Use customer referral programs to attract new leads and make more connections
If you provide a service to customers (anywhere from insurance to maintenance services to haircutting services or real estate), you already have people who like your business. Would they be willing to tell other people about you and send you business? Most would, especially if you incentivize them.
That’s what customer referral programs were created for.
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An overview of Customer Referral Programs
There are at least three types of customers referral programs for your business—from simply asking a customer for a referral to offering a special deal to them for their recommendations. Through these strategies, you’ll certainly gain new customers from your existing ones.
- Just ask.
You just closed a successful sales deal with your client, and they are visibly happy with the results. Once everything is all settled, ask them to refer your business to people they think would benefit from your services. It’s very likely that they are like-minded with potential clients who will also require your services at some point. - Provide a link.
Create dynamic trackable links for your clients to pass out to others, stating that they’ll get an exclusive discount on their own services for each one of their referrals. - Provide incentives.
Other than offering service discounts, you can gift your existing customers with a gift card their referrals. For example $50 for one referral, $100 for two, etc. Along with that, you can provide the referred with a small 10 or 15% discount. You can choose however you’d like to reward both parties.
Benefits of Customer Referral Programs
The benefits of using customer referral programs are countless. Obviously, the main goal is a financial gain for your company; however, there are other great rewards you and your business will soon experience.
1. Quality leads
All leads are worthy of your time and service; but there is more of a connection with the ones that were referred to you by your other, loyal customers. In fact, they’re hotter leads because they’re coming to you, not the other way around.
2. Easier onboarding
The leads garnered through customer referral programs will come to you with an already-established level of comfort when they meet you (in person or otherwise). They will have an idea of what to expect, in terms of service and price. You won’t have to drag out the sales pitch as long because someone has already primed them.
3. The power of word of mouth
Word of mouth spreads like wildfire. Once it begins, it is the fastest and most economical marketing tool your business can use. Word of mouth is more powerful than any banner ad you could ever place because it comes from a place of trust. Incentivizing your clients to use it to your benefit is beneficial to everyone.
Final tips of the trade
Try to involve a variety of people. If you have clients that are a part of a nonprofit, religious organization, or extracurricular clubs, have them spread the word about your company and the quality services you provide.
Ask for customer referrals from people who aren’t in any organization, but may be influential in the community. Are there a lot of people that look up to them in your network? Ask them to give you a referral, too.
Use social media as another referral tool. Customer referral programs can stretch into the internet because it is so easy to share posts with others. If you post an upcoming sale on Facebook or Twitter, all they have to do is click the “Share” or “Retweet” button.
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Close more deals with referrals by automating follow-up. Sign up for a FREE 30-day trial of Blitz lead management and sales automation software.
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