5 Things Contractors Should Do Before Calling a Referral

Getting a referral can make you feel over the moon. You've just been handed a free lead, someone who is very likely interested in hiring you for a project. Not to mention, being referred means that the referrer was pleased with your services, and that they've given you their stamp of approval. What could be better? 

As exciting as this is -- and as much as you may want to call the referred customer right away -- there are important things to take care of before you do. Otherwise, you might come off as underprepared. And this is one client you do not want to lose. In fact, a recent study on referrals showed that referred customers were both more loyal and more profitable than regular clients, as they had more incentive to trust the recommended company*. 

With that being said, here are five things to do before you pick up the phone. 

Decide when to call.
It's true that time is of the essence in the case of referrals: about 88 percent of converted leads are contacted within 24 hours of being referred. Still, it's vital that you block out a good time to make contact. If you've just come across a new referral, but you know you've got to leave for a bid soon, now is probably not the right moment to call. 

Plan ahead and give yourself ample time to chat. This will help you to avoid sounding rushed, and the client will appreciate your full and undivided attention.

Grab a pen and paper.
Having to scramble to find materials during a conversation is a pain. It's also a little embarrassing. You don't want to be saying, "Hang on, hang on" as the customer is trying to give you essential details about the job. 

Before you even sit down to make the call, ensure you're ready to talk business by having everything you need in front of you. This will usually include writing materials, client contact information, references, and your personal schedule. And speaking of which...

Get familiar with your calendar.

Look for some possible dates that you could schedule an estimate. As you know, not many people will hire a contractor via telephone. And in order to get a feel for the project, the customer's expectations, and the cost of the job, you'll need to spend some time talking with the client in person. 

Prior to calling, come up with several specific times when you'd be free to do a bid. Make note of them, and run them by the client when the moment feels right. By determining a number of potential dates, it's likely that you'll come across a time that works for both you and the customer. 

Of course, the client might not be ready to move forward right away. If this is the case, find out when it would be a good time to try again, and put a note in your calendar.

Have some numbers ready.

Your customers want to be certain they're working with a professional, and many of them will ask questions about your company and the work you do. As such, it's a good idea to have some numbers on-hand. Be prepared to answer questions such as: 

How many years have you been in business?
How many projects have you completed locally?
What is a ballpark figure for the cost of the project?
How long does this type of project typically take?
What is the tentative daily work schedule? How many people will be working on the job? 

Have a ready response to these queries will keep you from having to fiddle with your calculator or look through records while you're on the phone with the client.

Prepare for a second phone call.

In a perfect world, every referred customer would answer on the first call. But just like you, your clients have busy lives, and they're not always available to talk. This doesn't mean you should give up -- on the contrary, it means you should set aside a time to ring again. 

Calling a lead twice more than doubles your likelihood of making contact, which makes for a better chance of closing a sale. If you don't get through on the first attempt, leave a message and then set up a time that week to make a second call. Chances are, you'll be glad you did. 

* Schmitt, Philipp, Bernd Skiera and Christophe Van den Bulte. "Do Referral Programs Increase Profits?" GfK MIR 5(1): 2013

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