One of the biggest sources of incoming leads for some of our real estate agents, private practice physicians, and personal injury lawyers is referrals from their past clients. While these referrals may happen organically over time they will be inconsistent at best. If you really want to have a consistent flow of new business you need to be intentional about creating a referral program.
Every great referral program addresses these two things.
Incentivizing the Referrer
First there needs to be an incentive for the person that’s giving the referral. The person that takes the initiative to recommend you to someone they know is a huge act of loyalty to today’s consumer and you don’t want that to go unnoticed. They are taking action to help you get more business and should be treated like a VIP for their efforts. I’d go ahead and offer them a free future service or offer something like a nice sized gift card to Amazon. Showing them that you appreciate them referring you to other people goes a really long way and it’s not as much about the value of what you give but more about the gesture.
Incentivize the Referral
You’ll also want to give some incentive to the person that’s being referred to you. You really want this to be the extra push that gets the person being referred to take action. The combination of a recommendation from a trusted source and a discount or promotion is a powerful motivator to get that referral to convert.