Referral Program 101: Best Practices for Builders

So, you've got your referral program all set up, but how do you get the word out and make it a success? It's not enough to just launch it; you need to promote it to reap the rewards. 

Consistently reminding your clients of your referral program is key to getting those valuable referrals. 

We’ll outline the key strategies and tactics to help you not just run, but master your referral program. 

The Goal of Your Referral Program

Focus on two things: incentivizing referrals and making your program easily accessible.

Incentivize Referrals

Imagine someone asks you for a referral, but there's nothing in it for you. You might do it out of goodwill, but it's more likely if you're incentivized. The same goes for your customers. In fact, 65% of customers are more likely to refer someone when there's a direct incentive. So, the first step is to set up a rewards program.

Locorum makes it easy to set up a marketing budget within your referral program. You can set variable or fixed budgets, but fixed budgets of $2000 or more are most common for builders. 

Make Your Program Available

If your referral program is hard to find or understand, clients are less likely to participate. Make it as easy as possible for clients to find and join. We'll discuss where to put your program later, but make it available so clients can find it when they need it.

When to Reward Clients

Choosing the right time to send rewards is crucial. Send them early enough to keep clients happy but not too soon to reward clients who don't convert.

Most programs are set up to reward when a deal closes. However, you can also choose to send the reward when the buyers sign the contract or when the home is complete. We recommend choosing the stage that you're most comfortable with as early as possible. 

Your goal should be to reward as close to the action as possible (i.e., rewarding at contract sign), even if it’s just a small thank you reward with Locorum’s virtual card to reward them instantly. 

How to ask

When it comes to asking for referrals, there are two approaches: asking directly or mentioning it more casually. Asking directly can sometimes feel like a hard sell to your program. While this approach is effective when you have a satisfied client, be mindful of their comfort level.

A softer approach, on the other hand, is often more appropriate and can be more effective in the long run. Remind clients about your referral program during regular interactions. The key is to mention it as much as possible without being pushy. That way, they’ll remember your program when they know someone looking for a home.

In both cases, highlight how your referral program benefits the client. For example, emphasize the rewards they receive for a successful referral and give recommendations on how they can use it. This helps clients see the value and encourages them to refer others.

Where to Promote Referral Program

Visibility is key. Feature your referral program across all marketing channels, from your website to social media. Make how to participate clear and encourage clients to do so. 

If you don’t know where to start, don’t worry. We’ll go through every place you should consider promoting your program.

We even have a checklist you can download and save for later to keep track of your progress!

What Everyone Should Do

Start by incorporating your referral program into your existing marketing collateral. The goal is to continually remind clients of your program and make it easily accessible. Every business should incorporate all the following options.

1. Website
   Feature your program on your homepage and in your navigation bar so clients see it every time they visit. Create a dedicated section that explains your referral program and its benefits, with a direct link to your custom URL from Locorum.
   
   
2. Sales team email signatures
   Add to your team’s email signatures as a reminder every time they send an email. Include hyperlinked text with messaging along the lines of “Refer to me: Click Here” or “Send a Referral, Get $[Reward].” Here's how to add it. 
   
   
3. Business cards
   Add a QR code to your physical business cards or a link to your virtual ones. This way, every time you introduce yourself to a new customer, they’ll see your program.
   
   
4. Phone contact
   Link it in your phone contact information so everyone you share your contact with will get your referral link. Learn how here. 
   
   
5. Social bios
   Add it to all your social bios with Linktree. If you don’t have a Linktree yet, it’s a free resource to compile multiple links within one URL. We recommend adding your referral link alongside other relevant links. We even have it on ours!
   
   
6. Emails and newsletter
   Include your referral link in your emails, including your monthly newsletter (which you should be sending if you’re not already) and any other email campaigns. There are a few ways to do this, but we recommend adding it to your footer, signature, or banner graphic in each email. Here’s how we include it in our email signatures:

Referral Launch Announcement

Next, announce your referral program through email and social media. Start with an email blast to all past and potential buyers. Introducing your program, highlight its benefits, and include the program link.

Pro-tip: Locorum offers a variety of email templates for announcing your referral program. Simply choose one and add your details!

Next, share the announcement across all your social channels, including Facebook, Instagram, LinkedIn, and X. Repurpose copy from your email blast, along with an eye-catching graphic. Remember to include your program link or where to access the referral program. Remember to include your program link or where to access the referral program.

