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Managing Your Restoration Business

Getting Client Promises but Never Getting a Referral

By Dick Wagner
referrals

Photo credit: YoGinta / iStock / Getty Images Plus via Getty Images

September 22, 2023

In the fast-paced world of the restoration business, securing a client’s commitment to send referrals is considered a significant milestone. When a potential client expresses enthusiasm, acknowledges your suggestion, and even gives verbal assurance of awarding you their referral business, it's natural to feel a sense of success and even relief. 

However, what follows can sometimes be baffling: the client who seemed so sure suddenly develops cold feet, leading to the puzzling scenario known as the "Warm Hands, Cold Feet" phenomenon. Despite all signs pointing toward a seemingly sincere promise, marketers often find themselves losing to the dreaded "no decision." They promise one thing but never follow through. This trend sheds light on the difficulties of decision-making in today’s business landscape.

 What are you waiting for?Getty Images/iStockphoto

The "Warm Hands" phase of this situation represents the early stage, where everything appears to be going in the right direction. During this phase, you've successfully built a rapport with the customer, identified any needs, and proposed a solution to help them take care of clients. You've presented a compelling case, demonstrated your expertise, and perhaps even got them to acknowledge that referring projects to you would make sense. The client’s willingness is obvious; they admit there is value in what you provide, and you leave the meeting with the comforting assurance that they will start referring you.

However, as time passes and the client has a chance to reflect on their decision or promise, the "Cold Feet" phase sets in. Or they just simply revert back to their original position of status quo – doing nothing. The enthusiasm that was once so apparent begins to fade. This phase can be immensely frustrating for marketers, as they’re left in a state of limbo, not getting referrals, and not able to predict the final outcome. The client's initial willingness is replaced by hesitation and maybe even laziness! This possibly leads to never getting a referral from them. It’s ultimately no decision at all.

Several factors contribute to the "Warm Hands, Cold Feet" spectacle. First, the modern business landscape is presented with an overwhelming abundance of choices. Clients have access to many contractors, making the decision-making process more difficult than ever. In this situation, it's not uncommon for a client to express interest in multiple contractors at the same time, resulting in each marketer trying to out-do the other. As a result, even when they verbally commit to one contractor, they may continue exploring other options, further leading to the client getting cold feet.

delayed decisionsAlso, the fear of making the wrong decision often paralyzes clients. In an era where information is readily available, clients are bombarded with data, reviews, and recommendations. This wealth of information can lead to analysis paralysis, where clients become overwhelmed by the need to make a perfect choice. As they deal with the fear of making a costly mistake that could negatively affect their business or them personally, they may delay their decision indefinitely, opting for the perceived safety of "no decision."

Besides, executive dynamics can also play a significant role in the "Warm Hands, Cold Feet" experience. A client who initially appeared eager to proceed with your proposal often encounters resistance or skepticism within their own organization. Strong opposing opinions, alternative relationships, or internal politics can lead to delays and uncertainty, causing the customer to backtrack on their commitment.

In some cases, the "Warm Hands, Cold Feet" fact can also be attributed to the absence of a clear decision-making process within the client’s company. Without defined criteria or a structured evaluation process where they have good comparisons, the client may struggle to refer you, leaving their promise in a state of perpetual limbo. To mitigate the impact of this situation, marketers must adopt a proactive approach. 

Here are some strategies to consider:

Build Strong Relationships: Invest time in building genuine relationships with your clients. A strong rapport can help develop and maintain their trust and commitment even during moments of doubt.

Clarify the Decision-Making Process: Work closely with the client to create a clear decision-making process within their company. Confirm that key stakeholders are aligned and that everyone understands their roles and responsibilities.

Provide Value Throughout: Continue to demonstrate the value of your solution throughout the decision-making process. Share case studies, success stories, Yelp and Google reviews, and testimonials to reinforce the benefits of choosing your company.

Address Concerns Head-On: Encourage open and honest communication. If the client expresses doubts or reservations, address them promptly and transparently. This will help ease their concerns and keep the momentum going. Even going so far as to suggest they may not be a good fit for what you offer if they are too hesitant. 

set milestonesGetty Images/iStockphoto

Set Milestones: Establish milestones to create a sense of urgency. Setting clear timelines can prevent the decision from lingering in the cold feet phase indefinitely. Consider suggesting that you both review the status of the referral in 30 or 60 days to see if there really is a good fit.

Finally, the "Warm Hands, Cold Feet" experience is a difficult test that marketers often face in the pursuit of getting referrals. It highlights the complexity of decision-making in the modern restoration marketing landscape. You’re dealing with an abundance of choices and contractors, fear of making the wrong decision, and internal organizational dynamics can all contribute to uncertainty and delays. To find the way through this frustration successfully, marketers must adopt proactive strategies that focus on building strong relationships. They have to clarify the decision-making process and provide ongoing value to their clients. By doing this, they can increase their chances of converting warm hands into satisfied clients instead of losing to the dreaded "no decision."

See more articles from our October issue!

KEYWORDS: business practices restoration business development restoration company referrals

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Dick Wagner is cofounder of The CREST Network, LLC, a Commercial & Residential Education Support and Training coaching company. He is also president of the SCRT and a Florida Guardian ad Litem, advocating for foster children.

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