REFERRAL CARDS WORK!
Any business' best resource is the customer who's already done
business with them. This customer will be the one who provides return
business, and refers new business. How can you insure that you get
those referrals, though? As anyone knows, people will be more
inclined to pass on information about bad experiences than good
experiences. So, you have to give them an incentive.
The best way to do this is to run a REFERRAL CONTEST.
Give each one of your customers a supply of cards they can give out
to their friends. A good idea is to use your business card, and get a
rubber stamp designed to stamp this message on the back:
"Send a friend! You will get a one coupon good for a XX% discount
for each new customer who brings this card in! Good through XX-XX-
XX. Add the new customer's name.
Insert the discount you want to give the person making the referral, and
the expiration date. Two good ideas are to either offer a prize to the
person who sends in the most referrals, or put all the cards that are
brought in into a box and hold a drawing at the end of the promotion,
with both the person making the referral and the new customer getting
a prize.
It's important that you publicize this contest. A contest is no good if
nobody knows about it. So, put a big sign about it in your store. Put
an ad in the free weekly paper in your area and in any freebie
advertiser tabloids. Print up some flyers and put them up in places
where people will see them.
Referral contests work especially well for service businesses, like hair
salons, auto mechanics & body shops, dry cleaners, video stores,
caterers & photographers. Any business that relies on expanding it's
clientele can successfully grow from a referral contest.
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