How to Grow Your Construction Business with Referrals
How to Grow Your Construction Business with Referrals

How to Grow Your Construction Business with Referrals?


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Growing your construction business is a tough job, particularly in terms of sales and marketing. The sales function is undoubtedly a very time-consuming process with a constant need to fill the sales funnel with new and qualified prospects. Getting the best-qualified leads for your business typically doesn’t come from easy contact with someone but from building strong referral connections.

Now, it’s very important to recognize the main role you play in such situations. For instance, if you have gotten yourself just one new client directly from a referral, that’s when you can slowly get more and more. In order for someone to always recommend your company and your services to another person, their overall experience with your company has to be exceptional. However, this isn’t an effortless thing to do.

Read on this blog to know how you can best grow your business through building referrals.

Referrals Can Help You with Your Business


Client referrals are an exceptional way, if not the best way, to get to your construction business without offering too many resources. There’s a closing ratio, particularly for referred leads and it’s about sixty percent than the ten percent closing ratio for any non-qualified leads. That is why you need to find the best ways to acquire more client referrals as well as the best strategies when requesting a referral from your former customers.

Referrals always make sense both for big and small businesses, especially for the latter. Let’s discover why:

  • Referrals can establish your level of satisfied clients. The cycle preserves with more satisfied clients referring others to your construction business. 
  • Referral marketing lessens your sales cycle and sales expenses. With less time in cold-calling some prospects, your small construction business can solely focus on existing clients and their circle of influence.
  • Referrals can increase sales revenue.

Business referrals from word-of-mouth marketing are very cost-effective and powerful. As the owner, what you need the most is happy and satisfied customers to create a solid stream of referrals. Make sure these are your customers who feel very much compelled to share their whole experience with others. Apart from your clients, focus also on your business and participating teams, especially how you can best manage them. Some of the best ways to supervise them involve using modern task management programs. So invest one!

Increase Your Client Referrals with these Strategies


Again, referrals are not immediately given; they are earned. Hence, it’s important for you to understand that when someone suggested you to another person, it is more than just a referral they are offering – it’s also their reputation. So before you start working on increasing your client referrals, you need to determine first if you are doing the right thing to earn them.

And the easiest way to figure this out is by simply looking at how much your current revenue has been driven by client referral. If you found it minimal, you might need to take a harder look at what’s missing. Next, you need to start making necessary changes to improve client satisfaction further.

Your construction business is comprised of many aspects – from tasks, operations, teams, project management for construction, inventory, referral, etc. If client referrals are already a major part of your construction business today, increasing them more for your business is just a matter of figuring out what to do. So here are ten fundamental areas you have to focus on:

1. Setting the target

In your business, assess the results to improve performance further. Set some clear goals with a timeline and use construction scheduling software to track the status of these goals. For instance, over the next ten weeks, there has to be 10% increase in your referrals. But be mindful that not all of your customers are perfect referral candidates. Hence, look for the top 20% that are very much delighted about your services. These are the people who you can undoubtedly ask for referrals.

2. Client Experience

Make it your top priority to provide each client with an incomparable experience. Surpass their expectations as much as possible. Deliver an estimate much quicker than anyone else. Arrive early and invoice them somewhat lower than the actual estimate. Lastly, leave a handwritten note, etc.

There are thousands of ways to go above and beyond. You have to look for those that work great for you and let them be involved in your process. To make things easier for you and your team, make use of subcontractor scheduling software. Only this software solution can help you track and manage every element in your project, from tasks, updates and especially the involved parties.

Experience this specialized software and all of its powerful features! Get started with your 30-day FREE trial! 

3. Engagement

Be proactive and always check in with your previous customers. Send surveys and ask for feedback regarding their experience with your services. Don’t forget the referrals. In fact, only twenty percent of those that are very obliged to endorse you will undoubtedly do it without being asked. Accessing the other eighty percent is at times as simple as just asking.

Inspire your clients with random emails showcasing your previous projects. Genuinely reach out to remind them that you are always available whenever they need you. Having a presence of mind is a great effort well spent in this area. 

4. Communication

Familiar with ABC? (Always be Communicating). No one ever complains when it comes to over-communication. In fact, any of your clients wanted to be fully involved in the renovation or building process. And by having them involved and constantly communicating with them, you are increasing the odds that they will send their referrals to you.

Being involved means knowing every process and get updates from projects. You can use cutting-edge software for project task management where the involved parties can easily communicate and exchange information about the project’s development. It acts as a central hub which is very advantageous for all the parties.

5. Determine the right type of customer

Make sure to inform your referring clients of the customer type you can help with. Ensure to provide a clearer picture of the client’s demographics because it will help you more with your referral marketing. You can also give some of your clients some follow-up support and extra service. When you give willingly to your clients, they will gladly return in favor.

6. Perfect Timing

Conventional sales wisdom has claimed that the best time to ask for a referral is right after the close. This particular strategy is found aggressive to some. So give your clients the time to fully experience your product/service before asking them for a referral. Make sure to ask for a referral at close once your client has already been ecstatic with your services.

7. Create a reward program

Your regular referring clients deserve some special rewards. Provide them because that can help you with your business. If the client gives you five sales and asks for more, offer them anything special like discounts. Giving your clients discounts will leave a good impression on them. And the more you give them a lasting impression, the more they wanted to refer your services to the other people they know.

8. Always remind your clients why your services are special

There are several construction companies apart from you in your area. The question is, what makes you unique from them. How can you stand out from the rest? This is the opportunity for you to remind your customers they have made the right decision in picking you. This is also why Number 7 is very important – being part of the reward program and giving discounts is an excellent reminder that your services are made special for your customers.

Find new ways to surprise and thrill your clients because you will earn their respect and goodwill over time!

9. Never forget to say Thank You

There has to be a sense of trust to build long-lasting referrals. Sometimes, trust can be established in small genuine ways of gestures like saying Thank you. Create a thank you letter for your clients and make these letters more personalized. Treat these referral sources of yours with the utmost care. Not only you’re building a solid foundation of trust, but you also keep real prospects coming to your door. 

10. Leverage your Culture

Another way to create a major buzz on your construction company is to show off your culture. Doing so can promote a different referral type, one that continuously grows in your team! Highlighting some of your best projects in an engaging blog post, showcasing your top and experienced talents, proving that you deploy leading software solutions for project scheduling can attract prospects and top skills!

When your company is talked about with the right circles, you never know what decisions they will make by the end. With certainty, they will most likely pick your company and referred it to other people. 

Key takeaways


There have you it, the very same principles and methods used by the most successful construction business in the world today. The most excellent part is, fixing your attention inwardly in this way not only grows your revenue but efficiently building up your company’s name, strong enough to span for generations.

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