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How to Turn Your Best Customers Into Your Best Advocates

Why Your Home Improvement Business Should Have a Customer Referral Program

Customer referral programs are a great way to get new customers by leveraging your current customer base. Business owners interested in creating their own referral program can achieve success by making sure that their program easily communicates the high rates of satisfaction shown by current customers, and provides those who join with a genuine incentive.

For instance, anyone that’s an enrolled member of the GreenSky® Loan Program can earn $250 for every new contractor they refer. Our referral program makes things quick and easy. Once a referred business successfully uses our program, it’s money in the bank for you, too!

 

Here are a few of the business goals you can accomplish with a customer referral program. Gather your ideas and start planning what you can offer your customers once you’ve finished reading. 

Generate New Leads

Attracting new customers is the most important part of growing your business. Customer referral programs are a smart way to generate new leads from customers you already have.  Positive word of mouth marketing is some of the best out there!

  • 1 offline word-of-mouth impression drives sales at least 5x more than 1 paid, and much more (as much as 100 times more) for higher-consideration categories2.

Raise Brand Awareness

Current customers who refer you are obviously fans of your business. Why not let them serve as ambassadors to the quality work that you do? Provide them with opportunities to spread the good word by offering cash incentives or valuable promotions, and you’ll likely provide yourself with greater brand awareness.

  • 77% of consumers are more likely to buy a new product when learning about it from friends or family3.
  • 74% of consumers identify word-of-mouth as a key influencer in their purchasing decision4.

Say Thank You

Customer referral programs are a great way to say thanks to your current customers. When they receive a kickback from referring a new customer, they’ll be even more inclined to spread the word about your business. All business owners should jump at the chance to make their customers happy.

  • Customers acquired through referrals have a 37% higher retention rate5.
  • 88% of Americans say they would like some kind of incentive (money, product, services, loyalty points, early access, swag) for sharing a product via social media or email6.

Promote Brand Loyalty

If a customer is happy with the service you’re providing them, they’re highly unlikely to leave your business as long-term customers. Promote a sense of brand loyalty by giving them a reoccurring loyalty incentive that they’ll want to get again and again.

  • The Lifetime Value for new referral customer is 16% higher than non-referrals7.
  • 82% of U.S. adults are loyal to brands and 84% are loyal to retailers8

Turning your best customers into referral program advocates is easy once you learn what they truly care about. Incentivize customers you already have to spread the word and watch your referral program grow! If you would like to learn more about the GreenSky referral program, please click here. 

*GreenSky® is a loan program name for certain consumer credit plans extended by participating lenders to borrowers for the purchase of goods/services from participating merchants/providers.  Participating lenders are federally insured, federal and state chartered financial institutions providing credit without regard to age, race, color, religion, national origin, gender or familial status.  GreenSky® is a registered trademark of GreenSky, LLC.  GreenSky, LLC and its wholly-owned subsidiaries service the loans on behalf of participating lenders. 

1http://www.syncapse.com/value-of-a-facebook-fan-2013/#.W7IwuGhKiUn
2https://womma.org/wp-content/uploads/2015/09/STUDY-WOMMA-Return-on-WOM-Executive-Summary.pdf
3https://www.nielsen.com/us/en/press-room/2013/global-consumers-more-likely-to-buy-new-products-from-familiar-b0.html
4https://www.adweek.com/digital/ogilvy-cannes-study-behold-the-power-of-word-of-mouth/
5https://www.extole.com/blog/15-referral-marketing-statistics-you-need-to-know/
6https://www.getambassador.com/blog/survey-says-cash-is-king-when-it-comes-to-getting-more-referrals
7https://faculty.wharton.upenn.edu/wp-content/uploads/2013/05/Schmitt_Skiera_VandenBulte_2013_Referrral_Programs_2.pdf
8https://www.businesswire.com/news/home/20170815005733/en/Prices-Raise-Customer-Loyalty