The top two challenges for many service businesses are:
1.) Acquiring new customers
2.) Retaining existing customers
The right referral program can work to do both. According to Nielson, 84% of consumers trust recommendations from their friends – people trust recommendations from friends 7 times more than traditional advertising. Nothing accelerates a purchase decision faster than word-of-mouth endorsement from a peer who’s only agenda is to help. Not only that, but referral marketing generates customers who have higher lifetime values, are more loyal, and contribute higher margins per year than other customers (AMA).
So how do you get referrals? Step one is to ASK! Have an established referral program and make sure customers aware of it. Whatever you offer as a reward doesn’t have to break the bank. Our dealers offer between $10-100 per referral, depending on what the customer bought. It’s a great coupon in the newsletter, but we recommend also creating referral cards as a leave-behind reminder.
We are here to help you with referral cards and magnets to ensure you business is front of mind when customers have a referral.