Reduced sales and marketing budgets, increased revenue, optimised sales cycle and increased lifetime customer value – the benefits of a well-executed referral program are infinite! And here’s another secret; customers acquired through referral programs cost less and have a greater potential for loyalty and retention than the average, cold lead.
The benefits of referral programs have been the focus of many studies over the years. The verdict? Referral leads are warmer, cheaper and have a far higher conversion rate. In fact, a study completed by the Wharton School of Business found that referred customers are 18 percent more likely to stay with your company over time and even bring a life-time value that is 16 percent higher than customers acquired through other sources.
So, how can you create a winning referral program? Simple. Build your business a steady referral network in these four simple steps that will enrich your customer relationships, minimise your hard marketing costs and save you time in the process.
Step 1 – Identify the “inner circle” of sources for your referral program
A potential referral source can be anybody your business has made contact with – current/past customers, vendors or industry insiders/leaders. The idea is to target the referral program towards your happiest customers and contacts that know the value of your business. These people form the inner circle and would be happy to refer you without any incentive.
Step 2 – Define the process for your referral program
Define and document goals, processes, best practices and any other elements required for the referral process. Once the process is defined, make the information readily available to all employees who speak with customers, so that everyone can communicate the basics of the referral program and how it works. This will also ensure that your referral program is being actively promoted at each step of your service model, including sales, marketing and follow-up services.
Step 3 – Prepare resources for your referral program
Some resources that you’ll need to carry out a successful referral program include scheduled emails to promote your referral program to new clients, telephone/voicemail scripts for your sales team, content to explain the referral program and a referrals “kit” for your sources to share with their friends. The referrals “kit” could include case studies, eBooks, customer testimonials and your best offers. Another great tactic to consider is developing a web page where existing customers can provide contact information of friends who may be interested in your product or service.
Step 4 – Reward your referral sources
Only serious value will keep your referral sources actively engaged and help you build a steady referral network. Express gratitude every time a referral is successfully created. Prioritise their needs and meet their expectations before other groups.
Use cash-backs, discount offers and gift cards to show how much you appreciate their referrals and encourage them to refer again. Eftpos gift cards are a quick, easy and effective way to achieve this. The cards can be used anywhere eftpos is accepted making them very versatile and valuable no matter who your target market is.
The monetary value of your eftpos gift cards can be tailored to your budget and, with no volume limits, Rewards Come True promises a simple and painless ordering process. Whether you want to reward a few special clients or thousands of customers, we can provide everything you need to develop a successful referral program.
For more information about how to use eftpos gift cards to develop a successful referral program for your business, please send us an enquiry or call us at 1 800 446 347.