Referral offers that get customers to bring their friends

Word of mouth is often the best source of new customers for a local business. Referred customers usually stay longer, care less about price, and are often easier to work with, because a friend has already vouched for you.

Even so, many small business owners leave referrals to chance. They hope their regular customers will mention them in conversation with friends and neighbors.

You can get more referrals, more consistently, with a clear referral offer. It gives your current customers an easy reason to recommend you.

Reward both sides

The best referral programs usually reward both people: the customer who recommends you and the friend who books.

If you only reward your current customer, they may feel awkward recommending you for their own gain. Rewarding both sides usually removes most of this awkwardness, because your customer is now giving their friend a gift.

When your customers can say, "Here is money off your first appointment, and I get a credit too," they are much more likely to pass your name on.

An example of a referral offer

Look at how a local dog grooming salon can get more customers without spending money on advertising.

It hands out referral cards, or emails a link to regular customers, introducing the "Friends and Furry Neighbors" referral:

• What is included: $20 off the new friend's first full groom (bath, brush and nail trim), plus a $20 credit for the customer who referred them.
• The price: New friends pay $20 less on their first visit; the referring customer gets a $20 credit once the friend's appointment is done.
• Who it is for: Regular customers who want to share a groomer they trust with friends, family, or coworkers who just got a new pet.

This works because it makes it easy for regular customers to help their friends save money on something they need anyway, while the salon gets a new customer for far less than an ad would cost.

Make it easy to share

Keep your referral program as simple as possible. Avoid points systems or online forms that need an account.

Remind customers about the referral offer right after a great visit, for example when they pay or in your thank-you email. When they have just had a good experience, people are usually more open to recommending you.

What to read next

• Start with the group's main guide, Fix your offer before ads.
• Make sure referred visitors book when they reach your site with Website visitors, no bookings.
• Keep customers coming back with Turn one-time customers into regulars.