Referrals: Why They’re Important for Your Construction Company and How You Can Increase Them
It’s not uncommon for a construction company to feel that they’re out of options when it comes to increasing business. One study showed that the average construction company closed just two out of every ten jobs they bid on. This is a rate that could lead to some companies simply going out of business.
Read on to learn some ideas from Geyser Equipment about how you can maximize jobs that require the use of hot water pressure washer, and then reach out at 951-509-9269 or online to find the best equipment for your job.
The future of construction is not in lead generation
If you’re spending all your time looking for leads then you may be wasting your home. We talk to construction companies that say that even when they bid as low as they possibly could, inevitably another company underbids them by at least 30%. That’s why this process simply won’t do anymore. That’s why the focus now should be on referral sourcing.
Use referral sourcing to increase your conversion rate
If you’re tired of a 20% conversion rate, then you’ll be glad to know that for many companies, focusing on referrals has increased their conversation rate to 50% – or even higher. The main difference between the two is that when you get a referral, the source that refers you has already done the footwork. The potential customer already has a bias toward you and is more likely to hire you, compared to a cold lead.
Making the most of referral sources in your particular marketplace
Finding the right referrals will require a little bit of thinking and a lot of practicing. At Geyser Equipment, we’re here with a list of some of the most common referral sources. However, which of them will work for you will depend on your location and the type of equipment and experience you have. Some great options include:
- Water damage companies. Some do it all and others refer their clients to other companies for specialty work.
- Government agencies. Some government agencies are currently offer grants of as much as $70,000 per job, but the homeowner’s going to need a company who can handle the work. Be that company.
- Insurance carriers. Insurance carriers can do more than refer you – they can directly give you the work.
- Niche markets. Take a look around your community to see who has some niche needs. For example, offer to take your cold water pressure washer and clean up at an assisted living facility. A few hours of volunteer work could net you a lot of referrals as long as people know who did the work in the first place.
These are just some referral ideas. The best option for you is to think critically about your area and what the needs are. Then think not of how to get to the customer directly but who they’re likely to go through. If you need assistance getting the equipment that will make this task easier, then reach out to Geyser Equipment at 951-509-9269.
