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Don’t Have a Customer Referral Program? Here’s How to Launch One Today!
By admin | May 3, 2009
Referral programs are a very good way to popularize your brand and increase your sales. A referral program works in the following manner – you reward your customers who send you new business. This, in turn, will encourage them to send you more customers. It is as uncomplicated as that. Why are these programs so successful? Let me explain.
Humans, by nature, enjoy being rewarded for their actions. If there is an incentive, it motivates people to take immediate action. So, if effect, when clients get rewarded for sending new business to you, they feel appreciated. This increases your response rate exponentially.
The advantages of a customer referral program include:
1.It costs virtually nothing. Your friends and clients bring you new business – all you need to do is reward them with an incentive to do it again.
2.It will attract high value customers. Customers who are referrals from existing clients are highly likely to do business with you, as they already know that you are dependable and trustworthy.
3.This will build brand awareness. If people talk very highly about your business, it has a very positive effect and your brand’s popularity explodes.
4.This creates a great platform to launch any new products or services you may offer. This is without a doubt the largest advantage of a referral program.
5.It builds a stage to maintain the existing relationship you have with your clients and to build rapport with new cusomters.
To get the best results, you should let all your existing clients know about your 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.
When you are a business owner, your should understand an important thing about a good customer referral program. The incentive you give need not be pricey. Mostly, service credits would be sufficient. 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.
The one thing that matters is your intention. Don’t worry about spending a lot of money on your new incentive program. Set up a referral marketing program today and get the results you want.
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