The Secret to More Interior Design Referrals: Transcript

Katie Decker-Erickson [00:00:05]:

Do you love interior design but can't make the business side work? You've come to the right place. Welcome to Success by Design. Mastering the business of interior design. Whether you want to elevate in your current interior design firm, start your own firm, or move the needle when it comes to your existing firm's trajectory, this is your masterclass and I'm your host, Katie Erickson. Learn from my mistakes as I built a coast to coast, multi million dollar interior design firm. I share nearly 20 years of serving as a university professor of undergraduate and graduate business courses with you. And best of all, I bring in experts in all things business and interior design. Class starts now.

Katie Decker-Erickson [00:00:45]:

Hey everybody. Welcome back to the show. And we're kicking things off with our two truths and a lie. So which one is the imposter? Number one, over 80% of interior design referrals come from past clients and personal relationships. Number two, offering free consultation to realtors is the fastest way to build a profitable referral pipeline. Or number three, most designers don't have a formal referral strategy. They rely on word of mouth and hope for the best. Well, stick around.

Katie Decker-Erickson [00:01:15]:

I'm going to reveal the answer at the end. And welcome back to our series, Project to Profit. We're talking about building your referral engine from one client to many. Because if you've ever wrapped up a gorgeous project, waited for referrals and heard crickets, well, you're not alone. What if one client didn't just lead to a pretty portfolio photo, but to three new dream projects? Relying on chance based referrals can create major income gaps in your business. You need a referral engine, not just word of mouth. And today I'm going to show you how to turn your happiest clients and a few smart partnerships into into consistent pre qualified leads, including how to work with realtors the right way using a very great process. All right, let's talk about how happy clients are your secret sales force.

Katie Decker-Erickson [00:02:11]:

Think about this. Your happiest clients are sitting on your next six figures in revenue. When you start framing it that way, it starts to get real. When I guide designers through this in private coaching, one of the first shifts we make is is from passive to proactive referrals. Here's a really interesting statistic for you. According to Nielsen, people are four times more likely to buy when they are referred by someone they trust. Because people move both personally and professionally, and much like bees, they carry ideas, relationships and opportunities with them, spreading value wherever they land. One of my favorite examples of this comes from an asset Manager we loved working with.

Katie Decker-Erickson [00:02:55]:

When he took a role at a new company, he brought us with him to lead the interior and exterior design there. Well, later, when his original firm recruited him back, we had the chance to continue collaborating with him in his familiar setting. But the best part, the new company he had moved to also kept us on board. It was a true win win. Relationships deepened, trust carried across firms and everyone benefited from the continuity. Like I said, they're just like bees, right? They're cross pollinating. And that movement created growth in more than one place. So here's your takeaway.

Katie Decker-Erickson [00:03:35]:

Your past clients aren't just finished projects. They're future pipelines. This is why it is so important to value the relationship and work to give them a satisfactory experience, start to finish. In fact, we're going to be talking about that next week. Okay, let's talk about creating a referral ready experience. Here's the deal. If the experience doesn't wow, then people don't share it. That's why I work with my coaching clients on creating what I call a referral ready experience.

Katie Decker-Erickson [00:04:07]:

As I mentioned, it's one that's smooth and, and stunning. And most importantly, based on what we're talking about today, it's shareworthy. In fact, 83% of satisfied clients say they refer, but only 29% actually do. That is a 50% plus difference. Why? They have no prompt, no system. And let's face it, folks, we don't act unless we're called upon to do so. By the time the holidays roll around, for instance, most people are gifted out. So here's what I want to share with you about what we do at our firm.

Katie Decker-Erickson [00:04:43]:

December brings a flood of corporate presence. And while they're kind, let's face it, they often blend together and get lost in the shuffle. I can't tell you how many cards I get from various insurance companies that are signed in fake ink, printed off a printing press somewhere. And if they're lucky enough to get me to open the envelope, they go immediately in the trash. That's why we shifted our focus to Thanksgiving at our firm. For us, Thanksgiving is the perfect moment. It's already a season of gratitude. A time when families and friends gather and when our clients often have company coming into town instead of another branded item or something that sits on a shelf.

Katie Decker-Erickson [00:05:22]:

We love giving food. I'm a foodie. Are you one too? The reality is, a lot of us are. It becomes something they can share, enjoy, and remember. So one simple strategy we use is partnering with a gifting company to Send a high quality, thoughtful gift to each of our clients each Thanksgiving. It's practical, it's personal, and it communicates our appreciation at exactly the right time. In fact, our favorite company lets the client choose what type of food item they want to receive or package year after year. I will tell you, this tradition has proven to be more than just a kind gesture.

