By Dave Stafford
Sometimes, a “silver bullet” is what is needed to close that important deal or give you that extra edge when the buyer’s decision is a close one. Often, it is a requirement of “getting in the game” when nothing else will work. And it should be an integral part of your arsenal when you go to war against a well-equipped opponent. And that is the client referral. Whether it be a succinctly written paragraph, a page, a personal note or a brief conversation by phone, nothing sells your value better than one who has had a wonderful experience with you and your company.
BEGIN AT THE BEGINNING
From the beginning of the project, the goal is to make a praiseworthy effort in all aspects of the job. Start with a team meeting to outline the steps necessary to deliver superb performance. Questions, potential problems and perceived challenges must be fully addressed. Everyone must buy into this, as potential exceptions and glitches must be avoided. What if the delivery is late, the crew isn’t up to the task, site conditions are a nightmare or other trades are impeding progress? Have a plan for each scenario and which team member will address and handle it. If you approach each project this way, you’ll avoid the “3:00 a.m. panic” and heart-stopping frustration that comes with it.
Smile a lot! Others will pick up on how you’re feeling and copy it. So will your client. “Jake, things couldn’t be better; we’re on track, and we appreciate that you have Brad doing a good job of managing the other trades’ workflow out of our way. I’ll let you know if we could use some help.”
Sure enough, we uncovered a dismal surprise in taking up the old flooring: asbestos floor tile! Harry reviewed the options, wrote them up and presented them to Jake. You could have heard the screams in the parking lot: “How much is this going to cost me, and what kind of delay?” Harry supplied the best answers he could; Jake approved and work continued. The project finished on schedule.
ASK DIRECTLY
After the final walk-through and approval, Harry asked Jake for a couple of minutes in his office. “Jake, I’d like to ask a favor of you. Would you be willing to give us a reference based on our work performance? It would mean a lot to me and the team.”
Jake said, “I’m not much on writing, but how about I tell you, you write it up, and I’ll sign it; what’s more, I’d be willing to take a phone call, just give them my name.” And that’s what we did. Of course, Harry made sure to give Jake notice (and a reminder) when to expect a phone call.
The absolute best time to get a referral is just after performance is completed, and the client’s gratitude is the freshest! Memories dim, and clients become forgetful. Even a few days can make a difference.
If you’ve gotten a referral, here’s how to keep it fresh: Find a reason to visit Jake and remind him of the fine job you did, ask about other upcoming business or see if there’s any service issues. In one case, I asked this of a client, and he said, “You know, I had thought about calling because we have a couple of seams that are ‘sprouting’ and a reducer that’s come loose.” “We’ll take care of it this afternoon, Joe,” I responded. “I have an installer in the area. There will be no charge to you and under warranty, okay?” He was thrilled, and this reinforced his decision to recommend us.
I once made the mistake of using a good, long-term customer as a reference without first rechecking with her. She ended up giving a tepid response that almost cost me a job. I guess she was having a bad day and responded with, “Yes, Dave and his team do good work when you can keep them on track and properly motivated. I had to do some yelling and screaming a few times on this last job.”
I was flabbergasted at her remarks. She reminded me of our “no-show” install team that walked off the job when the HVAC crashed in mid-July. I reminded her that we agreed to return to the job with double crews once the HVAC was fixed, to finish on time. “Oh yeah, you did do that, but I had to call you a few times.” Shame on me for leaving that issue unresolved. Always double-check their current temperature before naming them as a reference.
UTILIZING A REFERRAL
It is one thing to mention a satisfied group of your clients in a general way; here are some examples: “We serve a variety of clients in the metro area, names with which you’ll be familiar: Metro Hospital, Universal Dynamo, The Proforma Group, Keane Systems, the Lockridge School, Temple University and Rutherford Institute.”
When you mention specific clients and/or use them as a case study, be careful of divulging too many details that might infringe on their privacy or cause embarrassment. Make sure you have their permission. For instance, “The Smith School’s cafeteria had just finished a complete makeover, but within a couple of months, their new vinyl flooring began to curl at the edges and release from the concrete substrate. As Mark, the facility manager, said, ‘The area is beginning to look like we installed large Frito corn chips. What’s worse, some tiles are even sliding around. What can you suggest, Terry?’”
