How to create a referral system.
For most jewellers ‘word of mouth’ is the lifeblood of their business. So much so that almost half of sales can be generated from this form of attracting business. Though too often we just leave ‘word of mouth’ to chance. We have no system in place to control, manage and actively encourage word of mouth to occur. So let’s get pro active and take control of the ‘word of mouth’ by using a referral system.
How to create a referral system
The referral system is quite easy to set up. We suggest that you appoint one staff person to be in charge of the system, and it is their role to ensure the system is in place. The steps for the referral system can vary, but as a simple example try the following:
- Asking for the referral:
- You can ask for the referral by a follow up letter or phone call.
- You can give the customer something of value that they can pass on to freinds and family – for example a business card with a free ring clean voucher or $20 off a purchase voucher.
- You can give the customer a referral card that rewards both the customer and the referral client,
- Tracking the referral:
- Each time a customer buys from you it is important to ask: "how did you hear about us". Then have a system to take a note of the answers.
- In Swim, enter into the system who the customer was referred by (in Swim this is the 'referred by' field).
- Reward the referral:
- An important part of the referral system is to reward the customer for their referral. This reward often works best when it is a surprise. Each week do the 'Customers who referred' report in Swim (under Customer reports). Then send those referrers a thank you note (and a little surprise gift if you wish).