referral programs

[joe]

I am planning on starting a referral plan to get new business. Does anyone already have such an plan? What is the reward structure? How do you keep track of rewards?

Thanks

 

[PaulSF]

Ken Baur wrote an article a while back in either PFM or Decor. I tried my version of what he was doing, for a while. I printed up some certificates that I handed out each time a customer picked up an order. They could write their name on the certificate and give the certificate to a potential new customer. The new customer would get $25 off on his or her first order, and I would send a gift certificate to the referring customer, good for $25 off on his next order.

I stopped doing it after a while, because the only time someone ever did it, it was a wife referring her husband.

 

[Bill C]

Same here. I did it for a while, and only got two responses. One was for the daughter and the other was for a brother.

 

[framerbob]

every time a first time customer places an order I ask how they found out about us, ie: internet, phonebook, walkin ect. so I can track my different advertising campaigns.

If they say "Pam Johnson told me about you" I send Pam a $50 gift certificate with a quick note thanking her for trusting us enough to refer her friends.

Some time ago I send out a postcard to all my clients letting them know about the beginning of this new referal program, I doubt that any of them even read it, but once they send someone in and I send them the $50 certificate they catch on real quick. So far it has not been a huge success, but I do have a few customers are doing a great job telling their friends about me and getting $50 each time.

The only restrictions: the new customer must place a custom framing order that includes the purchase of a custom frame. and I dont count the spouse of an existing cutomer as a new customer (or anyone living in the same household) but other than that its fair game.