Heather Centorbi is a Marketing Coordinator at WTWH Media, the publisher of Solar Power World.
Heather Centorbi / Marketing Coordinator / WTWH Media, publisher of Solar Power World
Referral programs have always been a successful marketing strategy for many types of businesses, and recently they’ve been on the rise in solar, as well. In fact, 90% of the contractors on Solar Power World’s 2014 Top 400 Contractors list reported that referrals are a major part of their marketing.
Referral programs are a method of promoting products or services to new customers. Not only are referral programs helping businesses grow, but they also help build a strong core of brand ambassadors.
A brand ambassador represents a brand in a positive way and is important to a company’s success because they influence new customers and help keep your brand top-of-mind. With brand ambassadors and the power of social media, referrals can transform a business.
Take California-based residential installer Verengo Solar for example. The company (No. 28 on Solar Power World’s 2014 Top 400 Contractors list) has offered the Verengo Solar Referral Program since 2010, and attributes more than a quarter of its business to it. Verengo says developing strong relationships with its clients through excellent customer service is the best way to earn brand ambassadors.
To promote its referral program Verengo Solar uses social media and email communications and asks its customers about referrals during every interaction. Then, as customers share positive experiences with a company to other potential clients, referrals increase and the total cost of acquiring new customers decreases because less money has to be spent on commercials, marketing and other forms of customer acquisition.
“The highest compliment our customers can give us is to recommend us to those they know,” says David Thoreau, Verengo Solar’s public relations manager. “Over time it may result in companies being able to provide even lower pricing to their customers as the cost of acquisition declines.”
California-based commercial solar developer REC Solar (No. 40 on Solar Power World’s 2014 Top 400 Contractors list) also believes that referral programs are important to the solar industry because business owners considering a solar project are faced with a steep learning curve. Business owners need to understand how solar works, what impact it will have to their operating expenses and the return on investment all while comparing competitive quotes. An introduction to a solar provider from a trusted friend or colleague allows for a smooth transition into a new solar project.
A significant portion of REC Solar’s project pipeline is referral-based. The company says customers often refer their colleagues and associates, and this has been a key driver to its growth and REC Solar wants to reward customers for that.
“We put a referral program in place as a thank you to reward our valued customers that have sent additional business our way,” says John Pressley, business development associate at REC Solar.
Like Verengo, REC promotes its referral program through email marketing, its website and verbally to its customers upon successful completion of their projects. (Photo courtesy: Verengo Solar)
4 Tips for Referral Programs:
- Place a company branded yard sign in your customer’s yard upon completion of the project. Ask them to upload a photo of the yard sign or solar installation to your company’s Facebook account. Once the photo is uploaded send the customer a check to thank them.
- Encourage customers to leave a Yelp! Review or a Facebook review of your company and services provided.**
- Take before and after installation photos and promote them via social media.
- Measure and track your incentives to see the
ROI they are providing your business.
For more marketing coverage, check out these articles:
Top Contractors Use These Strategies For Powerful Marketing
5 Keys To Successful Content Marketing For Solar Installers
Now Here’s How To Spend Your Solar Marketing Dollars, Part Two
Spend Your Solar Customer-Acquisition Dollars Wisely, Part One
**Has been changed from original version. Original version encouraged monetary incentives for reviews, but we found that may not be the best advice.