I am trying to put together a referral program this year to increase sales.
I was thinking of offering $25 towards any service when someone they refer has us do a job. I thought this would be a great way to entice them to use me for another service. I was also throwing around the idea of a gift card somewhere instead. I like my $25 towards any service idea. Anyone have any suggestions?
I offer a 10% discount to any clients that refer a friend. I also use gift certificate at charity events. I have only done 1 charity event and got both customers.
The good thing about giving $25 off their next service, as opposed to a gift card, is they are only collecting if they schedule another appointment with you. Go with it and good luck.
I use to do the $25 referral but didn’t always get a great response, however, since changing to the 10% which no expire and they can save and use as many of those as they wish its really helped a lot!
First time post. Gift cards! I happen to work a retail job in the winter, and I get discounted gift cards – 40% off. I offer these to customers when I get a referral that results in a job. I buy them in $20 increments. The customers love them and the store loves them because customers usually average $40 or more on purchases. Even without the discount, gift cards are a good idea. On this same thread, if the homeowner/contact person is a woman, offer more female oriented gift cards such as “Bed Bath & Beyond.” It your contact is a guy, think about a gift card to a video store or sporting goods store…something like that. it works for me, and I don’t have to quibble over the price of the job.
Here is what we do…
We offer our clients a free window cleaning if they refer 3 of their friends. I know, right away people are reading this gasping…“free cleaning”?
Here is the psychology. Our competitors offer free cleaning after 10 referrals, so why do we offer it after only 3? Ten referrals is an unobtainable goal. Therefore, they don’t even try. Three referrals is very obtainable so they are motivated to sell for us. Yet, we have found found that almost all of them only provide us with 2.
We have done 3 free cleanings in the past year, but have been referred to 103 people. Do the math… the average house is $225. We gave away $775 worth of free cleaning yet obtained $23,175 worth of work.
That’s low-cost high return marketing!
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very smart.
I like that.
+1.
One question. Do you have a business card or something to give to referring customers that says referred by Jill smith or something along those lines?
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Great question.
Yes, we always give 5 business cards to our customers, tell them to write their name on the back and give it to their friends.
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We offer a kickback/referral fee based on the price of the referral. It is payable when the the referred invoice is paid,(for the first cleaning only), in the form of either a check, or a discount on a cleaning. It is the customers choice. We offer 10% for residential, and 5% for commercial.
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We have a referral program. You can see it at Window Cleaning in Tulsa, OK
Thats damm smart Bailey I like it.
I started doing this, this year. Last year I had them writing on the cards. This year I made cards with a section for them on the back to write.
Nothing has worked better for me than asking
Most of us are too afraid so we try to be passive
and bribe them. All of my bribes failed and I could
get a referral 30-40% of the time just asking.
Just ask if they know anyone else who needs help
with their dirty windows. Have a little pad and paper
for them to write down numbers.
I am telling you… TRY THIS
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Brett- I like the 3 referrals idea. I think in most cases you would be ahead even w/the free cleaning. Do you have any exeptions, like “free cleaning up to a certain $ amt”? Do you think that would be tacky to throw in there? Bruce- I also like the gift card idea for another business. Ive done gift certs from a restaurant I barter with. Good idea especially if the gc is from one of your others accts.
I like that idea a lot. I may do that with my next set of biz cards. Just wondering- Do you find that the current customer gives the card back more or do they pass it along and you get a call from the potential customer?
Ill have to let you know if you remind me. I had those cards made this year and have not cleaned enough res work to pass them out. The 40% is for a 4 customer referral. So I will be giving them 5 cards this year. If the customer fills out the card on the spot or passes it on I really dont care as long as they have their info on it when I get it.
I’m waiting for the ones who just pass them out and dont fill in anything. Then I got to hunt down the client. That’s going to be fun.
I second this notion. Simply asking for a referral is a very simple and effective manner for getting one. Not that I feel incentive referral programs are ineffective, they can work well, but coupling a referral program with a process that has you asking every client, either on site upon completion of the job, or via customer follow up, will net you a significant number of referrals without ANY discounting or freebies.
Couple a process where you ask EVERY customer for a referral with an incentive based program to provide multiple referrals, like Bailey, and you are poised for a dramatic increase in sales without much effort or dollars in terms of marketing. Ask for a referral from a happy customer, while they are looking at that quality job you just completed for them, and you will be surprised with the results.
Good Luck!
That is a great point. I plan on asking every customer for a referral, even if I only get 1 that turns into a sale, I have doubled my client base in only one year!
The problem I see, especially where I live, with a referral “program” is trying to explain what they get in return for their referrals. By asking a happy client for referrals you could send them a thank you card and a gift card if it turns into a sale or if you are moved to do so.
