Set up your referrals so that both the person who refers and the person who has been referred benefit. This will insure a much bigger incentive for both parties to send you more business.
Referrals are the most powerful marketing that a company can do, and also the least expensive. Your referral program will have more impact than any other form of marketing or advertising. So spend a little time on setting up a referral program that will address the following three things:
- Your customer’s time and reputation are very important, so make sure referral programs worth it.
- Make sure to be generous, and be creative. The referral plan should be easy to remember and stand out in their minds or they won't remember to refer you.
- Most importantly, you want your offer to have a reward for BOTH the referrer and the person being referred.
Think about it like this. If your car breaks down for the first time, are you more likely to visit a new mechanic that you’ve never been to, or a mechanic that a trusted friend has recommended?
Companies like Sprint use referral programs and offer $20 credits to customers who refer another customer to them. And a $10 service credit to anyone referred that way, who actually becomes a customer. All the statistics and the latest studies that have come out show clearly that companies who accurately target referral programs will return more on their marketing investment then their competitors.
Feel free to shoot us an email and ask our advice on your Referral Program, we'd love to help!
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