Referrals !!!

[Mojo]

If you had to assign a percentage to your business of how much is referral based what would it be ?

One of Virginia's posts got me thinking about this. I know with our business it is based very heavy on referrals, mainly from forum groups or customers mentioning us to their friends. I would take a stab at it and say our business is made up of 60 % by referral's, 20 % from our website and another 20 % based on rally attendance. We do not advertise so that doesn't come into play.

I could be off b y 10 % in any one category but I know we are very dependent on referrals. What do you think your business make up is ?

Chris

[SteveA]

The longer you're around - the higher percentage of work comes from repeat / referral customers.
New customers are great but I always feel like I have to be extra careful with them because we hadn't worked together before and first impressions count. 
SA

[kodydog]

In my business referrals are the best and cheapest advertising. We get about 90% of the jobs that are referred to us. Also our business would die without our established customers. We have considered giving discounts for referrals. Has anyone tried this?

And if we depended on referrals alone our business would slowly dry up. Gotta keep getting those new customers.

Steve makes an excellent point about making good first impressions.

Our bust strategy has been to get out there and meet people. This would include designers, furniture stores and Hobby Lobby have passed out many cards.

I know you like to attend the RV shows. For us Antique shows have been successful.

Has anyone attended a home improvement show? Was it successful?

We've also beefed up our online presence. People are calling about our new web-page. Facebook, not so much but people are looking and responding. So that's good. Yelp has gained some attention as well as Houzz.

Would it sound weird to say I've been an active member and adviser on Upholstery Forum for over 4 years in my advertising? Maybe even add a link?

[Mike]

In NH i got alot of referslls (from people taking in marinas) here there are alot of people come and go  (and don't hang at marinas, so I don't see that referral so much )


Here id quese 40% referal  5% repeat 55% google me

One thing to concider also chris is uour customers are all over, internet  based

Mine  are all people who have a boat and or home in this county.  [more of neighbors talking and that's far less talking then mainas were  )

(EDITS)

[sofadoc]

The longer you're around - the higher percentage of work comes from repeat / referral customers.

Can't say it any better than that.

With each passing year, I rely less and less on acquiring new business through advertising.
I have the free courtesy listing in the YP's, a web site, and business cards........that's it. Easily less than $100 a year spent on advertising.

I hate to put a percentage on it. Because as Hammer says "93% of all percentages are made up on the spot". But here goes anyway:

#1 60% established repeat customers
#2 20% referrals from those repeat customers (#2 customers eventually become #1 customers).
#3 10% drove by and saw my building
#4 The rest from the YP's and my website. I really should ask new customers how they found me, but I always forget to.

[bobbin]

Add me to the list of those who're beneficiaries of referrals.  I do my best on every job and I always worry that maybe it wasn't enough when the 'phone doesn't ring for periods of time that make me nervous.  I'd say 90% of my work is by referral. 

I've never advertised.  But I'm toying with the idea of a small, local ad. to put my name in front of the public.  I'm not sure I'll do it... I have to really think about what I wish the ad. to say and convey. 

[Virgs Sew n Sew]

Since Chris mentioned me in his original post, I'll throw my $.03 (inflation) in. 

At the top of each ticket, I track how they heard of me.  I'm doing this to determine if my Dex listing is worth the $120 each month (phone book/internet).

10% return customers
20% referrals
60% sign in our side yard/on my business vehicle/business cards
10% dex listing

Before I make the final determination on dumping dex, I'm doing to look at the dollar amount as well as the number of sales.  Two (at least) of the dex referrals are big ticket sales so I don't necessarily want to dump them because I had a small number of calls.

Yard sign/business vehicle are the big winner in sheer number of calls hands down.

I love playing with numbers and this is an offshoot of number playing so it's a fun thing for me to look at.  Plus, I want to spend my advertising dollars wisely.

Virginia

[byhammerandhand]

My neighbors are 2d, 3d, and now 4th generation sign painters.   They swear by vehicle advertising.   I've been on the highway and head people call me (only once for "cutting them off." :-) )  and had neighbors stop by when I'm out and about.

Back when I was doing business full-time, I got a lot of "referrals" from Angie's List.  Most of my new customers from there or from work that I'd done for my retail / delivery clients.   You can print off forms that the customer can provide free feedback to Angie's List (even if they are not a member)  and the more hits you get the higher in the search results you go (also if you pay Angie a little bit and advertise with them).   I think now, you can even schedule appointments via Angie's List (to be safe, you'd probably need to assign an open day or windows each week so you didn't get double booked with direct calls).

Yellow Pages ads were pretty much a bust for me.   No one seems to use them any more and they were dreadfully expensive here in town.  I think it was over $300 a month for a business card sized ad.   I can't imagine what the ambulance chasing lawyers have to pay for their back cover, full page, full color ad.