Tuesday, March 30, 2010

Generate More Customer Referrals

Customer referrals can drive new clients into your chairs. Referred clients are more likely to become loyal customers because they are closely connected to the person that recommended your services -- typically family or friends. This builds trust in your services/products and creates a shared experienced between all parties.

Did you know that promotional products help encourage customers to provide you referrals?

Promotional products are little goodies you give as gifts-with-purchase, thank you gifts, or small tokens to advertise your business. They include your business logo, website or phone number. A study by Baylor University found that customers who receive promotional products (advertising specialties, give-aways) are more willing to provide referral names than customers who don’t received these give-aways.

*Business who gave promotional gifts to customers received 22% more referrals than businesses who did not use promotional products.

*Clients that received a promotional product were 14% more likely to provide a referral than those who did not.

*40% of businesses who used the gifts commented on how well the gifts were received by their customers.

This is some powerful data that you can capitalize on!

Create your own Referral Drive
Step 1. - Offer a free gift to clients who provide you with referral names. Possibly offer various size/value gifts for the number of referrals a client could pass your way. The more referrals -- the bigger the promotional gift.

Step 2. - Increase your chance of booking the appointment with the potential customer by handing out "referred gift cards". These cards can be presented for a free gift or special discount on their first appointment. Your client can personally present this gift card for greater impact.

Step 3. - Have you staff on board talking it up with each client. Make special name tags for the event that reads... Pass me a referral and get a FREE GIFT (for you and your friend)!

Step 4. - Creative excitement about this promotion for 2 weeks. Provide motivational team meetings, hold a staff contest for who can capture the most referrals, add in store signage and tent cards on stylist stations.

Step 5 - Don't forget the important follow up. Make sure you wow those referral clients. This makes your current client shine for their endorsement and turns the referral into a new loyal client!

Don't know what give-away is best for you? Click here to see a variety of promotional products ideas. This is an simple program to easily add to your marketing mix. Ramp up your custom referral programs and increase your sales (and client list) today!

Source: PPAI.org, Baylor University

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