Friday, March 21, 2008

Building an Effective Referral Program (Linkedin ?)

Another linkedin question
Question:

I am looking to build upon my company´s referral program I work with a Marketing company with ties in the Cancun Travel, and Tourism industry. I am apart of their newly formed referral program, and was recently brought in due to my previous success in the sales department. They already had the following in place: Referral Program Promotional Post Cards (4 per Owner meant to be given to friends) Special Promotional Prices to recipients of Referral Program Specifically targeted Email & Direct Mail Campaigns Establishment of a Refer a friend discount (click here for the entire question and all answers)
My answer:

The first thing I would recommend is researching why(why not) an Owner
recommends his/her friends. Often, the reason someone won't do something is a
lack of understanding.

  • Do they understand exactly what they are supposed to do?
  • More importantly, do they understand what's in it for them?
  • Do they understand what's in it for their family and friends?
  • Do they know how you will follow-up with their family and friends? (I.E. are you going to pester them? High pressure sales?)

Secondly, I agree with the importance of follow-up, and as David mentioned, actually asking for referrals rather than relying on passive methods only. In my experience, the best way to increase referrals is to create a culture where giving referrals is exciting and completely normal. One way to do this is through the promotion of third party stories. Find some case studies of Owners who referred their friends and then went on vacations together and had a blast. (Don't forget to talk about all of the discounts, incentives etc. that both parties enjoyed as a result of the referral program

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