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Referral Program


CUSTOMER:

Self Promotion

OBJECTIVES:

  • Increase the number of new customers
  • Decrease the costs of new customer acquisitions

STRATEGY:

  • Create a tool for the sales people to generate referral prospects
  • Motivate contacts to provide referrals by offering a 2-level incentive:
  • First offer would be a reward for providing referrals
  • Second offer would be a reward if the referrals result in new business

TACTICS:

  • Reward each person that provides up to five referral prospects with a set of noise cancellation headphones.
  • If any of these referral prospects are converted to a sale, reward that same person with an mp3 player that compliments the headphones and completes a set.
  • Capture the information by creating a form to be filled out by the person providing the referrals or the salesperson.
  • Provide each salesperson with a sample of the headphones and mp3 players plus a quantity of full color flyers promoting the offer to be used on sales calls. Put the form on the back for ease of use.

RESULTS:

  • After 8 months (April 2006 - November 2006), 54 individuals have completed a form. That has resulted in a total of 130 new referral prospects. Of these 43 have been converted to new customers resulting in 129 new orders.
  • A total over $266,000 in sales was generated on an investment of $9,500.
 

 


 

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