The Dos and Don’ts of Customer Referral Programs

Word of mouth is a fantastic way to bring in new business. The new customers who are referred by your current customers tend to be more loyal to you from the start because their friend has already vouched for you. Sometimes, though, that word of mouth needs a helping hand. That is where customer referral programs come in.

As effective as referral programs might be, the way you organize and implement your program will make all the difference. Our team at McCauley Marketing Services has specialized knowledge and first-hand insight into how to make these programs work. To make the most out of your own referral program, check out these dos and don’ts.

Do Have a Tracking System in Place

For your referral system to work, you need to follow through and actually reward your referring customers (we’ll call them advocates). You can’t do that if you lose track of how many customers each advocate is bringing in. Before you launch your referral program, have a clear and reliable system in place to track all the referrals.

Don’t Forget to Reward the New Customer

The concept of a referral program is to reward your advocates for referring new customers. For that to happen, though, the new customer needs to remember to tell you that the advocate referred them. You can make sure that happens by giving the new customer an incentive too.

For example, perhaps when an advocate refers a new customer, both the customer and the advocate get $20 off their next visit. This allows you to make sure your advocates get rewarded while also giving you more data about how your new customers learn about you.

Do Make Sharing Easy

There is an age-old principle in marketing that still holds true: if you want someone to do something, make it as easy as possible. This applies to your referral program as well. Make it as easy and convenient as possible for advocates to spread the word by setting up simple processes they can use.

For example, say your medical spa has a special sale coming up. When you send out a marketing e-blast about it, include a call-to-action at the bottom encouraging readers to forward the email to their friends to take advantage of your referral program. Be careful to explain, though, that they get rewards for customers who come in, not for forwarding the email alone.

Don’t Forget to Market the Program

This sounds like a simple step, but too many businesses do not make it a priority. If customers don’t know about your referral program, they will not be making referrals. After you design and launch your referral program, you need to continuously market it to your customers.

You can advertise it within your facility and by telling new customers about it after their first visit. You should also promote the program every so often on social media and through email marketing. You can even identify the customers who are especially social or those who seem to have the best view of your business and reach out to them directly, encouraging them to take advantage of the program.

As much as you already value every customer, you will value them even more if you see how much potential they hold. A referral program, if done the right way, will put that customer’s potential to use in a way that benefits everyone. For help setting up your own referral program or using other business-building strategies, call McCauley Marketing Services today. Follow us on Facebook and Twitter for additional marketing tips.