Increasing Referrals & Repeat Business

Tip 4: Develop a Points System for your customers

How: Assign points that they can redeem when they refer people to you.

Why: It is your version of a frequent flier system to drive customer loyalty and new business.

Tip in Action: Learn what tools are available to you and your life can be that much easier. A points system can seem like a large task, but there are great tools that keep it simple. When evaluating your points system, a good rule of thumb for determining a points to dollar ratio is to treat each point as a 10% value to a free item or service to give away.

This keeps it simple to setup, and with an automated system in place a breeze to manage.

Tip Success: Lear Capital, a precious metals and coins company, decided to offer 100 points for every referral that resulted in a sale. With 10 referrals, each customer automatically received a 1 oz. American Gold Eagle, worth over $1,000 dollars.

Fortunately their points system was tracked and managed automatically. This removed the complexity, insured every customer was rewarded properly, and no misuse of the points system took place.
July 12, 2008|Tipster: Nicole Wicks

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