Referral programs are a very good way gain recognition for your brand and increase your sales conversion rates. A referral program works in the following manner – you reward the people who send you new business. This, in turn, will encourage them to send you more customers. It is as straightforward as that. How are these programs successful? In a few words…
Humans, by nature, love to get rewarded. If there is an incentive, it motivates them to act more quickly. When your clients get rewarded for sending new business to you, they feel appreciated and happy. Your response rate will increase tremendously.
The advantages of a customer referral program include:
1.The cost is minimal. Your friends and clients bring you new business – all you need to do is reward them by giving service credits or a gift certificate.
2.It will attract valuable customers. The customers who are referred by your existing clients are more likely to do a lot of business with you, as they already know that you are trustworthy.
3.This will greatly build brand awareness. If people talk very highly about your business, it has a very positive effect and your brand’s popularity explodes.
4.It creates a platform to launch your new products and services. This is most likely the biggest advantage of a referral program.
5.It creates a foundation to maintain the wonderful relationship you have with your existing clients and to build a base with new clients.
To be successful, you should let all your existing clients know about your new referral programs. You can do this by sending a quick text message or by sending an email to all your clients. You should gradually build a mailing list and send a reminder to your inactive clients once in a while. This allows you to keep reminding them that you appreciate them and would love to reward them for their referrals.
As a smart business owner, you should understand an important thing about a good customer referral program. The incentive you give need not be extravagant. In most cases, service credits would be fine. In fact, in some cases, a donation to a local charity in your customers’ name or even a box of chocolates will show your appreciation for your customers.
Most people understand, what matters most is your intention. So, try not to worry about spending a lot of money on your incentive program. Set up a referral marketing program today and get the results you want.