If the ‘birds of a feather’ theory is true, then using your valued customers to help you find new customers is a great idea. A happy customer is the most convincing salesperson you’ll ever find. And, if you take the time to reward your customers properly for their support, everyone will come out a winner.
Psst… Pass It On… and Get a New Customer for Less!
How many of us can resist sharing a good deal with friends? That’s the premise behind pass-along offers and discounts. Quite simply, you offer current owners of your product a pass-along discount that the owner can use or pass along to friends, neighbors, relatives or good social marketing contacts. If the discount is greater than anything offered to the general public, your customer will be doing friends a favor by passing on the discount. And, you’ll have a delighted new customer at significantly less acquisition cost than you would normally incur.
There are other advantages to this strategy as well. Friends of the customer are able to see your product in use or hear firsthand from someone they trust about, say, the great job the new mower does on their lawn. As long as you’ve taken the time to build a good relationship with your customer, the only added incentive (read: marketing cost) it takes is a special pass-along discount cost.
This is not the time to cut back on costs. Make the offer a worthwhile proposition for both the existing and new customer. When you consider that your customer is doing all the advertising and selling work for you, and that your promotional costs are slashed as a result, you can afford a significant discount.
Where Do I Do This?
Choose just about any channel or vehicle for your pass-along offer. Your web site, a letter or postcard, newsletter, blog, Facebook or Twitter … all are good choices. Just be sure to explain the concept of your program in clear and honest copy and repeat this concept often! Results seem to improve when you give some believable reason for any discounts, premiums or incentive.
To add further believability to your pass-alongs, provide a space for the owner to endorse the discount on behalf of a friend. And don’t forget to let your customer know that the discount may be kept for personal use. Just be sure to time your pass-along offers correctly, e.g. you don’t want to send a customer an offer for a discount on a product that he or she just purchased!
Tell ‘Em Joe Sent Ya — or Getting More (Qualified Leads)
It’s crucial to maintain good relations with your current customers, but list-building is still a vital part of any marketing plan. One of the most effective ways to gain qualified leads is through member-get-a-member and friend-get-friend referral offers.
In a future post we will discuss more about how this is best done — for low cost and without alienating your customers. If you’d like some immediate coaching, get in touch for a quick consult.