Katie Decker-Erickson [00:05:58]:

It is also keeping us top of mind or top of consciousness, right? It's deepening those relationships and it sparks ongoing loyalty and referrals. Truthfully, it is a small investment, a simple act of gratitude, and it often yields a big return in trust and connection. Your takeaway for this thought is be referable first, but then we're going to start building systems around it. I want to talk with you next about the strategic Realtor partnership, what I call the VIP consult strategy. In business, there's always this temptation to think of others as competition. But sometimes the smartest move is to see them as allies. Take high end Realtors, for example. The best ones are chasing the same clients.

Katie Decker-Erickson [00:06:44]:

You are people who care deeply about how their homes look, feel and perform. They know the design sells. They know that lifestyle drives decisions. And they know that having the right partners makes them look even better to their clients. When you build relationships with these realtors, something powerful begins to happen, and that is this. Instead of knocking on cold doors, you start receiving warm, very warm, sometimes hot introductions. They've already established trust, they've already done the hard work of connecting. And when they bring you in, you arrive with credibility before you even say a word.

Katie Decker-Erickson [00:07:26]:

Now, finding the right Realtors isn't about volume, it's about alignment. When their clients win, you win. And when you help their clients shine, they look like heroes too. So this becomes a cycle of trust and service and opportunity that keeps paying forward. How do you make this actionable? What I recommend is give your trusted Realtor partners and if you don't have them, call your local chapter of your Realtors association and tell them you're looking to partner with a few key Realtors who are targeting high end luxury, whatever your target market is clients, and tell them that you want to get partnered with them. Now once you find them, you're going to give them to VIP consultation passes per quarter. So these are not freebies for everyone. And you need to tell the realtors that these are for the high value clients who align with your service model and that Realtors, we're going to put these on a beautiful piece of cardstock.

Katie Decker-Erickson [00:08:32]:

They're going to be in color, they're Going to showcase you as the expert because this makes you look exclusive, and the Realtor looks like a rock star for giving their client VIP access. In fact, did you know this is a random statistic, but super helpful. According to the national association of Realtors, homes with professional staging and design sell 73% faster on average. What Realtor wouldn't want that? Which is why you're not going to hand these out like candy. You're going to be strategic, selective VIP passes. Make your Realtor a hero and turn their clients into your clients. And that's your takeaway. All right? Ask, don't wait.

Katie Decker-Erickson [00:09:17]:

This can be really, really hard. And this is where most designers I see freeze up. You gotta shake it off. You want referrals, but you're too afraid to ask. Okay, let's reframe that. Asking for a referral isn't pushy. In fact, it's professional. And if you need to stand in front of your bathroom mirror and.

Katie Decker-Erickson [00:09:36]:

And say that to yourself repeatedly, I want you to do so. Asking for a referral isn't pushy. It's professional. You're inviting happy clients to become part of your success story. That's a good thing. Now, there's some key caveats around this that I want to dive into. So when should you ask for a referral? First of all, the big reveal. HGTV does it for a reason.

Katie Decker-Erickson [00:10:03]:

Notice the joy on the faces after a big reveal. You'll often hear, this has been such a delight. Right? Oh, my gosh. My home is stunning. Yes. Thank you so much. You can respond. If anyone comes to mind who would love this experience, I'd be honored if you'd introduce us.

Katie Decker-Erickson [00:10:21]:

What a kind and beautiful way to ask them to share. Now, I want you to think about after completion, a few weeks later, reach out and say, I've opened a few spots for upcoming projects. If a friend is dreaming of a transformation like yours, I'd love to chat with them. They are under no obligation to respond to that email. They are under no obligation to forward, but they might go, oh, my gosh. Susie was over for coffee the other day and absolutely loved what I did. Yeah. I will send this designer, I.

Katie Decker-Erickson [00:10:51]:

E. You to Suzy as a potential referral. It's just they need to be prompted. And then back to special occasions. It's a great time to drop an email and say, grateful to have worked with you. If someone you know is ready to elevate their space, I would love to help. So I know you don't want to feel salesy. Nobody does that just feels gross.

Katie Decker-Erickson [00:11:14]:

So how do you ask for this without feeling that salesman 1980s used car lot vibe? We're going to use a technique called the Affirm Educate Invite framework. Working with you was such a delight. You're affirming them. I grow my business mostly through referrals. It allows me to stay high, touch and selective. Now you're educating them about your business. Get ready. Here comes the invite.

Katie Decker-Erickson [00:11:43]:

If anyone comes to mind who'd love a transformation like yours, feel free to send them my way. I'll treat them like gold. How lovely is that? That does not feel like I have been to a used car sales lot circa 1980. Here's your mini takeaway on this one. Your dream clients won't just show up. Ask for them with confidence and clarity. And you know that I am the queen of systems. I absolutely love systems because systems work when people don't.

Katie Decker-Erickson [00:12:13]:

If you do not have your referral network on a system, we need to fix that. It should be on autopilot and you should not be reinventing this wheel every single time. So I'm going to give you four parts to your referral engine system. All right, here we go. First of all, you're going to create a referral email template. You're going to make it warm and clear and customizable. You may include a link or even better, a VIP consult invite they can share because they're probably going to share it with people like them. Second of all, you're going to automate referrals in your off boarding packet.

