Have your CUSTOMERS work for YOU!!

[flatfour]

This may sound stupid, But we have had pretty good luck offering REFERRAL BONUSES! For this to work make sure you get a CONTRACT from your customers referral. For 3 contracted referrals I will give them a
$50.00 gift certificate(starbucks coffee is popular) For 5 referral cont. I will send them to dinner, (someplace nice Gift certificate $100.00) for 10 ref. cont. I will send there family (of 4) to Kings Island about $250.00(We are close) For 20 cont. referrals I will send them to Gatlinburg, for the weekend set them up with a cabin in the woods (from a resort USE A GIFT CERTIFICATE That way they are responsible for any damage to the cabin. ) A gift card for feul, and dinner at a local hot spot. This will cost you about $750.00, but with 20 seasonal contracts @ 35-45 dollars each multiplied by 26 weeks.....WHO CARES!!!! So far I havent had to send anyone there, BUT it doesn't keep them from TRYING to get it. Be careful at what point in the season you offer bunuses, You dont want 20 contracts signed in October. Sure you wont loose money.....But we're in it TO MAKE MONEY!!!!

[MASTERMOWER]

Stupid? Nah. Smart? Yeah.

It's a good idear, in fact, a very smart idea. With this sorta referral incentive program, most companies will just hand the client some cash amount, but giving a 'voucher' to a place they'd frequent anyways is many times better.

Anyhow, do you advertise this promotion with your advertising? With flyers or mailings you surely ought to. If a potential client frequents these sorta places anyhow, it's just more modivation to have service through your company.

I dunno about giving them a $750 vacation, but if you have a client which refers you 20 times they are worth keeping (at any cost?).

[flatfour]

We use this on flyers and mailers, sorta like this. HUGE REFERRAL BONUSES!! Bonus rewards include: Starbucks, Your favorite eatery,Kings Island, Trip to Gatlinburg Tenn. (CASH OPTION AVAILABLE.) in LARGE print in an abstract color! The key is to let them know in advance their Referral must sign a contract for the season. If your doing a great job and they are happy, With good incentives, they WILL referre you to family and friends.Hell, They will even follow up on them. All you have to do is BE HONEST! When they meet 3,5,10, or 20 signed referrals, REWARD THEM QUICKLY... IN PERSON!! Throw in a Congrat's card, a Thank you card,Shake their hand, Let them know you appriciate them and dont forget to mail them a Holiday greeting card. Yes this all takes some time and planning but they ARE WRITING YOUR paycheck! You take care of them and they will take care of you!

[Stove]

I love the idea, "CUSTOMER APPRICIATION"

[steve-o]

not trying to be negative here, but i think if you do a good job then the referrals will come anyway and a nice thank you should do. then it is your job to keep on doing good work. i also think offering a bunch of incentives makes you look desperate for work which could work against you.

steve

[flatfour]

No negativity taken, If it does look desperate in their eyes.... They sure didn't mind the free stuff that cost me $900.00 last year. I had a total of 19 NEW customers from this alone. In thae past years,(since 2001) we MAY have gotten 10 GOOD referrals. We have always done good work,But this seems to help out.

[KLC]

I cant afford that kind of incentive this year but I did send out the Christmas cards and followed those a week later with postcards reminding them that referrals do get rewards. I am offering $$$ off their weekly visits for referrals that sign on. Its a start and I dont think anyone else here is offering that.

[MASTERMOWER]

I cant afford that kind of incentive this year.........

In reality, such an incentive offering isn't costing you too much. As he said, the key is having the customer sign a yearly contract, thus eliminating the problem of referred customers lasting a few weeks. Therefore, you're actually making a great deal of money off each referral. He stated he gives a $50 gift certificate for 3 referrals. That's $16.66 for each referral on a $1k+ contract ---- how can you not afford to offer such an incentive? The only problem I forsee is when the client hits 5 referrals, they are awarded with a $100 certificate to a restuarant. That's $50 for the 4th, and 5th referral, thus making each additional referral from the customer more and more costly - BUT, if someone where to refer you 5+ times, aren't they deserving of a great thank you?

Honestly, at times I've spent at least $50 to gain a new client from other means of advertising. This really isn't too bad of an idea.