“A third-party independent inspector would be best,” Terry said. After that detailed inspection, his report’s conclusion was that our competitor failed to completely remove old cutback adhesive, encapsulate the residue, thoroughly clean the area or apply the required primer-sealer before applying a cementitious coating, and failed to test for moisture emissions. The job now had to be redone. All tile had to be removed, the area shot-blasted to resurface, re-cleaned, a moisture-barrier sealer applied, then purchase and install new vinyl tile.
Terry gave Mark an estimate of the time involved and a price to procure and install everything anew. Mark was livid. However, this would fall within the general contractor’s warranty, so Mark began to relax (since he now had someone else to blame and pay for the redo). As it worked out, the contractor used Terry’s company to do the retrofit; Mark and Terry were both happy with the solution, and while the contractor was not happy, he had found a new flooring contractor that he could trust.
When the job was finally done Terry said, “Mark, I know you have lots of contacts within our geographic area; a kind word about us to your friends would mean a lot. We’re always looking for new business, and I promise you we would do the same fine job for them. In fact, I have a meeting with Fred L. next week; should he have questions about our work, may I have him give you a call?” The astute buyer will ask for references and often require that they be in the same general area of business or at least closely related.
KEEP REFERRAL CLIENTS HAPPY
Just as flowers need watering, clients need attention lest they wither and die. If you haven’t heard from them, make an appointment and see them in person, or at least have a phone call. “Jon, I was thinking of you today and wondering how things were going with you and your facilities. I haven’t heard from you recently. Are you okay? I’d like to set up an appointment to show off some of our new items and let you know about some brand-new services. How about next Tuesday? Will that work?”
Once you’ve made the appointment, review your history with him and how the last project unfolded, its good points and bad. Show your appreciation for his business, look for an angle to get more of it, and show appropriate samples and related services. If he was a willing reference, then, perhaps: “I hope you’ll continue to be a reference for us; we haven’t changed, we just work harder to get better at what we do. May I still use you as a commercial reference? I hope you will give us the same five-star rating.”
Of course, your motivation should always be to win new business and learn about his upcoming projects. Perhaps he can give you some inside info on projects that are forthcoming within your market area; jobs that he did not get that went to a friendly competitor. “I just got beat out on a job I’d hoped to get … maybe you’ll have better luck with ole Joe; I understand he wasn’t happy with his last flooring contractor. Yep, you can put me down as a reference. Or have him give me a call.”
Rewards for being a referral may take many forms, depending on what the client will accept and what they are able to legally receive. Some monetary forms (an envelope with cash), something tangible like a special dinner out paid for by you, or a weekend vacation retreat, can land both of you in hot water or be interpreted as payoffs or bribes.
With no thoughts of reward, I recommended a contractor and gave a summary of my experience with him. He wrote me a nice note thanking me for the referral, included a $100 bill, and put the note in my mailbox. What a nice surprise! That’s one way to do it. And it’s not the amount of money; it should be enough to be memorable but not insulting (like $10). The amount should not be based on the size of the project received unless there is a bird-dog arrangement with a percentage; even then, the dollar amount or value had best not exceed $500, in my opinion.
In the case of a very large, profitable job, perhaps a phone call with some choices: “Hey Jack, I wanted to thank you for that nice referral. We got the job, and it was a good one. I’d like to do something nice for you; how about a weekend away, my treat for you and your family? Let me know a good date, and I’ll make the arrangements. Okay? If that doesn’t work, perhaps a three-day cruise with all the trimmings?” Even if he demurs, you made the effort, and he knows it carried value. Or, “I wonder if you could use a wool area rug, say a 7’x’9 or 9’x12’, for your home? I have several that just arrived; why not come by our showroom and pick one out that will be perfect for your décor?”
Whatever method you choose to show appreciation, do it with class and some subtlety. Your goal is to let him know, in a tangible way, that you appreciated his effort to help your business grow.
THE AUTHOR
Dave Stafford is a former flooring company executive with over 35 years of experience in commercial, government and residential sales and management. He can be contacted at dave@dsainfo.com.
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