Turning your sales team in to an unstoppable customer conversion machine is as easy as referrals, according to Tim-Peniston Bird, Founder & CEO of Orangutan, leaders in strategy, reward and technology for businesses.
“87% of satisfied customers will refer on average four times a year. With the right stimulus, this figure can hit much higher levels of 12-15 referrals per customer per year. Add to the mix that customer referrals are likely to be high quality leads, because referrals been pre-sold by people they know, like and trust. It’s a potent concept”
The opportunity is there. But, be honest, is your business generating anywhere near that number of leads? And, if not why not, if you’ve answered no?
What’s the best way of driving quality leads through word-of-mouth referrals?
“People often tell me incentive schemes don’t work for their audience,” continues Tim. “However, in my experience, this is rarely the case.”
Referral schemes need to be powered by rewards that are compelling enough for your customers to be bothered about making extra effort.
A points-make-gift-vouchers scheme might not be enough to turn your happy customers in to raving fans. The more strategic you are about offering what makes your customers tick, the more referrals your sales team will receive.
Many referral schemes focus on cash commissions for the referrer. Yet research demonstrate that a combination of
- Exclusive, non-cash rewards
- Providing benefits for both the referrer and the new customer
are more effective at driving referrals. Additionally, it costs less, too.
In fact, it can be so effective that Orangutan offer a unique Pay Per Sale model – where you only pay for the referrals you convert.
A gift that keeps on giving
A well thought out and executed referral scheme is a rinse and repeat formula that keeps on producing for your sales team.
Referrals deliver optimum return on investment. Once you’re up, running and committed to keeping the momentum going, your sales team will benefit from deal sealing by numbers.
It’s an uncapped layer of sales activity that doesn’t demand too much time and money, where each generation of customers triggers yet another set of hot leads for your sales team to convert in to new customers.
Our programmes typically deliver 47-900% increases in sales and return 20-40 times the initial cost of funding them. Our bulk buying power means we can access 150% greater rewards than your budget and guarantee the increase in sales will be more than the cost of funding the programme.