How to Launch Your Smart Referral System
Just like launching any other program, launching the customer referral system requires doing research. Find out whether there is such system in your market and if it exists, identify the way they work in great detail. Define the specifications of your business. What are your product and services? How much profit do you make? How much can you spend on marketing and how much discount can you provide?
Answering these questions, you can realize how much commission you can give. In the case of a grocery store, the matter is quite different from a restaurant, a sport club and a hair salon. Let’s assume you have 20% gross profit and you decide to put aside 5% of it for a customer rewards system and a customer referral system.
At this stage, your budget is defined. Make a list of gifts you can provide using this budget. Choose type of the gift to be either cash, coupon, or promotional gifts. You can spend the expenses on services such as free transportation, subway ticket or other in use services such as food coupon of a restaurant or the purchase coupon from a chain store.
Therefore, according to the amount you can spend as a referrer’s commission, make a list of services you can provide based on the amount such as restaurant coupon, concert ticket, etc. Cash is more appropriate for professional brokers, but 99% of referrers in the customer referral system are your present customers who prefer [customers] to receive other products. The amount of cash as the referrer commission might seem low and it might not be psychologically satisfying but in use services are of great applications for the customer.
You can cooperate with other businesses and use their services as incentives for your customers and in return, the other business can give your services to their customers as rewards1. This method is explained in details in the writer’s other books “Smart Marketing” and “Rewards Marketing”. How to Launch a Based on the research you have done specify which application you can use.
Online business applications are different from shop applications. Some cover both types of businesses. In addition to all the points mentioned in this regard, the first feature of an application is that it should be user-friendly and must support the type of your business. It should also be consistent with all the modern devices such as mobiles, tablets, and computers.
The other important thing is the easy applicability of that referral application for the audience. It should not confuse the audience with too many questions.