Why I Prefer to Go The Extra Mile

Summary

• I believe in offering something extra for referrals rather than just removing a pain.
• To incentivize people, you can either remove something that’s causing them pain, like a payment or time, or you can add an incentive.
• I prefer adding an incentive because most companies typically offer things like comping a month, which is less impactful.
• Sending a $500 gift card, for example, is much more meaningful because it's not as common and stands out more.
• When thinking about referral incentives, always consider how much you can afford to pay for acquiring a new customer.

Video

How To Take Action

Implementation Strategies for Referrals and Incentives

1. Add Meaningful Incentives:

   • I would suggest you offer something valuable for referrals rather than just removing a cost or pain. This might mean giving a gift card or a small cash bonus. It's memorable and not something every business does.

2. Calculate Affordable Incentives:

   • A good way of doing this is to calculate how much you can afford to spend to get a new customer. For example, if you can afford $500, make that your incentive. Make sure it's significant enough to catch attention but also within your budget.

3. Avoid Common Incentives:

- Think beyond the typical "one month free" approach. Most companies do this, and it doesn't stand out. Instead, offer something unique. Maybe an exclusive product, a special service, or a significant monetary gift. This can leave a lasting impression.

4. Communicate Clearly:

   • When implementing these strategies, make the terms clear and simple. Explain the referral process and what the referrer will get in plain language. This helps avoid confusion and encourages participation.

5. Monitor and Adapt:

   • Keep track of how well your incentives are working. Are people referring others? Are new customers coming in? Adjust your incentives as needed to ensure they're effective and sustainable.

By focusing on these strategies, you can attract more customers through referrals without spending too much time or money. The key is to make your incentives meaningful and different from what competitors are doing. This approach is efficient and high-value, ensuring you get the results you want.

Full Transcript

I'm a fan with referrals of giving them something extra rather than removing away a pain so if you look at like how to incentivize people it's either remove something that is a current pain it could be a payment it could be time it could be anything right or you could add an incentive I'm a fan of adding an incentive for a referral because most companies say We'll you know comp a month we'll do this we'll do that I think when people are like we'll send you a $500 gift card that's a lot more meaningful in my opinion because it's not as common so that's the first thing I would do is like consider like how much could you pay for a customer as a referral