How do Bullfrog dealers clone customers with customers? Referral selling is almost risk-free and is one of the easiest and most profitable ways to obtain customers.

Referral selling or Word of Mouth (WOM) Advertising is the cheapest form of advertising, yet only 1 in 100 businesses takes full advantage of its potential. The rationale behind offering a referral program is to save money rather than spend money on advertising with low or no return on investment. With traditional advertising, you spend money to advertise your products and store, and that advertising has no guarantee of converting into sales. With an incentive-based referral program, you only spend money when you sell spas.

Clearly, putting time and dollars into referral marketing offers a much better return on investment.

Here are three different types of referral systems:

A Passive Referral System is any referral system that relies on your customer to take the initiative to recommend your product or service to friends, family etc.  The system is passive because you get no control over the name, address, phone number, or email address of the referral until they make contact with you. Traditional word-of-mouth advertising is a Passive Referral System.

A Passive Incentive System uses a coupon or certificate given to your customer to pass out to anyone they would like to refer. It’s good to offer some kind of incentive for referrals but, again, you rely on the customer’s referral to take the initiative to call you or to come in before you know who they are. The final step in this system is to reward your customers when one of their referrals comes in and converts into a Bullfrog Spa customer.

A Pro-Active Incentive-Based System puts you and your sales force in control of the referred names, phone numbers, emails, and addresses rather than relying on customers to “spread the word” on their own. This type of program is administered by asking for names and phone numbers from your customers and giving them an incentive (gift, discounts, store credit, etc.) in exchange for their list. Customers then receive additional cash or another incentive when their referral buys a Bullfrog Spa. The more value you offer them in incentives the more work they will do to convince their friends to buy.

Remember: Initial customer satisfaction is key to obtaining referrals.

Program Objective

Create an easy-to-use referral system to gain additional leads from customers during the closing process. Your program may need to be expanded to capture leads from past customers. This system will not only help you to gain additional sales but will reward and develop stronger relationships with your existing customers.

Your program needs to be attractive to the referrer and have a strong compelling offer.  If you stop selling your customers, they cease to be your customers. If you continually offer something of value to them and they consistently buy, your customers will feel an even greater bond with you and your company.

Program Tips

To effectively execute your referral program, there must be an additional incentive to the referred person. Some businesses will use a coupon to give the referred person a discount on their purchase. It’s also important to note that your tracking system must be in place and functioning before you start. Your entire team needs to be aware of exactly what is going on. Ask for their input on what they think will work best for them on the tracking side of the program. Your program must be efficient so it is very easy for your customers. Finally, you must treat your customers with absolute respect, so they feel completely safe in giving up the names of people they know.

Issues to Overcome

Of course, there are challenges to growing a referral program. Not everyone will feel comfortable or feel safe giving their friends, family, and associates names and addresses. Their friends may already have loyalty to one of your competitors. Your customers may not have time or don’t believe that they have time to promote. Or the incentive may not be enough to make it worth their effort.

Sure, not all customers will refer business. But some will, and it only takes one sale for your referral program to be a success.

Interesting Referral Marketing Stats

  • 84% of consumers reported always or sometimes taking action based on personal recommendations.
  • 43% of social media users report buying a product after sharing or favoring it on Facebook, Twitter, or Pinterest.
  • Over half of purchases inspired by social media sharing occur within 1 week of sharing or favoring.
  • 80% of purchases resulting from social media shares occur within 3 weeks of sharing.

Take Action with this Idea

Take a phone video or photo of the customer(s) after the sale. Ask them what’s the first thing they can’t wait to do once their spa is delivered. Then ask them to like you on Facebook where you are about to post that video. The average Facebook user has over 200 friends. Enough said.


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