Using Referrals to Grow Your Environmental Business

Thursday, January 14, 2010 by Paul-Cochrane

Effectively utilizing referrals is one of the fastest ways to grow a business. Referrals are one of only a few ways available to both large and small environmental companies to increase their sales without investing additional financial resources.

Many business owners believe that by simply doing a good job for an existing client that they will become an automatic referral source. Offering a high quality service or product is a must, but companies need to do more than that. To truly maximize referrals, companies need to know how to ask for them and to look beyond just their customer base.

Starting with a company's customer base as a source for referrals is natural and they are typically readily available, but don't forget the other referral sources that exist. One of the best sources for an environmental or IAQ business to develop for a long lasting source of referrals is often people that they already refer business to.

For example, a mold remediation company may develop a relationship with several reputable plumbing companies whom they refer plumbing work to. These same plumbing companies undoubtedly come across situations that may warrant mold remediation work. By developing referral sources you are building a long-term relationship with a business person who is motivated to return the favor and when that happens, both companies win.

By creating these types of reciprocal relationships, you are also answering the biggest question in the minds of those you hope to refer business to your company, "Why should I refer business to company X?"

When communicating with potential referral sources don't forget the simple act of directly asking for the referrals. Don't assume because you have developed a good relationship or have done great work that others will automatically think to refer your company. Always ask for referrals.

There are additional things to consider when maximizing your referral base: 

• Become a low risk referral by offering guarantees
• Offer something the competition doesn't have or provide
• Cross promote your business with other complimentary businesses

One final important task to keep in mind when building a referral network is to never forget to thank someone who has referred business to you. A simple phone call or email may suffice or perhaps consider thanking them in a bigger way that shows you appreciate their efforts.

Cochrane & Associates, LLC, the environmental, mold and indoor air quality industries' only dedicated marketing, public relations and business development consulting firm works with clients to develop ways to maximize customer referrals. We hope you consider making referrals a prominent part of your company's business development strategy.