How to Set Up a Referral Program

Are you looking to win more business? Did you know that 70% of lawn care operators rely primarily on word of mouth to grow their business? Let’s pair that statistic with these that show how incredibly valuable referrals can be:

  • When referred by a friend, people are 4x more likely to make a purchase.
  • Referred customers' LTV is 16% higher when compared to non-referred customers.
  • Customers acquired through referrals have a 37% higher retention rate and 81% of consumers are more likely to engage with brands that have reward programs.
  • Referred customers have an 18% lower churn than customers acquired by other means.
  • You can expect at least 16% more in profits from referred customers. [1]

All that to say that referrals help you win new business faster, keep that business longer, and profit more from that business. We’re working on the ability for you to effortlessly set up and manage a referral program, but even now you have the ability to apply a flat amount discount to any invoice.

Here’s how you can get your own referral program up and running:

  1. Determine how much of a discount you want to offer for a referral. It doesn’t have to be huge, but you want it to be enticing and very clear. What qualifications does the referral need to meet for the person who referred them to get the reward? Does the referral have to pay for a certain amount of services? Become a recurring customer? If you’re primarily focused on lawn care maintenance, $10-$20 off of their next service should do the trick! 
  2. Message your clients something like this:
“Hello, [first name]. I was reaching out to let you know that I am starting a referral rewards program that you could benefit from! Any time you refer someone to me that becomes a repeat customer, I will give you $[amount] off of your next service. Just make sure they mention your name when they reach out to me and I can apply the reward to your next invoice. I really do appreciate your business!”
  1. When you get a referral that becomes a paying customer, simply go to your client’s account that referred them to you, tap “Add Payment”, select “Discount” from the payment option dropdown menu, then enter the amount of the reward.

Do you need help thinking through your referral program? We’d love to chat. Don’t hesitate to reach out.

—References

[1] 15 Referral Marketing Statistics You Need to Know

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