How to Build a Fool-Proof System to Reward Referral Growth

Sometimes you get lucky with referrals. If you’re very good at what you do and provide great customer service, chances are you get lucky a lot. But even if this is the case, if you don’t have a specific process to encourage your customers to refer others to you, you’re leaving money on the table. Here are a few ideas to make referrals not just a matter of luck, but the result of a system that works.

Reward referrals consistently. As an insurance agent, you may not get a lot of say in how much your products actually cost—and thus not much leeway in offering discounts. However, you can still reward someone who sends you a paying referral. For instance, offer a gift certificate from a local business or restaurant—maybe one you’ve partnered with—for anyone who refers someone who becomes a paying customer.

Say thank you. Thanking someone for their referral goes a long way toward showing them that you appreciate their efforts. It can be difficult to remember to do this—especially if you’re not the card-sending type—but it can be made easier with programs such as SendOutCards, which makes the process close to automatic.

Cross-promote. You can make your program even more systematic—and easier on your wallet—by getting other local businesses in on the deal. Approach other local businesses that serve the same demographic you do, and get them to offer a discount or gift certificate to your customers if they purchase from you. For instance, a discount certificate for the sign-up costs at a local gym would be a great incentive for people buying health insurance. This is a win-win—it brings in more customers for your partner, and it reduces the cost of the referral program for you.

Publicize your program. It will be difficult to get customers to take advantage of your referral program if they don’t know about it. Be sure it’s publicized—on your website, your social media, your email, and other places where you keep in touch with customers. Remind them of it periodically and print it in your literature. Build a way to inform them about your referral program into your customer on-boarding process. That way it will get customers thinking about how they can take advantage of it from day one.

Referrals shouldn’t be a matter of luck. You can build an easily-repeatable system to reward referrals. Reward consistently and publicize the program, and you’ll most likely see good results.

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