There is a good chance that you have already participated in a customer referral program, whether you referred a friend to a product/service or you took a friend’s recommendation. Many businesses claim that a customer referral program is an integral part to their success. Whether your business gains one lead or thousands of leads, instituting a customer referral program can help boost sales and improve your overall business.
The referral program should be clearly communicated to all customers. There should be a dedicated webpage that lays out the rules and conditions of the program. It is always great to have your customer support team and sales team reminding customers and prospects of the program, so it is a good idea to provide marketing collateral for your customer-facing employees. Lastly, never stop reminding your customers about the referral program! Have an email program set up so that you can continue to remind current customers and let new customers know about referrals.
Here are a few reasons why a business should have a customer referral program:
- It is the original form of social marketing, also known as word of mouth marketing. When a customer has a good experience, they relay that experience to their friends and peers. In comparison to social media and online forums, this is far more personal than posting a public review for all to read. There is a certain amount of trust involved when a person refers a product or service to a friend.
- It improves and encourages communication between you and your customers. In order to get direct customer referrals, you have to maintain a friendly and open relationship with customers. Encourage company representatives to keep the line of communication open after the sale and implementation processes.
- It can grow your business at a very low cost. Your best customers will refer others even if there is no reward. However, some people want recognition for their recommendation and there is nothing wrong with that. Your customer’s opinion is very important and for a small price it can be just the thing your company needs in order to grow.
Here are a few ways that you can thank customers for referrals:
- Offer a gift card as a thank you. Fleetmatics customers who refer new customers are eligible to receive a Visa gift card. If you are a Fleetmatics customer and want to refer us to a friend, check out our customer referral program.
- Credit a dollar amount to the customer’s account. Many online retailers offer a refer-a-friend credit to account when a friend purchases or signs up for a service. This can encourage customers to continue to shop, as they may feel obligated to use the free credit.
- Offer add-on services at a discount or for free. This is a great way to reward loyal customers and to also get them to try your additional features.
Do you have any customer referral program tips? Share them with us in the comments.