For ongoing promotion, continue posting about it on your social media channels regularly. We recommend posting every month to remind clients about the program.

New Email Campaigns

On top of your monthly emails and the launch campaign, here are some other campaigns to consider.

1. New Site Launch Campaigns
   Whenever you have a new site launching, send an email about it along with a link to your referral program. Someone who didn’t want to refer a friend to a previous site might have the perfect client for your new one. 
   
   
2. New Phase Campaigns
   This is our number one recommendation for email campaigns! If you’re building an apartment building or complex, consider sending out emails to the buyers of previous phases when each new phase starts, including updates and a link to your program.
   
   
3. Warranty Reminder
   Many builders avoid sending reminders when warranties are coming due. Reminding buyers about it shows that you’re not trying to avoid it and improves trust, making it a great time to mention your referral program. 
   
   
4. Home Buyer Tips
   Consider a one-off or series of emails that include tips for homeowners. Send a “How to Maintain Your New Home” to give them valuable tips along with your referral link. 
   
   
5. Periodic Check-Ins
   Consider going the extra mile by adding workflows to check in on past buyers. Set the emails to be from your sales team asking how everything is and mentioning your referral program.

Physical Marketing Materials

Let’s go through some physical marketing collateral where you can promote your referral program. As part of your Locorum subscription, we can generate a QR code for you to include in the following materials (reach out to learn more). 

1. Posters in Showrooms
   Create eye-catching posters and place them in your showroom.
   
   
2. Signs in Open Houses
   Place signs at open houses to attract potential clients.
   
   
3. Banners at Trade Shows
   Use banners at trade shows to promote your referral program to a wider audience.
   
   
4. In Front of Modules on Boards
   Place signs in front of modules to encourage visitors to scan and learn more.
   
   
5. Brochures and Other Marketing Materials
   Include information about your referral program in your brochures and other marketing materials.
   
   
6. Spec Sheets
   Add a section about your referral program on spec sheets for potential buyers to see.
   
   
7. Postcards to Send Customers with Swag
   If you send swag to clients, include a postcard with information about your referral program.
   
   
8. Apartment Door Hangers
   Distribute door hangers in apartment buildings you’ve built to reach past buyers. Or, try it with tenants. 
   
   
9. Company Vehicle Magnets
   Use company vehicle magnets to advertise your referral program while on the go.
   
   
10. Neighbourhood Signage
    Post signage in the neighbourhoods of your sites to increase visibility and encourage residents to refer their friends to nearby homes.

Incorporate your referral program into as many marketing materials as possible to get in front of past or potential clients 

In-Person Asks

When meeting with clients, whether in person or over the phone, talk about your referral program. This approach, while more direct, adds a personal touch to the request.

At Milestones

Mentioning your program at key milestones greatly increases the chances of referrals. Consider asking when clients are likely to be most satisfied.

1. Contract signing
2. Post deposit
3. Inspection date (only if it’s a positive inspection!)
4. Possession date
5. One week after move-in (as move-in day is often hectic)

Referrals from Referred Clients

Asking people who were referred to you is a great strategy since they are already familiar with the process. In fact, referred customers are four times more likely to refer friends. 

After they’ve had a positive experience, whether they bought from you or not, is a great time to ask for referrals. Let the conversation flow naturally, and consider bringing it up at the end of your meeting. 

When Clients Aren’t Interested

Ask people who aren't interested in buying from you if they have friends in the market. Just because this home wasn't the right fit for them doesn't mean it won't be perfect for one of their friends. Everyone appreciates rewards, so why not offer them? Be cautious and only mention your program to people who have a positive impression of your business.

Additional Promotions

Launch a promotion on your promotion to boost engagement even further. Think of it like Starbucks, you earn stars for every purchase, but on  "Star Days," you earn extra rewards.

For example, if you usually offer $2000 for a successful referral, create a limited-time promotion where you'll offer an extra $500 for any referrals made during that month. This will give clients a little push to actually refer their friends instead of only thinking about it. Use email campaigns and social media posts to announce your promotion 

Running a successful referral program requires more than setting it up and hoping for the best. It demands consistent promotion and strategic implementation to achieve its full potential. But don't worry; Locorum is here to help. Did you know that we offer a dedicated onboarding manager service to help you get started?

If you need assistance setting up and promoting Locorum, contact our team — it’s like hiring a referral marketer for a fraction of the cost!