Incentives for referrals?

[clnfrk]

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.

 

[BobD]

Do you have a fixed location or are you mobile?



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

 

[clnfrk]

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.]

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.

 

[Driven Auto Detail]

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]

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]

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

 

[imported_Ivan Rajic]

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]

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?

 

[imported_Ivan Rajic]

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]

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]

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?

 

[imported_Tex Star Detail]

I offer pre-paid gas cards. $10 gas card for EVERY customer they send. Though, I only give out gas cards for FULL DETAILS. Not some wash and vac package.

With the gas prices like they are, they are ALWAYS happy to get them.



I also give extra perks to my VERY GOOD and LONG TIME customers. (ie. $50 gift card to a nice Restaurant) Usually send it to them without them knowing what for. Next time I service their vehicle, I usually get half of that back in a tip, and so on and so forth. You have to spend money to make money.

 

[Woob]

Do a quality job that builds the best referral service, word of mouth. I would NOT give money. Seriously which business gives you cash back for referring them? Give them a discount on a next service, but most important be appreciative verbally.

 

[RTexasF]

I've picked three regulars that are in influential positions where they work. When they refer a customer to me for a full detail (and the work is paid for) they get a free wash & vac, exterior windows only. Time to claim the freebie is two weeks to allow for possible weather variations. It's little sweat off my brow and is working well for me. I like the $10 gas card idea too, ingenious.......and NO sweat from the brow.



In all candor I don't consider myself a professional yet so I may be out of turn speaking in this area. Just the same it's another angle that someone might think worth considering.

 

[imported_mirrorfinishman]

How many of you offer some sort of incentive to clients for sending you new customers?

I mail out a 'Twenty Dollars Off' Certificate (to be used towards their next detailing) to any customer who send me a new client. Over the years this type of reward has worked out very well.



Some people who send me two or three clients a year save $40 to $60 off their next detailing, while other clients appreciate the gesture and don't even use the certificate.



What any type of incentive does is at the very least is let your customers know that you would like them to tell their friends and family about your services. That is the primary goal.

 

[imported_mirrorfinishman]

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?

I would not recommend giving them cash. That would be long forgotten by the time their next detailing rolls around. It would be much better to give them a $10 (or $20) off certificate that they could use towards their next full detailing.

 

[kompressornsc]

Since I'm in the Incentive Industry...



Most effective incentives are-

1. imprinted gifts

2. gifts

3. travel

4. gift cards

5. cash

6. discounts on future purchases



Most desired incentives are-

1. cash

2. gift cards

3. travel

4. gifts

5. imprinted gifts

6. discounts on future purchases



Our industry does a survey almost every year and the results are the same.



You'll notice a discrepancy between effective and desired. What you see is that people prefer flexibility / choices, but they are the least effective to get that person to continue the behavior (whether it's being a safe worker, attendance, or referrals). What happens is that the most desired incentives are quickly forgotten. Cash is used to pay the electric bill, gift cards buy diapers for the baby or gas that is quickly burned up. Travel is one of the best in both categories (why so many companies offer travel programs as awards), but not applicable to detailers.

The top 3 for effective all have a similar component - longevity. Gifts are obvious, and then travel has the 'memories' factor.

The most important part of any referral program is to have a plan. Promote it to your customers, (Receive a FREE Swiss Army knife for each referral), follow through, and show your appreciation verbally as well.

 

[dpsorg]

My standard disclaimer: I'm not a pro detailer. I would guess that you have at least 3 different kinds of customer, and there might not be a single type of acknowledgment that would appeal to all three (or however many).



One type is the high-end car owner, the executive. He's driving a high 5 figure or more car and will be insulted by almost any amount of cash. He's giving you referrals because you're professional in your demeanor and results. He's doing his golf buddies a favor by referring you. In my opinion, that kind of guy gets no advanced "offers", he's likely not induced by such, maybe even offended. Instead, he gets the unasked for extra services at no charge as you deem him worthy, with an "I appreciate your referrals" when he picks the car up.



Another type is the female; usually a busy exec. or housewife with the SUV. IMO you can ask gently for referrals and use a gift cert. for a nice "luncheon" type of restaurant or a Starbucks card or the local bookstore. Sorry to stereotype, but they wouldn't likely even notice any free extra detailing services.



Third type is the younger guy, maybe a little stretched on his car payment, pretends he knows what's hip with detailing, but does truly appreciate it. Generally more flash than cash kinda guys. He's the guy you can be blunt with, humorous, "hey, bring me some business, buddy!" They're the ones that would go for future discounts on their cars, gas cards, MF towels and QD, etc.



There may be some other "types", you guys would know better, but each of them probably would respond best to different tactics. Sorry if it makes it more complicated, but I do think there are important differences. I used to sell cars (and other stuff) and to treat everyone as equal in what motivates them is a mistake.

 

[todd@bsaw]

I think you just nailed my top three demographics, dp.

This is one reason why my 'extras' are dependant on how well I know my client. One of the best things you can do in this business is know your clients personally and know what they like.