This is a quick video on how carpet cleaners, tile and grout, commercial cleaning and janitorial services can use a referral tree to build referral marketing campaigns. Now whenever you speak with cleaners about a referral program we always say I know, I know, I know how important they are to any carpet cleaning service. The thing is when you ask how much money are you spending or what percentage of your marketing budget is dedicated to referrals, you hear a different story. I would bet most spend less than 10% or even less than 5% of the total budget.
If a referral program is so important to marketing than why do most of us spend so little money? I think if we can show the power and effect visually it is a lot easier to understand and hopefully really sink in. When you build a referral tree you are able to see the total impact. The value is not just with direct connections but the total impact of every connection or every job. Just 1 connection can lead to 13 jobs!
In this first example the impact was kind of small, Nathan referred 6 jobs directly but they referred 2 more so the total impact was 8. Now this wasn’t a huge payday but nice. In this next example Keith connected our company with only 3 people BUT the total impact was 12 jobs. A great return in most people’s eyes. See Nathan sent us to Stacy who then hooked us up with Jason and he ends up being a social superstar. This can become confusing for a second but most of us understand the final tally of 12 jobs.
Something to really think about is who and how we reward referral sources. I might want to double back and not just Thank Stacy but also the original customer that planted the seed Keith. This is not just about giving customers a financial reward but also a simple thank you card or phone call. I would be pretty excited and want to contact Keith and say Thank You, do you know you connected me with your friend Stacy and it ended up leading to meeting 12 new customers.
With any marketing campaign or investment we are not going to see great returns on every single one. Here you can see these two customers only referred 1 person and thread stopped. Marketing is a numbers game and if we keep planting those seeds a certain percentage are really going to pay off.