Referral Systems

[sunsally]

This from another newsletter I get - this one on Marketing:

Three Tips for Generating Referrals

Daryl T. Logullo says that boosting your referrals is as easy as asking yourself three questions:

Do your existing clients understand the full scope of your services? It's possible you have clients only too happy to give referrals who are aware only of the services they use. The solution is to give your clients a big-picture view of your company.
Do your clients know you want to grow your business? If you think it's tacky to request referrals, Logullo argues the reverse is true. "When you talk referrals, most clients are thrilled that you thought so highly of them that you're sharing your growth plans and requesting their help," he writes. "Try it and you'll be astounded at the reaction." And if you still balk at the thought, Logullo suggests planting a "quiet seed" with a note instead of a conversation.
Do you reward referral-generating behavior? Acknowledge any referral from colleagues with a gift, a free product or an extra resource. "It's an honest appreciation and recognition for those people who have helped you," says Logullo. "They've taken time from their schedules to do you a favor." And make it a habit to reward any referral, even if it turns out to be the worst prospect you've ever seen. People appreciate rewards, and you'll keep getting referrals.
The Po!nt: By devoting a greater share of your marketing resources to the creation of an extensive referral network, you'll see a compounded pay-off year after year.
Source: MarketingProfs. Click to read the full article.

[sunsally]

MANY salon owners say their BEST marketing is "word of mouth".

Do you GO AFTER that word of mouth advertising?

Or just sorta let it drift it's way into your salon as the wind blows?

Are you the salon that is "reaching out" to your customer, letting them know how much you appreciate them, and asking to see them and their friends soon?

Or like the "friend" that writes "RMA" (Remember Me Always) in your yearbook and you never hear from again?



Do you have a specific referral "program"?

Do you have signs/notices about it in the lobby? Rooms?

Do staff ask "did anyone refer you today?"? Do they remind tanners about the rewards in referring others?

ARE there rewards in referring others??

Ever run a referral contest?

Have any "ambassadors" at local schools or businesses that are "Super Referal Drivers"?

How many people have you PERSONALLY "referred" to your own salon?

Do you have any incentives for staff to refer their friends, relatives or people they run into on the street?



If "word of mouth" is your BEST form of marketing -- are you giving it your MOST amount of attention?

[drone08]

Great info ANN. I think referral packages would really boost customer appreciation.

[JustTans23]

Does anyone give their employees something for refferring clients. Say my employees hand out my referral cards. What kind of stuff would you give an employee to reward them for however many clients come in?

[InternationalTan]

^^just thank them, show them you appreciate them. They SHOULD Be referring everyone there, they do work there and im sure they want their friends to come in when they are working.....

[JustTans23]

Well I mean if they go out of their way or something. Like say they are going to a party and they hand out a bunch of referral cards.

[aimeekat]

Commission. I let them write their name on the card when it's handed out.

You could do points. Who ever has the most points wins a gift certificate to where ever they want. Or a bottle of anything they want.

[enuf]

sunsally, I was told to handout referral cards only to your members, not to anyone that purchases a pkg. Would you give a dollar amount so they can purchase anything in the salon. Would you put an expiration date on the referral cards?

[phattmatt]

If you can't get across to your current employees that they need (hand out first tan free cards)to market the salon to bring in more customers do you really think they are selling the salon when your not there?

[JustTans23]

Its not tha tI can't get across to them, I have never done referral cards before so I just wanted to know if anyone else did anything.

[JustTans23]

Enuf, Din had a good idea of basically paying commission. For every dollar the referred customer spends, you give the customer that referred them 10% to use towards tanning or something.

[sunsally]

Personally, I can't imagine a reason to limit referral cards to your members only -- they are doing YOU a favor by sending in business. And a non-member might refer someone who will become a member! ANd maybe talk them into finally signing up too.

Now - if you want to try to give your members "extra" perks than a non-member when they refer - maybe. I wouldn't, but again, it's because I see the referral helping me more than them so I don't want to give ANY reason for them not to do it wholeheartedly!

As for staff -- you don't "have" to give them anything more than a thank you - but sure, everyone likes a little "extra incentive" now and then! They don't own the place - I don't "expect" them to talk it up all the time - it is just a job. So to go the extra mile - like selling lotions or big packages or other things you may commission - sure, add it in.

We had one salon where we paid 25cents per referral when it first opened. Only "risk" there is that they may hand just a walk-in new customer a card and say they "referred" them. Oh well - tell them not to and if you catch them, penalize them by taking their other referrals away for that time frame.

[enuf]

Sunsally, Would you put an expiration date on the referral card? Would you give bonus bucks or upgrade to the person that brought in the new customer? Is it only when the new customer comes in and buys a pkgs or do you give it to them when they bring in the card for a week free. I guess what I'm trying to say is do you put any stipulations on the free pass.

[sunsally]

I don't like an expiration date - if you dig that thing out of your purse 18 months from now and are interested, I still want you to come in!

I give a free upgrade to the customer that referred the new client. Period - just for them walking in the door. Our "offer" to all new customers is 3 Free Tans. So if they come in to get their 3 "free' (which they usually upgrade for a price to other equipment), then the person that sent them would get a free upgrade.

Then, if the new customer BECOMES a "client" (e.g. buys a package or membership) - the one that referred them gets another upgrade.

Can do it the same way using "bonus bucks" or anything else.


Can take it further -- run a referral contest. Now they all still get your "normal" incentives (e.g. the free upgrade), but keep track in the lobby of your "leaders" and give the winner something else -- like a free MONTH of tanning or a free bottle of lotion. If even 1 or 2 REALLY get into it -- what a bonus for you and your salon!

[Island Cove]

hey great post sunsally! You kicked me in the butt to do some of the things i've been thinking about, but also took me back to my "roots" that gets forgoten. I think we become complacent when our salons get busy and we stop doing or realy pushing the promotions that helped build up our clientel in the first place. Also, the 3 free tans thing is great and reminded me of something, it takes 3 times for something to become habit? for lack of better phrasing, i just can't think of a better way to say it. And we get caught up in "never give something free" that is preached on these boards, but thats usualy what we all started doing to drive traffic to us in the first place. Instead of getting just one chance to get them to buy something, which most won't their first time, now you get 3 times to work it. Great stuff!

[baskinthesuntanning]

We give any customer who refers a friend, (friend who buys a package), a free tan. If they only do airbrushing we give them $10 off their next airbrush.

Normally when someone is new we ask them how they heard about us, and that's when we know who sent them or not. We then memo the referrer's account. If they don't know that person they referred came in, they are usually pretty astonished when they hear, "don't worry about it today it's on us, thanks for referring ____". Then they go home and tell another friend about how "cool" we are and loyal to actually let them know about it... Cycle just keeps going ...

[enuf]

Sunsally, thanks for that post it was great.