“Referrals from satisfied customers are a great way to expand your business. Increase the likelihood of getting good referrals by providing creative and valuable incentives that will make your existing customers want to send new business your way. While the budget for and choice of incentives vary from business to business, the idea behind referral incentives is the same — to show your customers that you value and appreciate their willingness to tell others about the services and products you provide.
Discounts for Future Purchases
Rewarding customers with a coupon to be applied to future purchases is a popular referral incentive. This works well with products and services of all kinds and costs and can take the form of an actual coupon, gift card or email coupon. Businesses that choose this form of referral incentive should make it worthwhile for customers, with a discount substantially larger than your regular sales discounts. Some businesses make these coupons instantly redeemable in the store to prompt the referrer to make a purchase right away. Others offer a discount to both the referrer and the new customer, increasing the incentive for the new customer to visit your store.”
Written by Sarita Harbour, Demand Media
To read the full article, click here.