Explore why gift rewards are essential to your referral strategy and learn best practices to implement them effectively with these actionable tips.
Corporate gifting dates back centuries. During the Renaissance period, gifts were seen as a token of appreciation and a means to maintain a good relationship. The same applies to today's competitive market, where it’s ever so important for builders to find new ways to stand out and drive client engagement.
Gift rewards play a crucial role in incentivizing referrals for one reason: reciprocity.
This strategy stayed around because it works. Gift rewards not only incentivize referrals but also enhance brand loyalty. In this blog, we'll explore why gift rewards are important to your referral strategy and best practices.
Sending gifts significantly improves the success of your referral program. The principle of gift-giving comes down to psychology. When someone does something for us, we naturally feel compelled to return the favor.
69% of consumers are more likely to try a brand if it offers rewards, making gift rewards a powerful tool for incentivizing referrals. By offering gift rewards, you not only show appreciation for your client's business but also encourage them to recommend your services to others.
Sending gifts shows that you value your clients' support and are willing to go the extra mile to ensure their satisfaction. It's a small investment that can yield significant returns in terms of client retention and business growth.
When it comes to choosing the right type of gift reward for your clients, it's important to consider what will resonate with them the most. While physical gifts, gift cards to a certain store, and discounts on future purchases are popular options, they may not always be the most impactful. All of them limit what the recipient can spend their money on.
That's why our preferred method of gift rewards is reward cards.
We’re not the only ones, either. 68% of people say they would prefer to receive cash over physical gifts.
Reward cards offer clients the flexibility to spend the reward on whatever they want, whether it's a special treat for themselves or a practical purchase for their new home. This flexibility enhances the perceived value of the reward, which is a better incentive for clients.
Another benefit of reward cards is that with Locorum, they can be custom-branded with your company's logo and branding. This not only adds a personalized touch to the gift but also serves as a subtle reminder of your brand every time the card is used. Locorum offers custom-branded reward cards as part of our platform, making it easy for you to get your brand in front of your customers in a meaningful way.
Our #1 top tip when sending a gift card is to personalize the message along with it. Adding a personal touch will enhance the impact of gift rewards. We’ll go into some specific examples later, but sending a recommendation for what to use the card for or sending it on special occasions is a great way to improve your brand image.
For custom home builders, personalized recommendations for landscaping or local stores can add a special touch to your gift rewards. This shows that you understand your client's unique needs and are dedicated to creating a personalized experience for them.
When deciding when to send gift rewards, consider timing and consistency. Establish a system for sending gift rewards after milestones to reward loyalty. This can help build trust and make sure your brand is consistently in front of them. Here are some of our top recommendations on when to send rewards.
Remember always to mention your referral program in the message when you’re sending a gift!
Pro-tip: Send a reloadable card to continually load with multiple rewards for your clients.
Immediate rewards are key to the success of your referral program. When customers see a reward right away, they’re more likely to continue referring your business. Plus, the home-buying process can be lengthy. So, when a client sends a referral your way, it's important to reward the action, not just the outcome.
Consider sending a simple $25 gift card as a thank-you right away with one of Locorum’s virtual cards. This immediate gratification not only shows appreciation for their effort but also incentivizes them to send more referrals in the future, regardless of whether the initial deal goes through. This approach not only boosts program engagement but also increases the likelihood of generating more referrals over time.
Chances are you’re already sending closing gifts to congratulate clients on their new home and thank them for choosing your services. Consider personalizing each gift with a reward card and a recommendation to your favourite places in their new area. Sending it on moving day, with messaging along the lines of: “Moving day can be stressful, so enjoy this reward for dinner on me. You have to try Pete’s Pizza Parlour for the best pizza in the area!”
If you talked about home improvements, you recommend services or where to go for services or supplies instead. Both are valuable recommendations that buyers can put their rewards towards.
Celebrate your clients' milestones by sending a gift on their home anniversary. In the first year, the 6-month and 1-year mark are great times to send rewards, then annually afterwards. This gesture not only reinforces your relationship but also keeps your brand top in their minds.
Don't forget to send gifts for special occasions such as birthdays and holidays. Schedule these all at once to automate the process. These gestures show that you value your client's business and are committed to building a long-term relationship.
For clients who are relocating, consider sending a card with recommendations for your favourite restaurants or things to do in the area while they’re visiting. This thoughtful gesture can make the search process more enjoyable and memorable. This not only shows your appreciation but also helps new homeowners feel welcomed to their potential new neighborhood.
Engage your clients with contests and VIP programs that offer exclusive rewards. This will not only foster a sense of exclusivity but also encourage ongoing engagement with your brand.
Gift rewards are more than just a token of appreciation; they are a strategic tool that can drive client engagement and loyalty. By incorporating these strategies into your referral program, you can create a memorable and personalized experience for your clients while also boosting your brand reputation and sales opportunities.
Locorum makes sending rewards easy! Schedule your rewards at once with personalized messages to foster loyalty and promote reciprocity.
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