In an age where “participation trophies” are commonplace, it is more attractive than ever that your customers have a referral rewards program to thank them for their loyalty and embed the seeds for loyalty retention for newly referred customers, clients and patients.
Safe bet is all your clients want new business, even if they are bursting at the seams with success. They have that immediate pool of potential new business with satisfied customers who will spread the good word. A compelling verbal presentation is found on Inspired Results’ website: “The most incredible source of new business is actually right in front of you. Behold, your referral network. For may small- and medium-sized businesses, it’s an opportunity goldmine. It’s also the perfect chance to show gratitude with branded merchandise.”
Further, Nielsen data showed that of all the avenues of awareness generation, respondents across all generations from teens to those 65 and older ranked personal recommendations as the most trusted source.
Here’s an example of a missed opportunity. A local air conditioning/heating company in New Jersey sent out a nice stuffed business-sized envelope with “Magnet Inside!” emblazoned near the addressee. The heft and the magnet were attractive to recipients and most of them were opened.
Within the envelope were a double-sided printed card stock with the magnet attached inside a six-panel tri-folded full-color brochure about the company’s Referral and Reward Program. Nice, huh? Definitely attention getting.
Until you read that the three-tiered referral program gifts the referring customer with three options of … Visa gift cards.
So – perhaps several people will successfully refer a customer to this HVAC business, claim their Visa gift cards, buy a meal or an item with someone else’s logo. The rewards were as follows:
- $25 for service and maintenance referral
- $50 for water heater installation referral
- $100 for heating/air conditioning referral
Now: how about any branded merchandise that would cost $25, $50 and $100 wholesale each? With so much to choose from in the promotional universe, perhaps this company could have offered three choices for each tier of referral, expanding potential customer referrals.
Inspired Results suggests basics (eg, high-end pens, notepads), apparel (caps, sweatshirts, jackets), and specialty (wine sweaters). For the highest-end, think of a 10-piece barbeque set, a personal espresso set, high-end golf accessories, full picnic basket, etc.
When helping customers create a referral-rewards program, remind them simply that once the Visa card is gone – so is the memory of the company that rewarded the referral.