Incentives for referrals?

clnfrk · 04-13-07, 11:13

How many of you offer some sort of incentive to clients for sending you new customers? I am strongly thinking about doing such a thing and I'm trying to get an idea of what I should offer as a "reward" for them sending me new business. Any help is greatly appreciated.

Danase · 04-13-07, 11:17

Do you have a fixed location or are you mobile?

You could offer something like $x amount off their next visit.

clnfrk · 04-13-07, 11:49

Quote:

Originally Posted by Danase

Do you have a fixed location or are you mobile?

You could offer something like $x amount off their next visit.

I am mobile. What about if they send me multiple new clients? Do you think it would be a good idea to give them some sort of monetary compensation for each new person? I don't know... maybe $10 or so for each new referral?

tom p. · 04-13-07, 11:57

You'll find that rewarding and training existing clients to introduce you to new folks to be your best "new client acquisition technique"

I need to think about what would be approriate reward-wise.

mshu7 · 04-13-07, 12:11

I'm also interested in this. Another question along the line, what if some one has say 3-4 cars for you to detail. Do you provide some sort of discount and if so, how do you determine something like that.

mose · 04-13-07, 12:20

I just had a customer refer three details to me. I got them a $50 gift certificate to dinner at a nice restaraunt. The $600-$700 I will make from the details will more than pay for that. Plus it will keep my customers thinking of me!

bigltc · 04-13-07, 02:54

My dentist gives movie tickets with popcorn and a drink for referrals. My mechanic gives oil changes with a tire rotation etc.

lecchilo · 04-13-07, 03:05

I've bought a customer a gift certificate before as well, after he brought me 2 of his cars and 3 referrals... the usual incentives from me are $$ off their next detail or a free QD and towel, or something like that

clnfrk · 04-13-07, 06:47

Quote:

Originally Posted by lecchilo

I've bought a customer a gift certificate before as well, after he brought me 2 of his cars and 3 referrals... the usual incentives from me are $$ off their next detail or a free QD and towel, or something like that

lol... are you sure that is a good idea to be giving your customer QD and towels so that they can potentially start the marring process all over again thanks to you?

On a more serious note though... what do you all think about my idea of just giving them cash for each new referral? Gift certificates are a great idea and all, but who's to say that they even shop, dine or even go out to watch movies for that matter at the places that these gift certifcates are intended for? Although plain 'ol cash money may be a bit more impersonal, at least you know that it will go towards something of said customer's choice as opposed to a gift certificate that may well just end up never being used or even lost.

Also, would you guys agree with me in assuming that the promise of cash compensation would be the most effective means for motivating existing clients to send new referrals?

lecchilo · 04-13-07, 07:17

Quote:

Originally Posted by clnfrk

lol... are you sure that is a good idea to be giving your customer QD and towels so that they can potentially start the marring process all over again thanks to you?

On a more serious note though... what do you all think about my idea of just giving them cash for each new referral? Gift certificates are a great idea and all, but who's to say that they even shop, dine or even go out to watch movies for that matter at the places that these gift certifcates are intended for? Although plain 'ol cash money may be a bit more impersonal, at least you know that it will go towards something of said customer's choice as opposed to a gift certificate that may well just end up never being used or even lost.

Also, would you guys agree with me in assuming that the promise of cash compensation would be the most effective means for motivating existing clients to send new referrals?

Well before I give it to them I do tell them how a QD should be used, or whatever else I give them... either way, it's either them putting swirls in their own cars with the QD/towel I give them, or the guy that washes their car putting swirls in their car...

I don't think cash is a good idea because it might turn on you... what if every client you get recommends someone, and what if that someone just wants the simplest thing done like a carwash, or just a wax, or something like that... you won't lose money, but you'll definitely be making much less than you should be...
I think the best thing is to offer a discount on the next visit...

todd@bsaw · 04-13-07, 07:56

I have 10% off cards that I give good clients with a space for them to write in their own name. They can either use the 10% off their next detail, or give it as a referral. When I receive them as a referral, that client gets 10% off and the referree gets 25% off.

Only catch, they have to use the 10% cards up within 3 months of of getting them. The 25% discount goes in my records towards their next detail so it's more benefitial to them to give the cards away.

I like the QD/towel idea, though.
I also have a weekly wash client that refers all the guys in his office (today was nice out and I had 4 cars today including his Lexus). He just wanted his washed but I conditioned his leather and applied rainX just as an extra for getting me more jobs.

clnfrk · 04-13-07, 08:19

Quote:

Originally Posted by lecchilo

I don't think cash is a good idea because it might turn on you... what if every client you get recommends someone, and what if that someone just wants the simplest thing done like a carwash, or just a wax, or something like that... you won't lose money, but you'll definitely be making much less than you should be...
I think the best thing is to offer a discount on the next visit...

Good point... I didn't even consider such a scenario. Well then, how about offering a certain incentive for referrals resulting in either one of my 3 detail packages and an even more generous incentive for referrals resulting in a detail and enrollment in one of my maintenance plans?