I was fortunate enough to purchase a new car this year and as so many other consumers have experienced, my insurance company and car salesman offered me incentives for referring a friend. Employee and customer referral incentives can be a powerful medium for attracting new employees/ customers and retaining current employees/ customers. Rewarding customers and employees for referring friends and family can be most successful when the following guidelines are put in place.
As many people in human resources, sales, insurance, healthcare, retail and childcare (to name a few) have found, finding the right type of award is one secret to increasing employee and customer referrals. Allowing the person to select from a range of gifts designed to appeal to a spectrum of interests and demographics is a sure way to provide a desirable award for each recipient.
In addition to providing attractive awards, I advise clients with referral incentive programs mention the opportunity at the end of orientation for employees or a consultation/purchase for customers. By making the employee aware of the referral incentive program and enticing them by handing out gift booklets and business cards to take home, you can increase the chance that an employee or customer will refer others.
The two tips above are both great ways to help the referral program succeed but if you do not follow up after receiving a valid referral or make the ordering process difficult, this can hinder the program’s success and lower the probability that an employee or customer will refer your company again.
Employee and customer referrals should always offer multiple methods for redeeming an award or awards. Redemption by mail, online, fax, phone or email may be used depending on what is most desirable. I encourage a phone-call or an email to follow up with the person as soon as possible that includes a thank you note and instructions for ordering.
Wendy Maynard, author of an article featured on EzineArticles.com, advises “Be sure to let your contact know when a referral he or she has made comes through. You'll be amazed at how the action of showing appreciation can generate good will and additional referrals…Once a person gives a referral, they become much more likely to continue to refer people your way.”
If you plan your referral programs carefully and follow through with the people who refer others, not only will your business grow but as Ivan Misner in his article featured on BeneathTheCover.com reports, “Referral clients are easier to close, have fewer complaints, are more loyal, remain clients longer and are more trusting.”
As a result of my enthusiasm surrounding my recent purchase and a chance at receiving excellent rewards for referring others, I have referred three people to the car dealership, two of whom subsequently bought from the same salesman. I also referred a friend to the insurance broker. I have to agree with Joanna L. Krotz in her article on Microsoft Small Business Center when she asserts, “The most effective sales team you'll ever find is enthusiastic customers.”
Leave a Comment