$4,800 To $749,000

Publisher1

Toronto-area renovator Peter Danis at Kara Construction/The SPG Group turned a $4,800 client appreciation dinner and cocktail reception last summer into $749,000 in new business.
The idea is so simple that I think you will be able to replicate Danis' success if you have a good reputation with your clients and a simple, structured referral program.
He sent out 145 invitations and 85 responded. Dinner cost about $3,600. The former clients signed up for $285,000 in repeat business.But in a really creative extension of the idea, he invited guests to bring their friends to a cocktail reception after the dinner (rsvping in advance). The add on cost: $700 -- but the friends referred this way signed up for $464,000 in referral business.
I report on this idea this blog posting: Recognition and referrals: The $749,000 success story.

outlaw

I have heard of this type marketing.

To make it work, you must track your refferals to indicate which of your past customers are really reffering you. You must also know what they are saying about you. Something along the lines of "he's expensive, but he's well worth it" is preferrable.

Leo G

It would take me 6 years to do all that work. Sounds like if you are a bigger company it could work for you. As a single man company I don't think this would be the best scenario. Maybe on a much smaller scale, say 30 people.

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http://lrgwood.com
Custom Cabinets in Hartford County Connecticut

Publisher1

Obivously, there are some advantages of scale for this type of program -- the networking effect of the larger group, and the validation of many enthusiastic clients probably has exponential value in effectiveness.
But anyone can bring a gift basket and bottle of wine to the home when a job is done, thank fo rthe business, and then explain the simple rebate/referrral option Danis uses.
And if your client list is 50 rather than 150, I'm sure you can stage a smaller but undeniably effective event. The point here is that contractors who 'rely' on referral and repeat business should consider approaches like this to systematically encourage it. The payoff is huge -- and is far more satisfying, in my opinion, than conventional advertising or pounding on stranger's doors.

Carport King

Wow great Idea this is just what we need right now. Never thought of it. We have had some contractor parties at our office to showcase our outdoor living area but this would take it to a different level.

Thanks

smadax

Awesome idea this guy took the risk and it paid off! I have alot of respect for people with this type of creativity and the courage it takes to follow through without any guarantees.

mnjconstruction

This is a nice idea, but I'd rather just have a big ass bbq at my house, steak, burgers and dogs!!!

SquirrelNmoose

Wow, what a great idea. Get all your referrals live and in person in front of potential new clients.

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Len,
"There is no charge for Awesomeness"
A view through the eyes of SquirreNmoose