish a dependable and cost-effective way to acquire new customers with minimal risk.

However, launching a successful home services referral program involves more than just offering incentives and hoping for the best. It requires thoughtful planning, creativity, and a solid grasp of your target audience. That’s where we come in! We’re here to help you navigate the process and share best practices for creating a program that not only draws in new clients but also enhances your brand’s reputation.

What is a home services referral program?

A home services referral program allows you to tap into your current client connections to attract new clients. By rewarding your existing customers for referring friends or family members to your home service or repair business, you create a win-win situation.

By setting up a structured customer referral program with referral software, you can keep track of the referrals made by your customers. This tracking can provide valuable insights into how well your referral program is performing.

Any home service or home repair company can benefit from a referral program, as long as you’re already getting referrals and positive feedback. We’ve seen these referral programs work well for industries like:

Why start a home services referral program?

When they need any kind of home service, many potential clients invest a considerable amount of time looking into and comparing different service providers in their area. However, individuals are generally more inclined to trust a brand that comes highly recommended by a friend.

 If a friend suggests your services, the person receiving that recommendation is much more likely to choose you for the job. In fact, people are four times more inclined to pay for your services when they receive a recommendation from a friend. 

By establishing a referral marketing program, you tap into the trust that your satisfied clients have in your services, turning it into a pathway for attracting new customers. These programs are generally much more affordable than traditional advertising, and create targeted outreach, making them a smart choice for business growth.

Referral programs are also cost-effective and low risk. With conventional advertising, you often invest without a clear understanding of the outcome, hoping for sales. But a referral program allows you to pay only when a referral leads to a sale, ensuring that your spending is directly tied to results, which helps keep your expenses in check.

Plus, thanks to software, you have the ability to monitor each referral made by your customers, giving you insight into how well your program is performing. This data is crucial for optimizing your program for the best results. Additionally, you can use this information to reward your top referrers and motivate other customers to bring in more business.

A structured referral program is a powerful strategy worth considering. By harnessing the trust of your satisfied clients, you can create an effective, low-cost, and low-risk channel for acquiring new customers that is also easy to measure.

Referral software for home services [Free Tools]

These referral tools for home services are a free and easy way to help you start your referral program.

Free Tools + Services:

Want a fully automated referral program for your home services business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Are you ready for a referral program?

Not every home service business is prepared to kick off a referral program, even with all the advantages it offers. To ensure your program thrives, you should have these key elements in place before you get started:

  • A group of satisfied customers who appreciate your work—preferably, some of them are already spreading the word about your services on their own.
  • An exceptional customer experience that makes people want to recommend you, from the initial check-in call to the final details.
  • A strong level of customer satisfaction, reflected in positive reviews, stellar comments, testimonials, and high ratings.
  • A website ready to receive the leads you get from referrals.

Home service referral program best practices

Now that you know you’re ready, follow these best practices to make your home services referral program a success:

Choose valuable rewards

The significance and appeal of the rewards you provide are essential in drawing participants to your referral program.

Implementing a dual-sided reward approach can be particularly advantageous, as it benefits both the referrer and the new customer. This strategy not only encourages more frequent referrals but also incentivizes the referred friends to choose your services.

When picking ideal rewards for the referring customer, consider whether you completed a one-time job or are providing ongoing maintenance.

For advocates who pay for regular services, like maintenance, routine pest control, or lawn care, free additional services and credits toward future services are solid options. But cash, Visa gift cards, Amazon gift cards, or gift cards to other businesses are appealing choices whether or not services are ongoing. After all, these rewards give someone freedom to spend the incentive however they wish.

certapro painting referral

It’s best to link the friend reward to your services, to motivate them to sign on. Service discounts, credits for their project, cash back after payment, and free services are excellent incentives for the referred friend.

Think about your rewards structure

In referral programs, you generally give the rewards when the purchase is successful – once the referred lead signs the contract for the job and/or pays you. But if your sales process is longer and requires more discernment, you might also give the referrer a smaller reward when a lead is qualified to keep referrers motivated. This is called a multi-step reward.

Additionally, consider providing larger rewards for referrals that lead to higher-tier services, such as bigger rewards for installations vs. repairs or maintenance. You might also start a tiered  referral program where rewards increase in value as someone brings in higher amounts of successful referrals. 

no bugs referral program

Or, to motivate repeat referrals, you might enter referrers into a drawing for a larger reward (say, season passes, travel rewards, or a tech item) – one referral equals one drawing entry. You might also give an added reward to whoever has the most successful referrals in a year.

If you choose to run a contest, like this though, still give set rewards for every referral – everyone who brings in new business should get some sort of incentive. 

Ask for referrals at the right times

One of the most effective ways to gain referrals is simply to ask for them. This should be a straightforward task, especially if you’ve been in regular communication with your clients throughout their project and have focused on building relationships that last.

Consider reaching out for referrals when you know your clients are feeling pleased and you’re fresh in their minds, such as when:

  • You’ve successfully finished a project
  • They’ve shared a positive review with you
  • They’ve left a nice comment about your work on social media
  • You’ve received enthusiastic feedback during a face-to-face conversation
  • You’re sending the invoice for a project you know they were happy with
  • It’s the first or second anniversary of a project that went smoothly
  • You’re checking in for a follow-up and they mention how well the install, service, or repair is holding up
  • You’re aware they’ve already recommended your services to others outside of your referral program

Make sharing seamless

Ensure that your referral process is user-friendly for your current and previous customers. They should be able to access the program and share it with their friends with minimal clicks or taps.

