Referral Programs: A Surefire Way to Increase Your Customer Base


A referral program is designed to motivate employees or members of an organization to refer new employees or customers to a business with the intent of bringing the potential customer on board. Employees who refer others may get a variety of incentives, including upgrades in membership, free social entertainment voucher or monetary bonuses along with company recognition.

The goal of a referral program is to increase customer base. The competition for customers is fierce in any successful industry. Businesses or employers must go beyond online advertising and other media channels to reach more people.

The most effective thing about a referral program is that it benefits not only the employer if another person joins the team; the program also helps the employee who referred the person. For instance, a monetary reward is the most obvious incentive. However, the reputation of the employee increases in the organization as well.

Grounds for Promotion

An employee who refers others indicates how much he or she is involved in the progressiveness of the company or organization. Employers see this as a giant positive.  As a result of the company’s favor, the employee paves the road for a possible promotion in the future.

referral programs

Another positive regarding an effective referral program is that the employer gets an individual who already knows someone in the company. A referred person is not a total stranger to an organization because someone within the organization knows this person.

The Gift of Familiarity and the New Employee

Also, the referred person doesn’t feel totally isolated from everyone in the company because he knows that person who referred him or her to the business. Studies show that people feel more comfortable joining an organization in which they know someone who works there.

In such a perception, we find the power of referral programs. Increasing our customer base by empowering our employees with the optional responsibility of bringing others on board is the key to excelling beyond the efforts of the competition.

The Referred Individual: the Perks for Joining

Now that we know how a referral program helps the employee and the employer, the remaining question is what’s in it for the person who joins our business or organization. Employees need to be trained on how to approach potential customers and how to persuade them to join the company.

First, we must acknowledge that our potential customers have specific needs and want that must be satisfied before they will make decisions.  These needs range from:

  • Job security
  • A salary relevant to their knowledge and skills,
  • An exciting working environment

As an employer, the content of a referral program should include a variety of incentives for joining your organization or program.  The more rewards you offer an individual, the chances of the person getting on board increases.

When to Push Your Referral Program

The best time for pushing a referral program is all the time. But one of the most profitable times is after the New Year when people are looking to start new adventures. During this time people are ready to make millions of new resolutions.

Many individuals are looking to embark of upon new careers. Others are looking for information relevant to their needs and want. Your company may have an answer for such people. Find out who your target audience is and train you, employees or members, to go all out. Increase the monetary reward your referral program if necessary.

Change of seasons is another time to try to get other people on board. Winter, spring, summer, and fall makes people think about change. Maybe they have experienced a wild winter at their old job but now that springtime has arrived, they have a willingness to try something new.

Consider the Holiday seasons as well. Most of the time people are preparing for these days instead of looking for a job. However, if your product or service is relevant to improving the quality of their holiday celebrations, don’t hesitate to inform employees to go out of their way to push the program.

Skillful Use of a Referral Program

Referral programs are nothing new. Successful Businesses or organizations skillfully use referral programs to increase their customer base and to get their current employees more invested in the company.

Individuals who often refer their company to others, getting them to come on board, have a sense of ownership.  Regardless of their title, they believe what they do can drastically impact the business for life.

Increasing your customer base via referral programs is a powerful way to obtain more loyal and committed workers.  The strategy works for all types of business, not just for brick-n-mortar locations, but also for online businesses as well.

Whether your business is small or large, creating an effective customer base is a necessity for achieving an advantage over the competition.




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