p38-39 SFH Sept18 15/9/09 16:38 Page 38
knowledge selling from home
ttglive.com
Referral incentives
One good turn
deserves
another
Using incentives to encourage customer referrals
is becoming a popular method among homeworkers
to boost business. Debbie Ward finds out who is
doing what and how to ensure giveaways don’t
compromise commission earnings
B
usinesses that thrive on referrals The vouchers are valid for two years.“It was
commonly give customers an a case of coming up with something that was
incentive to recommend a friend. going to be worth having, so I could encour-
Banks, breakdown services, age them to recommend lots of people, but
catalogue companies and gyms provide such not so silly that I was out of pocket,” she says.
carrots, as do some homeworkers. The initiative has netted several new cus-
In Richmond, North Yorkshire, Future tomers. “The point is to have it snowball, so
Travel personal travel adviser Joanna Parkin that the person who has been recommended
gives £5 high street vouchers to clients will recommend someone else,” she says.
whose referrals lead to a booking. “The local
barber recommends me, so I always put a Business bonus
voucher in to her, while another woman Two businesses help generate new clients for
has got about £60 off me,” she says. “She Lou Baggs, a Stroud-based personal travel
recommends lots of people and I’m fair like consultant for Hays Travel. In return, she
that. They love it, even if it’s only a fiver. rewards them with discounts for their
And they are tax-deductible, anyway.” customers and staff. There is a carefully
Lou Taylor, a sales support manager for calculated scale to attract big spenders
Holiday Experts, has recently started a without losing too much commission.
similar system. “When a customer books Her husband’s gym displays posters
with me I send them a postcard with a beach advertising 5% off holidays costing more
scene on the front that says, ‘refer a friend than £2,500. At a corporation promoting
and get £25 off’,” she says. “They can use it her services, some director-level staff have
only on new bookings and don’t get it until netted discounts of 7% by booking holidays
the recommendation has travelled, to cover worth more than £25,000.
for cancellations. There is no limit, so if they Lou rewards referrals from individuals
recommend eight people they get £200 off.” with £10 M&S vouchers. One honeymooner
38 18.09.2009
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