Great Example of Asking for Referrals
Posted on August 10th, 2007 in Business, Cool |
Scott Sherman Automotive recently caught my attention with a really well executed referral marketing program. Dave had recently gotten some work done there and a few days later got a postcard in the mail. The postcard said “Give this to someone who isn’t a customer and we’ll give them a free oil change. Also, if the person you send comes in, we’ll give you a free oil change too.”
Now this is cool on many levels. First, they’re following rule #1 - ask customers for referrals. Second, they’re making Dave look good because he gets to give me a free oil change. Third, Dave gets a free oil change too so he has a really strong incentive to get me to go in. I’m a big fan of symmetric referral bonuses - basically, if you send me someone, we’ll give you both something cool. This rocks because you’re no longer selling your friends out to get a free bobblehead - you both benefit.
I did go in for my oil change and they rocked - no attempts at gratuitous upsells. And, sure enough, I received a referral postcard in the mail 2 days later. They delivered a quality experience, a friend and I will get a free oil change, you can bet I’ll spread the word.
2 Responses
Great article Rahul,
Fully agree and support your ideas on symmetric referral bonuses.
Incentives are such an important and powerful strategy in referral marketing and when used as per the example in your article can be very successful. Many business owners do not see incentives as an “investment” in gaining new customers and increasing existing customer’s satisfaction and loyalty.
Best regards
Vince Golder
Thanks for your thoughts, Vince. It’s always surprising given how powerful word of mouth is that people aren’t doing more to encourage referrals.
Your point about increasing existing customer satisfaction is spot on. Often ignored unfortunately.