Most business owners know that referrals can help boost business, but how do you go about getting referrals and who are the best referrers? Some clients are natural referrers because they're outgoing and like to be helpful. Others are more reserved.
Some people are motivated by the incentive you give for a referral. Incentives, however, have to be worth enough to take advantage of them. Most people won't go out of their way to save $2 on a $200 product. But they might, for a $50 savings. Make sure what you're offering is worth making the effort.
Specific dollar amounts are better than percentages. A coupon for even 40% off is often viewed as a "sale" price which could be gotten during the normal course of business anyway, rather than as a specific reward for a referral.
And give the referrer choices. Offering a $100 Gift Certificate for the referrers choice of your products i's better than offering $100 off their next purchase.
Make your offer match the value of the new client. Giving away a free haircut for bringing in a new client makes sense since the value of the new client over time will be worth much more than the price of a single haircut.
Bottom line ... be generous with your incentives, don't make referrers jump through hoops in order to get their rewards, be thankful and give praise to those who give you referrals, and be especially kind to those folks who refer you again and again.
If you're having a hard time coming up with ideas for your referral program, give the creative team at Imagination Technology a call.
