How To Encourage Referrals

A great way to grow your business is through referrals. If you ask people what the most successful way to grow their business is, often you will hear through word of mouth referrals. The reason is because instead of having a cold contact that you have to get to know, a referral is a warm contact. It’s someone who has already been introduced to you by someone that they know and trust. That automatically helps your business have that know, like and trust factor. If their friend likes your business and they trust their friend, it gives you instant credibility.


How do you encourage more referrals? The way we like to encourage more referrals is through rewards, specifically sending out gifts to your referral partners. If someone refers a friend to you, you should follow up with the referral that they’ve given you. You should also, always, send out a thank you for giving you that referral.


Why is that so important? You may think, I don’t know if I want to invest in a referral because the lead may not turn into a paying client. But if you don’t let the referring person know how much you appreciate it, they’re less likely to send you a referral next time. However, if they get a surprise gift in the mail from you  when they were just referring you to be nice, it makes them feel even better about referring people to you. If the referral turns into a really big sale, you should really consider giving a bigger gift.


Some gifts can cost as little as five to ten dollars. It doesn’t have to be big and fancy. But if someone has made a higher-cost investment with you, thank the referring partner appropriately.  If someone has made an investment of $5,000 dollars with you, sending out a $100 gift is only 2% of your sale.  It is very small compared to the money you will make from that referral.  Receiving a $100 gift makes a big impression to the referral partner.  It puts you even more top of mind than you were before.

Referral Reward Plan

When a referral happens, we know you appreciate it and you want to thank them appropriately.  If you don’t have a plan in place, it slows you down.  You have to put thought into it.  It involves deciding what to send, purchasing it, and sending it.  You may be stuck in the “good intentions” phase and never send something because you don’t know what to do.

At Touch Your Client’s Heart, we develop gifting plans for your referral partners. We will do all the research for you so you can come up with great gifts to give to your referral partners. We choose gifts in different price ranges. Once your create a plan, it is easy to act on it. It goes onto autopilot. You know exactly what you’re going to give as a thank you for a referral every time it happens.

If referrals are vital to the growth of your business, you need to create a formal referral gift plan. Then when you receive a referral, you can immediately reward the referring partner.  This will keep your referral pipeline full of quality referrals from people who are happy to help you.

Share Your Thoughts