The 3 most common referral program mistakes

By Jenny Yu.  

Avoid these regular pitfalls to make your referral program work for you. 

In this episode of Roofing Road Trips®, Megan Ellsworth spoke with Rebecca Mayo, director of partnerships for gFour Marketing, about the importance of referral programs to keep a healthy stream of clients and jobs all throughout the year. Rebecca shared the three most common mistakes contractors make when they're trying to generate a referral program. 

1 – Not making the ask 

According to Rebecca, the first and most common mistake when asking for referrals is simple: not making the ask for a referral.  

“That's the number one mistake. People don't even try to ask for the referral,” she stated. “If they know that they have a happy customer who is thrilled with the results of the job and that the project went smooth, great communication from start to finish, all the boxes checked out, not making that ask is one of the biggest mistakes that somebody can make. You're leaving money on the table by not asking for a referral.” 

So, make the ask. 

2 – All or nothing approach 

The second mistake Rebecca spoke of was letting the overwhelming urge to take the “all or nothing” approach to starting a referral program take over, a daunting fear that can often prevent business owners from going through with starting a program of their own.  

"I've seen this happen quite a bit where people think that they have to either have everything or not do anything at all. They think ‘Oh, I have to purchase customized cutting boards and gift baskets,’ which is amazing, but it is a lot of time and effort if they don't have the team structure or the bandwidth to do it,” Rebecca shared. 

When it comes to referral programs, something is always better than nothing, and having it done at all is better than perfect. “As long as you're doing something that's going to move and drive that referral piece forward,” Rebecca said, “you're in a good position.” 

3 - Nearsightedness  

Finally, Rebecca shared that a common mistake in building a referral program is not capitalizing on its long-term benefits. With as many as 80% of referrals occurring within a three-month timeframe, a consistent referral system can help keep business coming during the slower seasons, not just the peak months. 

“When one referral comes in, you'll see three more and over time, you're going to be building a flywheel that's going to be a huge component of your bottom line,” Rebecca offered. “If you can just take it piece by piece and build that consistent communication effort into the business, that's a great place to start.” 

Read the transcript or Listen to the podcast to learn more about how to establish a consistent referral program for your business.