Tell Your Friends: Why Building a Referral Program Might Be the Smartest Move You Make

Jun 20

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6/20/2014  RssIcon

When it comes to retail, one of the biggest challenges a store owner or manager faces is bringing in business on a consistent basis. You want your regulars to stay loyal, coming back for more again and again. You also want your customer base to expand to introduce new business, and one of the best ways to do this is via the power of referrals.

When satisfied customers spread the word about their positive experience with a particular business, they tend to draw more people in the doors, whether close friends or just those who read a Tweet or Facebook post. Target the power of word of mouth and recommendations through a referral program and you'll really see a difference. More business will be coming to you and your profits will be moving in the upward direction. Let's take a look at referral programs and why they are seen as an investment in your business that will provide excellent returns.

Why Leave It to Chance? Use a Program That Works

One of the best ways to build your customer base is by offering them a rewards program. You'll find that there are a variety of products on the market, such as those offered by us here at Retail Hero, that offer rewards to encourage loyalty. Whether customers earn points or checks, they will see that they are getting something in return each time they shop at a particular business. You can tap into the power of rewards by making an additional incentive: offer customers a reward every time they refer a friend to your business. Each time a referral walks into your store, they can receive a reward as well. In turn, they are more likely to tell their friends and become regular shoppers.

Tapping into Social Networking is Key

In building a referral program, you'll want to leverage every resource at your disposal. Besides offering incentives that are a part of your rewards program, you should also tap into social networks such as Facebook and Twitter. Reaching out to your customers in this way ensures that they are constantly receiving your branded message in places that they check frequently. They'll also be able to share your promotions with friends and family, tapping into the referral effect. Always encourage your customers to spread the word about your business.

Hold Customer Appreciation Days

Give something back to your customers with appreciation days. Offer refreshments, door prizes, and other giveaways, or roll out special promotions and exclusive sales on that day. Ask your customers to invite a friend to your appreciation day to enjoy an unforgettable experience. You will find that your customer loyalty becomes stronger every time you reach out and try to give your patrons the feeling that they are welcome guests. Go above and beyond to treat your customers like royalty. They'll be sure to share every positive moment with their friends, helping you to create valued new customers in the process.

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