Supercharge Your Lawn Care Business Growth with a Killer Referral Program

There’s no debate: customer referrals stand out as a premier method to propel the expansion of your lawn care, landscaping, or tree service company. Industry experts consistently agree that referrals boast higher closing rates compared to most other marketing avenues, and the clients acquired through referrals tend to exhibit greater loyalty and longevity.

Drawing from my two decades immersed in the green industry, I’ve personally witnessed the transformation of a referral program yielding mediocre results into a potent business development engine for a sales team. I’ve also gained insights into the diverse rewards companies offer and the strategies they employ to effectively promote their customer referral programs.

The Green Industry Landscape: Customer Referral Programs Today

Recently, I initiated a discussion on LinkedIn, seeking insights and also reaching out to various companies to gauge their current referral program offerings. My aim was to understand several key aspects:

1. Is a Formal Customer Referral Program in Place?

My experience over the past couple of decades indicates that fewer than half of green industry businesses have a formalized referral program. While more prevalent among lawn care companies, defined programs are less common in landscaping and tree service sectors. Many companies claim to reward referrals, but often it’s more of an ad-hoc gesture of appreciation rather than a structured initiative.

In numerous inquiries, respondents acknowledged having a program but lacked clarity on the specifics, even at the ownership level.

2. What Rewards Are Typically Offered?

Approximately two-thirds of companies with a program, particularly those in the B2C space, had defined rewards. Commercial landscaping companies and design/build firms seemed to approach rewards on a more individualized basis.

Here’s a snapshot of referral rewards currently offered by green industry professionals:

Annual gift card distribution to key accounts, coupled with a referral request (commercial maintenance company).
$50 account credit for successful client referrals (residential lawn care company).
$75 credit for closed referrals, plus neighborhood discounts for multiple sign-ups (residential lawn and landscape maintenance company).
$25 customer credit or a $25 VISA gift card for sold referrals, applicable even to inactive customers (residential lawn care company).
$50 check mailed with a handwritten thank-you note for successful referrals (residential full-service lawn/tree/landscape company).
$25 credit for the referring customer and a $25 coupon for the new referred customer (residential lawn and tree care company).
$35 customer credit for smaller residential landscape maintenance projects, with discretionary credits for larger design/build projects (residential design and maintenance company).
Tiered rewards for residential design/build referrals culminating in a $25,000+ job (VISA gift card: $200 for the first, $500 for the second, and $1,500 for the third referral in a year—or a $1,500 weekend getaway alternative).

3. How Effective Are Current Lawn Care, Tree Service, and Landscaping Referral Programs?

A significant portion of the companies surveyed lacked concrete data on referral volume, associated revenue, or closing rates. While acknowledging that this data might not be readily available to everyone within the company, I found this lack of quantifiable metrics to be quite common. Only about 10% of surveyed companies cited customer referrals as a top-three marketing source. Those who did, confirmed my prior observations: customer referrals convert at an impressive 75-85% rate.

However, when probing further, many industry peers struggled to provide clear, quantifiable results regarding their referral programs.

Crafting a High-Impact Lawn Care Referral Program

When a lawn care company boasts a truly effective customer referral program, it’s palpable. Your team and your customer base will be well aware of it. The program’s effectiveness will be evident to you and your team, and its success will compound year after year.

However, this level of success isn’t automatic. It requires a strategic approach centered around three key pillars:

1. An Irresistibly Compelling Offer

In today’s market, consumers are bombarded with discounts, credits, gifts, and cash incentives aimed at fostering brand advocacy. As more businesses adopt formal customer referral programs, standard, uninspired rewards are losing their power to captivate (remember the underwhelming era of mail-in rebates?).

It’s time to stand out. Are you offering a reward that feels like an afterthought? Your customer referral program is a prime opportunity to differentiate your lawn care business from competitors. Would your reward genuinely excite you? If so, would it resonate with your spouse or a close friend? Seek honest feedback. What you perceive as generous might be surprisingly underwhelming.

Personally, I believe a $50 cash reward hits a sweet spot for a referral that typically generates $400-$1,000 in revenue for your lawn care company. While credits might appeal to some, they inherently require customers to spend more with you. Cash, in my view, reigns supreme. But individual motivations vary. Consider the company offering up to $1,500 for a third design/build referral within a year—that’s the kind of offer that commands attention!

