From my experience I have found giving incentives to a customer for a referral does not make a noticeable difference. Usually if a customer is going to refer you to a friend, they are going to do it anyway, and don’t need an incentive to do so.  The added incentives of “$5.00 off your current rate” or “one free mow” do not seem to make a difference.

I believe the best way to get referrals is to keep your customers happy.  Most of the referrals I have gotten even when I offered the program did not even mention the discount.  Naturally, if they are happy with their service and someone else inquires about it, they will mention you.

However, it always helps when you are doing an estimate to mention that you are looking for new customers. People generally are responsive to this sort of approach, and rather than referring you when a neighbor asks, they may go out of their way to recommend you to a neighbor if they like you.

It also doesn’t hurt to give them a little “thank you” for the reference. If I gain a new customer on behalf of a different customer, I make sure at the least to personally call and thank them. Thanking them will probably make them like you even more and may further encourage them to help you out in the future.

For more suggestions see below: