Last week, I covered tip #2 of setting up a successful process to set your referral program on fire. Now that you've got a process implemented, (you do have a process implemented, right?) let's move on to #3 in the series.
Many people will come up with a name or two if you ask them
for friends or acquaintances who might be interested in your services. But promise them a reward of some sort, and they’ll suddenly think of
long-lost aunts and former roommates who are in the market for someone just
like you.
Before you sign away your hard-won profits, though, read
these five tips for creating a great referral rewards program:
- Reward based
on QUALIFIED referrals. What’s worse than having no referrals at all?
Having a notebook full of unqualified leads. One mistake I had made when I first started my referral program: I didn't put any stipulations on gift cards. (The thought hadn't even crossed my mind). That is, until I had a client buy several gift cards for friends, and then expect a free massage for referring those people. (Before the referrals even came in to redeem their gift cards.) While you may be thinking, "hey! you still got paid for those gift cards, so what's the harm?". Well, the whole point of my referral program was to get new clients.
(As we all know, not all gift cards get redeemed!). So while I may have made a quick buck selling those gift cards, that situation didn't accomplish my goal and therefore didn't warrant rewarding the client.
- Reward related
items. Offering a free oil change for anyone who sends five new
clients to your massage therapy business? Umm, no. (This one is probably a no-brainer.) Make the reward fit your
business model for continuity and branding; it’s just one more way to make
your image stronger.
- Reward
quickly. Waiting a few months or even weeks can delay the
action-reward cycle. When people are rewarded quickly, they are more
likely to repeat the behavior so they can get rewarded again.
- Reward
intermittently, too. While it’s important to have a set reward
schedule (for instance, $20 credit for each new client who schedules a session with you), it can be powerful to send “surprise” rewards as well.
Once a quarter or so, send a thank-you email, coupon, or small gift as an
additional thanks. These small surprises solidify your program in your
clients’ minds.
- Reward the referred party as well as the referrer. While it’s great to reward the client who refers new people to you, it’s equally important to reward the new client. Regulars will be much more likely to tell their friends about you if there’s something in it for the referral as well. You can offer $10 off for the new client as well as for the referrer. Then it’s a win-win-win for you, your current and your future clients.
Do you already reward your clients for referrals? What reward has worked well for your business?
Don't forget to check in next Monday for tip #4.
In case you missed the first 2 posts in this series:
How to set your referral program on fire / Part 1
How to set your referral program on fire / Part 2
Cindy Iwlew is co-founder of Bodywork Buddy Massage Software, a complete online management solution for independent massage therapists that includes online scheduling.
Incentive photo: freedigitalphotos.net
Good tips Cindy! Thank you!
ReplyDeleteThanks, Ginger!
DeleteMy referral program is that I send a £5.00 voucher to the client that has referred a new person to me, rather than getting their details and trying to get them to come for a massage etc. I always ask how they find out about me.
ReplyDeleteGreat idea, Paula. Thanks for sharing!
DeleteThe new client gets $10 off their first massage, and the referrer gets an extra 10 minutes on their next massage after the new client comes in! Everyone wins.
ReplyDelete