However, monetary rewards aren’t universally motivating. A $50 gift certificate to a trendy local restaurant can be a thoughtful and appreciated gesture of thanks.

Consider an altruistic alternative: charitable donations. For a significant referral, such as one leading to a $15,000 design/build project, dedicating at least $100 to the referring client’s preferred charity is a meaningful gesture. This personalizes the thank you in a profound way.

And speaking of personal touches, investing a few moments to write a handwritten thank you card goes a long way. Move beyond impersonal statement credits or generic emails! If high referral volume necessitates delegation, have your receptionist handle the writing, but ensure the company owner’s signature is included.

2. Promote Your Lawn Care Referral Program with Passion

Consistently and tastefully communicate your customer referral program. If your team is unaware of the program’s details and your customers are oblivious to its existence, it’s likely due to insufficient promotion.

Regularly quiz your team on the program’s specifics. Whether they are in sales, office administration, or field operations, a thorough understanding is crucial.

(Above is a great example of how our client, Oasis Turf & Tree, generates customer referrals right on their website.)

Numerous channels and platforms can be leveraged to communicate your Lawn Care Referral Program to customers:

Website: Strategically place a subtle link in the main navigation, dedicate a page to the program, consider sidebar placements, and include it in the footer menu.
Invoices and Statements: Include program details on routine billing communications.
Inserts, Flyers, or Postcards: Utilize print materials for targeted program promotion.
Email Signatures and Footers: Incorporate program information into all email correspondence.
Dedicated Email Campaigns: Design specific email campaigns focused solely on the referral program.
Proposals: Introduce the referral program to new clients from the outset.
Renewal Notices or Pre-Pay Offers: Integrate program messaging into customer retention communications.
Phone and On-Site Conversations: Train your team to proactively discuss the referral program with satisfied customers.
Social Media Posts: Regularly feature the program in your social media content strategy.

Across all mediums, enthusiastically promote your lawn care referral program and integrate it as a core component of your company’s growth strategy and culture. Position your company as one that genuinely “LOVES REFERRALS!”

3. Meticulously Track and Report on Lawn Care Referrals

Nothing deflates customer enthusiasm faster than poor follow-up and inadequate tracking. Remember, referrals convert at higher rates and yield more loyal customers than almost any other marketing method. This demands unwavering priority within your lawn care business.

Ensure referral follow-up occurs within 24 hours, and aim for at least three contact attempts. Establish a robust system for capturing referral information and diligently store it within the customer’s CRM file, tracking progress at each stage.

Connect referral data seamlessly to the new prospect’s record. Upon a successful sale, promptly issue the promised reward. Don’t create any opportunity for your referring customer to wonder about the status of their reward! Delayed payouts, especially beyond a month after the referred project completion, can breed suspicion and erode trust.

Even for unsuccessful referrals, provide feedback to the referring customer. Express gratitude for their trust and willingness to recommend your services, reiterate your ongoing desire for referrals, and communicate the outcome of their specific referral.

Crucially, flag the prospect’s account within your system to account for potential future engagement. Imagine the customer dissatisfaction if they later spot your lawn care trucks at their referred neighbor’s property six months later, after believing the referral went nowhere!

Keep your team consistently informed about the referral program’s performance. Generate excitement around its successes, reinforcing their commitment to promoting it proactively.

Attract More Lawn Care Customers Through Referrals

Profitable sales to loyal, easily-acquired customers are the ultimate objective! For your lawn care referral program to truly flourish, it cannot be an afterthought. Collaborate with your team to brainstorm a truly distinctive (and generously rewarding) offer.

Consider the typical marketing expenditure required to acquire a new customer. Industry benchmarks often place this cost between $100-$150 on average. Why then, would you offer a significantly lesser reward for a qualified referral?

Simplify the referral process for your customers, meticulously track results, and celebrate successes frequently. You’ll be amazed at the surge in referrals your satisfied customers generate in short order.

What is your lawn care company currently doing in terms of customer referral programs? I’d be keen to hear your experiences. Feel free to connect with me on LinkedIn or Twitter to share your successes or pose any questions.

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