is part of the Informa Markets Division of Informa PLC
This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
By Brade Yoho, Dave Yoho Associates
Ask any in-home salesperson to identify their preferred lead source and the answer is almost always the same—referrals. So why doesn’t the average home improvement company get more referrals? For the most part, there is a lukewarm application of modern techniques to generate them.
The most effective referral programs incentivize every lead (whether sold or not), provided it is a property owner who can use your product and will listen to your presentation.
An additional incentive or bonus should be added if the lead is sold. Train your sales representatives to introduce referrals during each presentation.
With the proper scripting, your customers will want to help the salesperson, your company and themselves, especially when you utilize creative referral methods. Coach your salespeople to present the referral program to unsold leads and offer a “leave-behind” with homeowners.
Developing a Modern Referral Program
Your program is working if the number of referrals you receive an increase on a month-to-month basis. Create monthly, quarterly and annual incentives for representatives who sell the most referral leads.
Many of our clients sell 20-30% of their volume from referrals with a close rate that is 10-20% higher than other sources.
Remember, you have invested a significant amount of time and money in lead generation efforts. As such, you need to maximize revenue from each of your customers, and a well-developed referral program will help accomplish this goal.
Dave Yoho Associates is one of North America’s largest, oldest, and most successful small business consulting companies. Dave Yoho has appeared in over 100 training videos. He is the author of the best-selling book: "Have a Great Year Every Year" (Oakhill Press). His company developed the sales methods which are used by the most successful people in the in home sales industry.