With General Contractors who are on a tight budget, referrals are a great way to find new customers. While providing excellent service is the main way to help improve the chance of receiving referrals from customers, there are some other methods contractors can use to obtain referrals.

Ask
This may seem obvious, but many business owners don’t ask for referrals. They may be uncomfortable with the idea, or perhaps they don’t know how to ask. This is natural but there is no need to be nervous. If the job is done right and the customer is happy with the work, they will have no problem offering referrals. As to what to say a simple question such as “Do you know anyone else who is planning renovations or a building project?” is a great opener. Chances are customers know others who are planning projects and can provide their information.

Offer an incentive
There are people who aren’t comfortable giving out friends or family information without talking to the individuals beforehand. If this is the case you can leave a referral sheet or business card with them. However, people get busy and they may not remember to talk to these people without a reminder. Offering an incentive, such as $50 for ever referral that turns into a customer or a discount on their next project, can help make sure they follow through.

Social Media participation
Participating in social media is another great way to gather more referrals. Contact current and previous customers and ask them to like a Facebook page or follow on twitter. This allows their contacts to see the company information. Offering a free e-book or report for social media referrals is a way to offer a virtual incentive.

Don’t forget to say thank you
It is important to thank customers who refer their contacts. Dropping a post card, note or special offer as way of showing appreciation shows customers that this contractor does care about customer service and building relationships. They will remember this effort the next time they come across someone who needs contracting services.

Referrals may be an inexpensive form of marketing but it isn’t an effortless one. Contractors need to ask customers for referrals either in person or online to help gain more referrals. Offering incentives and saying thank you will help increase the number of referrals a contractor receives. With a little work, a general contractor can have a profitable business working solely off of the referrals received.