Who do you know? Bribing customers and their friends

5 Minute Workshop

We all know its easier to sell to existing customers. The next best thing is a “warm contact” – an introduction to someone new, from someone you know. There's no shame in asking your customers who else they know. In fact, it's a shame if you don't. Every time you meet them, ask the question “who else do you know who would benefit from our services?” You'd be surprised how many people will be happy to recommend a friend.

It's easy to design a “recommend a friend” scheme. Firstly, how much is a new customer worth to you? Add up the total amount you invested in marketing last year – include everything you spent on attracting new business like stationary, Yellow Pages adverts, website design and so on. Now divide that by the new customers you won. That's your “Cost of Attraction” – I bet you're surprised at how high the figure is. OK, so if you can get existing customers to refer their friends and reward them with something less than your “Cost of Attraction”, you'll be in the money. See “Make ‘em do it!” for reward ideas.

Once you've decided on what you're prepared to pay to get a new customer, you need to let people know. See below for the tools you should be using to spread the message...

The power tools of referral

Refer a Friend Card

Put a little care in each bag, box or invoice. Ask them to send it back freepost.

Website Form

Create an online form and send them a link with their invoice or order confirmation.

In Person

Ask them who they know – especially if you're providing a service.

You've launched your scheme. You've got some names. What now? Use them! Reach out to your new contacts with a letter and a brochure, followed up with a telephone call. When you send a letter, be sure to mention who referred them. Say something like “your colleague Kate Murray wanted you to see what you could save...” It's important they know this isn't a cold contact, but a recommendation from a friend. When you're calling, get past the gatekeeper or break the ice by saying “Mark Jones has asked me to call”. Your local printing.com team can help create a scheme that works for you. Good luck!

Make ‘em do it!

There are lots of different tools you can use to motivate people to refer their friends...

Cash

Cold. Hard. Cash. Send them a cheque. Credit their account. Give them a crisp bank note.

Money off

20% off their next purchase. £10 off anything. £20 off a certain product. Half price service.

Free Stuff

A complimentary lesson. An extra night free. A box of chocolates. Something for nothing.