For business owners, referrals are one of the most effective ways to grow. They bring in high-quality leads with minimal marketing spend and are often easier to convert than cold prospects. Yet, many businesses don’t have a structured referral system—they simply hope customers spread the word.
Here’s a proven 3-step formula to consistently generate more referrals, with real-world examples from a trades business, an engineering firm, and a service-based business.
Step 1: Create a Remarkable Experience
Why? People don’t refer “okay” experiences—they only talk about exceptional ones (or really bad ones).
How? Design your service so that clients feel valued, supported, and impressed.
Ways to Make Your Business More Referable:
- Deliver exceptional results – The core service must meet or exceed expectations.
- Go beyond expectations – Small, thoughtful touches can turn a satisfied client into an advocate.
- Be professional, reliable, and communicative – Many trades and engineering businesses lose referrals due to poor communication rather than poor work.
Example: A trades business
A plumbing company ensures every client receives a “7-Point Post-Job Report” after service, including photos of the completed work, maintenance tips, and a free annual reminder for a service check-up. Customers love the added value and trust the company enough to refer them.
Step 2: Ask the Right People, the Right Way
Why? Happy customers want to refer you—but they usually don’t think about it unless prompted.
How? Ask strategically, at the right moment, and make it easy for them.
Who to Ask:
• Long-term, happy clients (track positive feedback or repeat customers).
• Business clients who benefit from your service and have networks that need the same.
• Suppliers or subcontractors who work with similar customers.
How to Ask Without Feeling Awkward:
- Time it right – The best moment to ask is when a client is thrilled (e.g., after a successful project, positive feedback, or a problem solved).
- Make it easy – Provide a simple way to refer (e.g., a quick email template or a ‘share with a friend’ link).
- Frame it as a benefit to them – Instead of saying, “Can you refer me?” say:
“We love working with great clients like you. If you know anyone else who needs high-quality engineering service, we’d be happy to help them, too.”
Example: An engineering company
A structural engineering firm completes a large project for a client. After successfully resolving a major design challenge, they follow up with a short email:
“Thanks for trusting us with your project. If you know another company that could benefit from expert engineering, we’d love an introduction. We’ll even offer them a free initial consultation to assess their needs.”
This makes it easy and risk-free for the client to refer them.
Step 3: Reward and Reinforce Referrals
Why? People are more likely to refer when there’s an incentive and it becomes a habit.
How? Recognise, reward, and reinforce referrals to encourage more.
Ways to Encourage More Referrals:
- Referral Incentives – Offer discounts, a service upgrade, or a free inspection.
- VIP Recognition – Send a handwritten thank-you note, or feature top referrers in your business network.
- Exclusive Access – Give referrers early access to new services or offers.
- Gamify the Process – Track and reward multiple referrals over time.
Example: A Commercial Cleaning Business
A cleaning company that services office buildings runs a “Refer & Earn” program. When an existing client refers another business, they receive:
• A $100 discount on their next invoice if the referral signs up.
• A free deep-clean service if they refer three businesses in a year.
This keeps referrals flowing and creates a win-win scenario.
Final Thoughts: Systemise and Automate Referrals
To make referrals a natural part of your business, integrate them into your customer journey:
✔ Automated follow-ups (send an email after a successful job).
✔ CRM tracking (log who referred whom).
✔ Easy sharing tools (one-click referral links or a simple landing page).
If you consistently deliver an exceptional experience, ask for referrals at the right time, and reward the behaviour, your business will build a strong referral pipeline.