Most companies report that referrals are their number one source of new business. Surprisingly, many companies do not have a formal referral incentive program. It is imperative that you reward behavior that you want to see continued. If possible you should get customers working for you by implementing a referral incentive plan.

It is important to reward clients with an incentive. Ensure the reward you offer truly is an incentive. To know that, you must know what your clients will value. Gift certificates work well as they do not cost a lot of money to send and are often passed on to friends or family who will become new customers.

An referral incentive program is different from simply thanking your customers after a referral. Promoting a referral incentive program will motivate your clients to seek out referrals for you because your clients will know and value what’s in it for them and will take time and energy to talk about you. To promote your referral program outline it in your newsletter, send an email or letter to your existing clientele and promote it on your website and Facebook.

It is important to promote your program in house as well. Don’t forget to educate your staff; they need to be aware of the program so that they can promote it and explain it to your customers. The program will only work if it is understood and handled properly internally. Your staff must be diligent about asking all new clients how they heard about your company, recording the name of the referral, and sending out the gift & thank you immediately. Not following up on referrals will result in a failed program.

A suggested thank you verse: “Thank you for your recent referral. Your trust is sincerely appreciated!” With the growing popularity of email communication, hand mailing a thank you card signed by your entire team is a personal touch that people will really appreciate. For some companies, a formal referral program is not appropriate; however, sending a thank you card and perhaps a gift certificate for a referral is always good business practice.

Rewarding referrals does not need to be complicated or expensive to be effective, just remember to show your customers you appreciate their support with something they value. Give your customers a personal reason to talk about you. Develop and implement your referral incentive program today!

Written by Lori Colborne, President - LSL Marketing Consultants
Lori Colborne is an international speaker, consultant & author of “Innovative Marketing Made Easy!