-------- Original Message --------
Subject: Marketing Mistake #2
From: "Larry Brown, CLP"
Date: Fri, January 29, 2010 11:07 pm
To: "TLC Lawn Care"

Hello Again TLC,

It's time for Part II of your 'mini-course'...

'7 HUGE Marketing Mistakes Most Green Industry
Contractors Make - and How To Avoid Them'

I hope that you have been creating, or refining
a USP for your company as we discussed in the
first lesson.

And now let's keep going....

===============================
HUGE Marketing Mistake #2 -
No Formal Referral System

By: Larry Brown, CLP

larry@greenindustrysuccess..com
===============================

I'm sure referrals and word-of-mouth are a substantial,
dare I say, important part of your business.

With that said, answer this question:

Do you have a formalized referral system in place?

Most companies rely on referrals for somewhere between
20% to 75% of their business. Yet,these same companies
give no thought whatsoever to having a system in place
to control referrals.

The best part about referrals is how these customers
come favorably predisposed to you. They'll typically
want higher priced services and they usually will
refer even more profitable business to you.

We've always been taught that if our job quality and
our customer service is good, then referrals will
automatically occur. Sorry, that's just not good
enough.

Of course, assuming you provide a decent service to
your clients,you will gather a few haphazard referrals
but to really increase your referrals you need a formal
and proactive system.You need a way to compel customers
to happily provide their friends, neighbors or business
associates names and addresses to you, and then a
systematized way to compel these referred prospects to
do business with you.

And, a little note printed on your invoices or business
card that says something like "we appreciate referrals"
just won't cut it.

There are two groups of people that you should
consistently ask for referrals.

The first group is your customers and the second group
is your 'circle of influence'.

Your clients, or customers, are the most obvious group
to ask for referrals because they have experienced your
services and have a first hand knowledge of how your
business delivers.. These folks will always be your best
source of referrals.

Develop a system for obtaining referrals first from
your customers and secondly from other influential
people or 'Centers of Influence'

Perhaps the simplest way to harvest referrals from your
customers is to write a simple letter asking them for
their help.

This letter should become part of your routine system
and should go out like clock work at the given time that
you set. Of course, one great time to send out this
letter is immediately upon completion of a job if it's
a one time project such as a landscape installation.

If you provide repeatable services such as lawncare
applications or grounds maintenance, then asking your
customers for referrals several times a year should be
part of your overall marketing plan. And naturally,
the very best time of year to do this is during the
times when your customers will be most happy you.

For example, if you're in the lawncare business, then
the ideal time to ask would be during a month when the
lawn is not in a dormant stage but rather during the
growing season when it is lush thick and green, and
looks its very best.

Now - the second important group that you must work
with to generate referrals is the group we are going
to call your "centers of influence". And, your
"centers of influence" can be broken down into 2
subcategories which we are going to call tier 1 and
tier 2 centers of influence.

Your Tier 1 Centers of Influence are other people who
have a connection to the same people that you serve.
Not your competitors, but other folks who provide
complimentary products or services to your clients.

Tier 1 Centers of Influence can be a very powerful
source of referrals.

To give you an example, let's assume that maybe you
have a chemical lawncare company and that's all you
do.

Your tier 1 centers of influence could be:

- landscape installation contractors who provide
installation and/or maintenance services

- Irrigation contractors

- a tree care company

- a retail nursery owner

- a lawn and garden retail equipment store owner.

All of these people deal everyday with people who are
prospects for your services.

If you're a residential landscape construction
company, then your tier 1 centers of influence should
certainly include home builder, spa & pool contactors
and architects.

Your objective with these tier 1 centers of influence
is for your name (or company name) to be the first
thing that pops into their mind when someone mentions
the word "lawn care", or 'landscape installation' as
in the second example.

In order to accomplish this objective, the first thing
you obviously have to do is form a relationship with
some of these people. I would suggest choosing only
one say...irrigation contractor to start, rather than
trying to nurture a relationship with every irrigation
guy in town.

Remember, we are talking about a relationship here
and that means you'll only get out of the relationship
what's equal to that you put into it, so this will
take some real time and effort.

It will be far more rewarding for you to have 1 really
close friendship than to have hap-hazard relationship
with several.

So sit down with your spouse or business partner, or
your staff and start to think about some proactive
ways that you can start to place yourself in the
forefront of the minds of your potential tier 1
"centers of influence".

Here are a few ideas that should get you off to
a good start:

1.Start to develop awareness to their line of business.
Anytime you run across an interesting article or any
other tid bit of information that could help them with
their business, or that they may even find interesting,
clip it out and mail it over with a nice handwritten
note attached.

2.Become Their #1 Referrer - Before you receive, you
must give. Start sending some referrals their way
and they are almost sure to reciprocate. Think about
any of your clients that maybe in need of their
services right now.

3. Sponsor an all expense paid luncheon where you
invite all of your tier 1 centers of influence. This
will not only benefit you, but will also give them a
chance to develop other relationships which could be
of great benefit to their businesses.

Now let's talk for a minute about your "tier 2"
centers of influence.

This group contains all the people that you come into
contact with on a regular basis.

It includes, but is not by any means limited to:
family, friends, neighbors, other small business
owners, your minister, maybe your doctor dentist and
lawyer...really anyone whom you regularly interact with
who is not necessarily interacting with your ideal
prospects on a regular day-to day basis.

Some of these people may have no idea what you do. Or,
they may know that you are a "landscaper" but may not
know exactly what all the services you offer consist
of, or who you ideal client is.

You should make a point of letting these people know
what exactly you do, and also let them know that
referrals are a big part of your business and that
you would truly value any business that they might
send your way.

Let them know that you are enthusiastic about your
business, and get them excited too.

One great way to promote referrals from you tier 2
circle of influence is to put on quarterly open
houses at your office. If your office is not a
suitable location, then a local restaurant with a
private room should work just as well.

Invite them to a reception or a dinner, and showcase
your business with a simple presentation, and
emphasize the importance of referrals to the growth
of your company.

What about paying referrals fees?

We've all surely heard of, or maybe even considered
paying out referral fees to people who send business
our way. I would encourage you to steer clear of
this type of offering or arrangement.

Fact is, you don't have to offer money in order
for people to refer you so long as you do great
work for your clients and nurture great
relationships with your centers of influence.

People want to brag on you and want to refer you..
People want to be able to help you and help others
by referring you to help them.

Paying monetary referral fees can also lead to
conflict and confusion, and can often lead to
controversy over where a new client or job actually
"came from". Once money enters into the equation,
it becomes extremely hard to track.

Should you choose to go there, do so as only a
last ditch effort, and don't say I didn't warn you!

Establishing a formalized and systematic referral
system is crucial IF you are serious about growing
your business quickly and effectively.

Many contractors actually confuse word of mouth
advertising with generating referrals.

Don't make this same mistake miss out on THE
most powerful and effective way of growing your
business!

In two days, you'll recieve part 3 of this mini-
course and we'll discuss another huge mistake that
contractors make which is 'failing to make doing
business with their company easy and convenient'.

I'll see you then...

Best!

Larry

Larry L. Brown, CLP
larry@GreenIndustrySuccess.com

* * * * * * * * * * * * * * *

GreenIndustrySuccess.com
106 S. Canal Street
PO Box 1587
Natchez, MS 39121

P 800-905-6941
F 601-442-9464

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