Referral programs require two offers to be successful. The first offer is the reward for the person doing the referring. What is the motivation to invite a friend and spread the news about your business? Receiving great service and being a happy customer is not enough to get traction in motivating referral behavior in today’s world. There has to be a reward associated with seeking out ones friends, neighbors or associates and transmitting trust in doing business with you.
The second offer needs to address the need for an enticement to the new person to try your product or service. This trail offer may be of different value than the first offer given to the person who did the referring. The first offer is usually not valid until the second has been redeemed or purchase has been made.

For example a car dealer may have an official referral program such as: “We will pay you $100 for each customer you refer and buys a new car.” The trail offer for the new customer coming in may be: “Present this coupon and get a full 24 hour test drive”. Once the new customer buys the car the referring customer gets an email telling him to come into the dealership for their $100. This program can be executed as a paper coupon product or as an internet online solution. The online solution has the advantage of providing a registration list of prospective buyers who have yet to come in to redeem their trail offer.

If your company is interested in implementing an official referral program, please call us at Wizz Marketing and investigate the variety of turn-key solutions available. <link to Contact us page>