• Posted On Tuesday, July 12, 2016 by Robert Smith

    Businesses in all different markets and niches use referral programs to boost sales. If a customer receives some type of incentive for recommending a business to a friend, family member or coworker, he or she will feel more inclined to do so – it's just that simple. So if you're struggling to achieve your sales quota, keep reading to learn more about referrals and how they can generate more commercial office moving sales leads.

    How it Works

    In case this is your first time hearing about referral programs, let me explain how they work: basically, a referral program involves rewarding customers or clients with some type of incentive (e.g. cash, credit, gifts) for sending new customers their way. DirectTV has a referral program in which it rewards customers a $100 credit for every new customer they refer. If you refer 5 customers, for instance, you'll get a $500 credit on your bill.

    Of course, that's just one example of a real-world referral program. There are literally thousands of companies, big and small, with their own referral programs.

    Benefits of Referral Programs for Office Moving Businesses

    The greatest benefit of using a referral program is the simple fact that it attracts new customers. When a customer refers a new customer to your business, you'll generate more sales – all for the minimal investment of providing the referrer with a small incentive. It's a powerful marketing tool that allows businesses to focus their time and resources elsewhere, such as growing and expanding their business.

    Furthermore, a study conducted by researchers at the Wharton School of Business found that referred customers are 18% more likely to stick with a company than a standard, non-referred customer.

    Tips on Hosting a Referral Program with Your Office Moving Business:

    • Don't underestimate the importance of timing when it comes to referrals. Asking customers to refer your business to a friend or family member too early may discourage them from doing so. But asking too late can be equally as bad. You must balance a fine line between the two by asking for referrals during the middle of the sales funnel.
    • Offer a meaningful incentive. You really can't go wrong with giving cash or gift cards to customers who refer new customers to your business.
    • Keep track of your referrals. I know this probably sounds like common sense, but it's still worth mentioning that you should keep track of which customers are sending referrals your way. If you promise a reward but fail to deliver, it could turn positive comments and praise into negative emotions.

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