Referrals are a powerful tool for growing your business, but are you making the most out of your program? It’s not a set-it-and-forget-it tool, it’s something that takes a bit of time and dedication to get right.
Getting the most out of your referrals requires a strategic approach that many businesses often overlook.
That’s why we’re here to help. We'll explore the key strategies you can use to boost referrals and turn satisfied clients into brand evangelists.
There are many things you can do to improve engagement, and it can get overwhelming. We like to keep it simple, so follow our top three ways to improve referral program engagement to drive business growth.
The people already referring to you are most likely to become brand evangelists (those who love your brand and will continue promoting you). While it may seem counterintuitive to reward people who take action organically, research shows that people are 65% more likely to refer when incentivized. A simple thank-you and a promise of a reward, when the deal closes, will incentivize them to keep referring to you.
Reward the action, not just the outcome.
This doesn't need to be a large amount. It could be $10 or $20, think:
"I'd like to buy you coffee to say thanks for the introduction to [friends name]. I've sent over a gift card via Locorum as a genuine thanks from us. Introductions like this are the lifeblood of small businesses, and I want to express my gratitude. If the deal closes, you'll be eligible for $[amount] through the same Locorum referral program. Any other introductions are greatly appreciated. If it's more convenient you can use this link to refer."
Small gestures, like a reward card to go towards coffee or lunch, show appreciation. Expressing gratitude and showing you care goes a long way. If the deal closes, they'll be eligible for a larger reward through your referral program.
Finally, let the person who was referred know about your referral program and the reward they'll receive if they move forward. 79% of consumers are more likely to close if there's a reward involved. This not only incentivizes them to close the deal but also improves conversion rates.
Of course you need to set all these reward amounts at a level that makes sense for you. Maybe this means reducing the closed deal reward to make room for these. Do what’s right for your business. This is a good way to build client loyalty and gain more referring customers.
Timing is crucial when asking for referrals. While 83% of consumers are willing to refer after a positive experience, only 29% actually do. Introduce your referral program and directly request referrals into your post-sales flow (here are some perfect times to incorporate it).
One way to do this is to include it as part of your closing gift to make a direct ask. Ride the high of a successful deal, introduce the program and then make a direct ask. To introduce the program, create a postcard with a QR code that comes with their closing gift. This postcard thanks them for their business and introduces your referral program, encouraging them to refer others.
Additionally, consider including a QR code that leads to a form where they can leave a testimonial, further engaging them with your brand.
After introducing your referral program, keep it top of mind with clients. Just like with any marketing effort, there's an "effective frequency" for people to remember something. While the frequency might not be as intense as digital ads (2x a week for 10 weeks), it's important to consistently remind clients about your referral program. The “rule of seven” indicates that something needs to be seen seven times before someone remembers it in any detail or takes action.
A way to keep mentioning it without being pushy is by adding a standard and reusable banner or block to your monthly or bi-weekly email campaigns. Place this banner above the footer to ensure it catches the reader's attention. Additionally, consider segmenting your audience and sending dedicated campaigns to past clients to introduce them to your referral program. Then, include it in all your sales teams' email signatures as well.
By implementing these strategies, you can effectively leverage referrals to grow your business and cultivate strong client relationships.
Looking to boost your referral program? Get in touch with our team today!