Katie Decker-Erickson [00:12:52]:

If you do not have an off boarding packet, you need to come book a 15 minute problem solving call with me. It is free of charge and we need to get that figured out for you because we're going to talk more next week about the importance of debriefing and what it looks like to end a project and end it well. For today's case, automate referrals in your off boarding. How do you do it? You add to your final project email or PDF guide a simple couple of lines. I so enjoyed working with you. If someone you care about is planning a renovation or move, I'd love an introduction. Not salesy, not over the top, but extremely effective. All right, part three of this referral engine system.

Katie Decker-Erickson [00:13:39]:

I want you to use referral call to actions in your marketing. For instance, your Instagram caption can say know someone who'd love this space? Tag them. Or if you have a newsletter and a nurture sequence, add a footer with a simple referral ask and Then your fourth key point when it comes to building this referral engine system is is reward and recognize who out there does not want to be rewarded and recognized, right? So you're going to send a handwritten card with maybe a $50 gift certificate to your favorite boutique tucked in. Or you're going to feature them in your stories after you get permission and send a thank you note. People love to be rewarded and recognized. When was the last time you heard someone say, yeah, I didn't want to be rewarded for something? In fact, businesses with a structured referral program grow revenue 86% faster, y'. All. That's only 14% short of a hundred percent than those without a structured referral program.

Katie Decker-Erickson [00:14:47]:

If you are not doing this, you are leaving projects and profit on the table. For years I've heard so many of my coaching clients share almost proudly. I don't advertise. My business is all word of mouth. And while organic marketing and referrals are absolutely powerful, here's the truth. Most of them come to me because these coaching clients do not have a pipeline. While you can be proud that you're all word of mouth, the reality is it's not working or you wouldn't be coming and booking a call with me. Which, don't get me wrong, I'm really glad that you are.

Katie Decker-Erickson [00:15:24]:

But we have to figure this out and build something sustainable and ideally something that can scale. Relying on chance conversations and happy clients to hopefully mention you is not a strategy. It is reactive. And when the flow slows down, so does your business. Okay. That's why I coach my coaching clients and fellow interior designers like you on A3 email referral nurture sequence. Now, after each project wraps up, you should have this sequence running automatically back to systems, systems and Systems. The first email is going to be heartfelt thank you.

Katie Decker-Erickson [00:16:01]:

It's going to be simple and genuine, celebrating the work we accomplish together. The second email goes deeper. It's sharing how much of your business comes from referrals and inviting them to connect with you and with anyone they know who would benefit from the same experience. And then the third email closes that loop, offering a small gesture of appreciation for any introductions they make. So what once relied on memory or manual effort is now an automatic rhythm. It's personal, thoughtful and consistent without adding extra work to your team or to you if you're a sole proprietor, right? What does this result in? This is warm leads flowing in regularly. It's going to give you stronger client relationships and a steady stream of opportunities that keep building year after year. Automation makes it simple, but it's going to be your gratitude that is going to make it powerful.

Katie Decker-Erickson [00:17:01]:

Your takeaway on this is Systems are sexy. Build one and let it do the heavy lifting. All right, let's wrap this up with a quick recap. Your past clients are powerful sales tools. Your job get out there and activate them. Build a client experience the demands to be shared. Use your VIP consult strategically with Realtors who serve your same ideal client and ask for those referrals boldly, warmly and often. And finally, automate your referral strategy so it runs while you sell sleep.

Katie Decker-Erickson [00:17:39]:

Remember, this goes right back to the heart of your business should be working for you, not you working for it. Now are two truths and a lie. Number one, over 80% of interior design referrals come from past clients and personal relationships. That is true. Number two, offering free consultations to realtors is the fastest way to build a profitable referral pipeline. That's our false and I'm going to explain why in just a second. Number three, most designers don't have a formal referral strategy. They rely on word of mouth and hope for the best.

Katie Decker-Erickson [00:18:18]:

And as you know and you may be able to relate to that is true. So why is number two the lie when I'm encouraging you to offer free consultations to realtors? Free consultations aren't profitable on their own. Strategic, selective VIP consults for your ideal clients are where that magic happens. Before you go, if you want help implementing this in your business, I have a gift for you because I see you and I appreciate you listening and sharing this space with me every single week. This is why I'm offering a free 50 minute problem solving call just for you, my loyal podcast listener. It's normally $100 value, but it's yours, no strings attached. Bring one challenge and we'll find one or many breakthroughs. You're going to find a link in the show.

Katie Decker-Erickson [00:19:12]:

Notes and spots are limited each week. As always. If you found this helpful, please follow, rate or share this episode with another designer who's ready to grow from one client to many. And remember, as always, your business should be working for you, not you working for it. Until next time, take care.