With Referral Rock’s One Click Access links, people can instantly start sharing your business. These links let people join the program automatically, without the hassle of signing up or completing any forms.

Be sure to include One Click Access links in all your promotional emails about the referral program. That includes newsletters and transactional emails – not just the emails dedicated fully to referral program promotion.

Plus, Referral Rock allows both new and existing members to access their referral portal using popular social logins like Google and Facebook. This makes it a lot easier for them since they won’t need to remember a password.

Once they reach the referral page, it should be straightforward for them to understand the next steps:

  • Craft a catchy headline that clearly indicates what customers need to do (share) and highlights the benefits for them (the reward).
  • Briefly outline the program and the steps required to earn rewards in a few simple points.
  • Provide a prominent call-to-action button that encourages customers to start sharing.
  • Guide customers to an FAQ page for any additional questions they might have.
  • Offer various sharing options that align with how customers typically share their favorite things with friends, such as email, social media, and a unique referral link they can easily copy and distribute.

culligan water

Spread the word about your program in various places

You’ve invested a lot of time and energy into creating your referral program, but all that hard work won’t pay off if your customers aren’t aware of it! To drive new sales, it’s essential to get the word out about your program. Here are some effective ways to promote it:

  • On your website (consider adding a prominent hero image or banner for easy visibility, along with buttons in the top and bottom menus)
  • Through mass emails dedicated to your program, sent to all your clients (we recommend sending these monthly to quarterly)
  • Via engaging social media posts
  • During conversations with clients, especially when you notice they’re pleased with your service
  • In personalized referral emails to your most satisfied customers
  • In newsletters, confirmation emails, invoices, and other communications that aren’t specifically about your referral program
  • In your email signatures and social media bios

Train your team to promote your program  

Your team can be a vital asset in spreading the word about your referral program. Encourage them to engage with customers about the program and its advantages, especially after successful projects. This approach positions your staff as trustworthy sources of information, enhancing your connection with customers.  

Additionally, think about equipping your team with referral cards to distribute at various events like home shows, community gatherings, or even during door-to-door visits. This strategy keeps your referral program top of mind for both your team and your customers. Just ensure these cards are linked to the digital aspect of your program, using QR codes. You want customers to be able to access it easily, without having to remember too much info! 

In addition, it’s important for your staff to have a solid understanding of how the referral program operates so they can confidently answer any questions.  

Send the lead a personal note from the referrer

The message the referred friend receives is often their first encounter with your business, so it should make a great impression. 

You should pre-write the message to save time for the referrer, but make sure the message is friendly and sounds like it’s coming from a peer – not from your brand.

No matter how you decide to structure the message, make sure to highlight the rewards the friend will receive after purchasing your services, and the benefits of your services themselves. Additionally, place an engaging call-to-action prominently to encourage the friend to take the next step.

Show your appreciation

Showing gratitude to customers for their referrals not only makes them feel valued but also motivates them to refer more people. Make it a point to send a handwritten thank you note whenever a referral leads to a sale. Additionally, consider sharing a public thank you on your social media platforms to acknowledge their support.

When customers see that their referrals are appreciated, it fosters goodwill and strengthens their loyalty. Along with any rewards they might receive, a heartfelt ‘thank you’ can significantly encourage them to keep sending new clients your way.

Select the right referral software

Choosing the right referral software is crucial for the success of your referral program. The ideal software can simplify the process of creating your program and automate its management. By generating referral links, you can easily track the source of each referral and promptly reward those that lead to successful outcomes. Moreover, the software gathers valuable data that helps you assess your program’s performance and make improvements for better results.

Referral Rock is a great option for those looking for best-in-class referral tracking, sharing, and engagement experiences, with concierge onboarding that doesn’t require any developers.

With Referral Rock, you can:

Easily track referrals: Each participant gets a unique referral link, enabling you to see exactly where each referral comes from. Customers can also track their own referrals through personalized dashboards.  

Automate marketing efforts: Keep customers engaged with strategic, automated promotional emails, and simplify sharing with passwordless links.   

Customize and streamline rewards: Set up any reward structure you choose, including tiered and multi-step rewards – then automatically pay them out

Integrate with essential tools: Seamlessly connect Referral Rock with over 50 different tools, including your CRM.  

Gather program insights: Quickly evaluate your program’s performance and make data-driven improvements.  

Set up in no time: With Referral Rock, you can launch your program in just a few days, with expert support available at every step.  

Start your own home services referral program

Home services referral programs can be a fantastic marketing strategy for attracting new clients and expanding your business. By harnessing the effectiveness of word-of-mouth marketing and encouraging your existing customers to recommend your services to their friends and colleagues, you can establish a dependable acquisition channel that is often more cost-effective than traditional advertising methods.

To build a successful program, it’s essential to choose the right incentives, decide when to distribute them, and ensure that the referral process is as easy as possible. Additionally, promoting your program through various channels and regularly assessing its effectiveness will help you make necessary adjustments. And launch a customer referral program using software—it’s simpler than you might think!