When it comes to bringing in new customers, it’s hard to top the value of a referral. Across industries, the conversion rate for referred customers is three times higher than the average lead conversion rate, making referred customers far more valuable.
It makes sense too—aren’t you more likely to trust a friend’s endorsement of a product or service than an ad? A business can make meaningful referrals happen by offering customers an incentive to spread the word. These five referral gift ideas can help you reel in high-value customers.
Share a link, score rewards
Earning a referral doesn’t need to be complicated. When a customer makes an online purchase, provide them with the option to share a unique link that takes people to a set of exclusive deals. The customer can choose to share this special link with family or friends and on social media. When a new user clicks the link, it triggers a reward for the referring customer.
Offer a tiered business referral gift as a thank-you. After the first referral, they receive a can cooler, the second nets a bottle opener and the third a rolling cooler. Watch the referrals keep coming, bringing a steady flow of new, high-value customers your way.
Partner up for a prize package
Partner with a like-minded or related business on a referral promotion. For example, a roofing company could partner with an electric services company. Or a smoothie shop with a nearby deli. When a customer makes an in-person purchase at your business, offer a coupon or discount code for your partner business. And that business can do the same for you.
This strategy positions you as a referrer, leveraging the relationships you have with your customers, and the relationship your partner has with theirs. What’s more, 69% of consumers are more likely to try a brand or business if it offers rewards.
With that in mind, a smoothie shop might welcome new customers with a free tumbler, or a deli might hand out a free sandwich-shaped stress reliever.
Hold prize draws for social shares
Encourage customers to build buzz about your business using social media promotions. When you launch a new product or run a sale, promote it on social and enter anyone who shares the post into a prize draw. You can run the promo for one day or offer one entry per day and run it for longer.
Once time is up, announce the winners on social media. Tag them and they may share your content yet again to increase your reach even further. Reward a top prize, like a hoodie, and additional participation rewards, like plastic water bottles, novelty footballs or magnets.
Give goodies—and to a good cause
Instead of just offering prizes or future discounts in exchange for word-of-mouth advertising, bring charity into the mix. Team up with a charity that has a mission that makes sense for your business. Every time a customer sends business your way, make a donation to the selected charity. Eighty-two percent of consumers want to buy from brands with values that align with their own.
There are many ways to get this project going. For example, for every in-person purchase, customers receive a coupon to give to a friend. When the friend returns with the coupon, your business donates to an animal rescue, food pantry or after-school program. You can also give out a branded promotional product. A bakery, for instance, could give out a whisk or measuring cup to each new philanthropy-minded customer. Donating to charity in exchange for a referral is a great way to showcase how your business values helping others.
Dangle a mystery prize
Add a twist to your business referral gifts by using the element of surprise. Instead of announcing a grand prize as a reward for a referral, make it a mystery gift basket. Theme it to your business or the season. A summer gift basket could include a towel, sunglasses and beach ball along with a spacious bag. In the fall, stock a basket with a cozy blanket, warm gloves and a mug perfect for hot chocolate.
Referral gift ideas that keep on giving
According to Nielsen®, 89% of people trust word-of-mouth recommendations from people they know over all other forms of advertising.
That’s why referrals can be so powerful. With these referral gift ideas you can embark on your journey toward increasing visibility and growing your customer base. Best of luck!
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