A referral program in a program where a company offers its customers benefits such as discounts, free products or gifts, in exchange for the recommended and help you get other clients.
Creating a referral program is an effective way to get customers , as consumers tend to consider more recommendations they receive from other consumers (especially if it comes from people who know and trust) that you can say a company about its products or services.
Also, despite a profit involved, these programs are usually less expensive than other methods for clients such as advertising, as they are customers of the company and not it, those who get new customers.
Referral programs can range from complex programs on the Internet that lets you know the origin of a person visiting a website and buy a product, and thus know the person referred to simple programs where a discount is offered to a customer if at the time of purchase brings a friend.
Let’s look at some examples of simple referral programs that can take as a reference to create our own:
- one where they offer our customers a 10% discount on any of our products or services, each client we come to refer (to identify the customer who recommended the referred customer must indicate his name or code when to visit).
- one where they deliver to our customers coupons per certain amount of consumption they make, so they give them away to acquaintances, and where they offer a free product or gift each time they are used three of their coupons ( to identify the customer who gave the coupons we could write your name on the back when they deliver them).
- one where they offer our customers a 50% discount on our services, if at the time of purchase bring a relative or friend.
- one where they deliver to our customers an invitation card that will give the right to prove who owns one month our services for free, for it to be given away, a family member or friend, and where they also offer free month of our services if the client referred, after using the card decides to stay.
As we see, creating a referral program is a simple task that can signification a good flow of customers without a great effort and a great investment; It’s just a matter of making sure that the benefits offered are compensated by the results, and that the referral program (including its operation and its conditions) is the knowledge of our customers.
Other ways to get referrals
When you are speaking of reference referred to referral programs where there is a benefit of using the normal manner; however, it is also possible to obtain referrals from our customers without offering a benefit in return, either by asking if they know people interested in our products or services, or simply asking them to recommend us to other consumers.
Examples of how to get referrals from our customers without the need to offer a benefit in return:
- ask them if they know someone who might also benefit from our product, and if an affirmative answer ask if they could provide us with your contact information so we can communicate with it.
- after you have given them your product or service, and verifying their satisfaction, they do recoder the main benefits of our product or service, or what differentiates us from the competition, and ask them to recommend us to other consumers.
It is also possible to get referrals from other companies or businesses that are not competition but have our same type of target audience, to make alliances or agreements with them.
Examples of alliances or partnerships with other companies or businesses that allow us to get referrals:
- one where you let discount cards have them delivered to their customers, and where they offer consumer vouchers or discounts for their workers, for every customer who comes to our business and make use of the cards.
- one where they offer a sales commission each time one of its employees bring us a customer, or register directly on our business.
- one where we offer them leave on their customer service desks or tables of their waiting rooms, our brochures or cards, in exchange for which we also do the same with theirs.
Finally, it notes that whatever the method we use, are unlikely to obtain referrals from our customers or other businesses if they are not satisfied with our product or do not consider it advisable, even if they offer some kind of benefit.
So the main requirement for referrals is to offer a high quality product that is accompanied by a first-rate customer service, our customers do not only get referrals because they offer us something in return or we ask, but also by choice.