The Key To Getting New Customers
It's easier than you think.
What’s the best way to get new customers? Online ads? Promotions? Cold-calls? Going door-to-door? None of these options. The most effective way to get new customers is using a referral program for your business.
83% of satisfied customers are willing to become an advocate for your businesS... but only 29% of them are given an opportunity to do so.
Everyone enjoys making useful referrals to their friends and even to strangers. This represents a huge opportunity for your business to get more customers in the door without spending a dollar on ads or promotions. A successful referral program will put your business miles ahead of your competition.
Referral programs pay for themselves!
The average business spends 10% of its sales on marketing activities; like Facebook and Google ads. With these programs you pay upfront, then wait for the results to arrive, if they arrive at all.
The beauty of referral programs is that you only pay AFTER the results have been achieved. When an existing customer refers your business to a new customer, you only reward the person making the referral after the new customer has made a purchase with you. That means referral programs guarantee a return on your investment and pay for themselves.
Don’t know where to start?
A referral program does not have to be complicated. There are two important items that a successful referral program should address:
- Direct referrals that your customers make to friends, family or anyone else
- Online recommendations, ratings and reviews that your customers post
The 3 Keys to Referrals
Follow these and you're all set.
#1 - Reward Everyone
The person making the referral and the person referred should both be rewarded.
- example 1: “Refer a friend and you both get $10 off your next purchase”
- example 2: “Get a free dessert when you share, like or review our business online”
#2 - Promote your program
Train and incentivize your team. The best advocates for your referral program are you and your staff. Make sure everyone knows that the referral program exists and how to explain it to your customers. Reward your staff for signing up customers to your referral program.
Make sure to promote your referral program everywhere you can: on your website, on your social media pages and inside your business.
Rule #3 - Measure and improve
Once you launch your referral program make sure to regularly take note of how well it is doing; how many referrals were made each week and how many new customers came in through the program. Try out new incentives regularly to see what works best.