5 Tips to Build a Strong Referral Program for Dealers
Before
buying a car, prospective customers look for online reviews or consult their
friends and family for recommendations . Referrals play an important role in
this process, since people do recommend the dealers they like to other buyers.
Here
are 5 tips to build an effective referral program.
1.
Know Your Customer Demography
Before
you target customers for referrals, it is important to learn if they will be
interested or not. You also need to understand if they value your services and
what may nudge them to recommending the dealership.
Once
you have the answers, you will be able to plan a strong referral program.
2. Build a Plan to Contact Them
Once
you have a list of customers who may refer your dealership, then the next thing
to plan is when and how to approach them. It is important to connect with them
at the right time, since not every referral is the same.
3.
Think About Your Referral Incentives
Once
you are done with the list and analyzing your customer profiles, the next thing is
to plan referral incentives. Depending on your dealership, you may offer
coupons, discounts, gifts, or free service.
The
incentives should be given to both referrals and referrers.
4.
Promote Your Referral Program
If hardly anyone knows about your referral program, then obviously you will not be
getting much referrals, customers, or customer reviews. Promote your referral
program across online and social channels for good results.
Spread
the word through your auto dealer website, emails, newsletters, website pop-ups, etc.
5.
Monitor Your Results
You
should always monitor and track your referral programs.
The things to monitor:
- Who referred whom
- Time of referral
- Conversion rate
- How to nurture referrals
- Incentives given to them, and so on.
Bonus:
Thank Your Customers for the Referrals
Once you have a successful sale, show your gratitude and send a ‘Thank You’ note along with the promised incentive.
For more tips on building a strong car dealer referral program, Contact Us.