When consumers are looking to make a purchase, where do they turn for help making their decision? Some head to the internet, but a huge amount look to their family and friends for information about a business or product. In fact, 9 out of 10 customers trust a recommendation that they receive from someone they know. This is something that you should be taking advantage of! And you can do so by creating a referral rewards program for your current customers, so you can pull in more leads for your agency. If you aren’t sure how to get started on building the right referral rewards program for your business, have no fear! With a little work, and using the following tips, you will have a successful referral rewards program in no time.
What Is A Referral Program?
A referral program is a growth marketing tactic that encourages existing customers to recommend your services and business to their friends, family, and colleagues. Otherwise known as word-of-mouth marketing, the purpose of these referral programs is to attract new leads who will be a good match for your business. Referral programs are a great way to get qualified leads who are a good match for your agency because these leads will be familiar with your business and its reputation through someone that they know and trust personally. These programs tend to be worth the work you put into them: according to Nielsen, people are 4 times more likely to buy when referred by a friend.
Creating a Successful Referral Rewards Program
1. Make It Fun
The first step to creating a referral rewards program is to brainstorm ways to make yours fun and enticing enough that your current customers will want to participate in it. And a great way to get customers interested is to offer a reward to those who participate, so they will be more likely to take the time to engage with the program – and an extra added bonus will be that they’ll feel appreciated! You can offer things like gift cards for a local coffee shop or scratch-off tickets. Think of things that you would like to get, and make it fun!
Don’t limit the rewards to just the customers whose referrals end up buying from you, but you can also consider creating a tiered referral program. For example, the base level can receive a $5 gift card, and the second tier might get a bigger prize like a restaurant gift card, or maybe even a gas card.
2. Know Your Customers & Spread the Word
Who are your most loyal customers? Target the customers with whom you have built a great relationship, and make sure they’re the first you add to your referral program. But don’t stop there: keep on adding customers to the list!
The next thing you will need to do is build a campaign to reach the customers you have chosen so you can spread the word about your referral rewards program. Write an email with a brief description of your fun program and send it out, remembering to check in once they’ve received the info, as well as to stay on top of your program. Make sure you’re giving out rewards earned in a timely fashion! Remember, too, to mention the program to any new customers.
3. Showcase the Winners
Oftentimes customers will not want to participate in a referral program because they think it will be a waste of time, or they won’t actually get anything. You have to show everyone that your program is real and that you’re doing what you’ve promised to do. You can do so by showcasing your winners! Post about your customers and their rewards on your social media accounts and/or website, and share news about your program and those who have benefited from it in a newsletter that you send to current customers and prospects.
Word-of-mouth is one of the best ways you can get new customers and prospects to notice your business and want to work with you. Take the time to plan out your perfect referral rewards program and share the news with your loyal and long-time customers – then get ready for the new business to flow in!
In the meantime, if you are looking for new leads and to grow your business, Benepath can help! We offer exclusive leads who are ready to buy – all you have to do is tell us when you are available to work with them. Benepath will provide you with better tools, more guidance, unsurpassed sales training, and techniques from the most successful agents and trainers in the industry, not to mention the best leads available. To get more information, fill out the form above, or call 866-368-0377.