Is it Really Neccessary? 5 Great tips for a Referral Program

We've all seen them..." Refer a friend get 10% off your next purchase" or " Refer a friend, earn big bucks!" Most companies use some form of referral program. According to Wharton School of Business, of the businesses they surveyed, only 30% had a formalized referral program, even though the companies that had a referral program had an 86% revenue increase over two years. Let me ask you, "what would your business look like with an 86% increase in revenue?"

If you've been on the fence on starting a referral program, now is a great time to jump off and get started. It doesn't have to be huge. While creating your program remember these pointers:

1. It must have value to your current customer. Your current customer may need additional incentive to invite a friend or family member to try your products or services. Whatever you offer, it must have usable, direct, meaningful value.

2. It needs to be relatable. This means if you are a party planner, don't give away pencils.That makes no sense. And your customer won't be able to readily tie it to your business.

3.It doesn't always have to be something free. Get creative, you can give discounts or donations to their favorite charity.

That being said, here are some ideas to get you started:

Give a double discount. "Here's one for you and one for your friend." How exciting is that? Very. Not only are they going to get a prize/reward for sharing, their friend or family member now has even more of an incentive to check out your business.

Put a limit on it. We all know that one person who lives by, "rock it til the wheels fall off!" they will take everything that's discounted, on sale and definitely free until there isn't any more for anyone else. Set a limit beforehand and things won't get out-of-hand.

Send a handwritten thank you note. This may seem a bit extreme, however, if you have clients who consistenly push business your way, a thank you card, perhaps with a larger discount or a gift card is in order. Don't lose your biggest marketer by not saying thank you in a meaningful way.

Well, I'm a long-winded person, but I don't want to take up too much of your time. I enjoy sharing the ideas and tips I've learned over the years. And as always, if and when you need help, I'm here for you. #success