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Business Tips

The secret to making EASY sales

 
customer-referral-program
 
 

Becky Bouterey

Contributor

Published 17 Aug 2023

Implementing a Customer Referral Program

Dealership referral programs are a fantastic way to grow your customer base and increase your overall profit.

 

How do they work?

When a customer refers a friend or family member who purchases from your dealership, you reward the referring customer with a valuable incentive such as a sum of cash or a voucher.

This is a simple yet effective strategy to generating more business on an on-going basis. 

 

Did you know?

*According to a recent study.

There have been many studies take place that have found consumers are more likely to purchase from a business that has been referred to them by a friend or family member.

 

Scenario

Imagine this scenario: You sell roughly 160 cars a year.  

From this 160, 30% of customers refer a friend to your dealership, meaning an additional 48 potential customers come through your doors a year. Let’s say 50% of this number end up test driving a vehicle and from there 50% purchase. That adds an additional 12 sales to your annual sales figure.

Now take into consideration the number of previous customers who have purchased from your dealership (prior to this year) who are also opportunities for referral business.

THEN, consider this number compounding every single year. Imagine the difference this number have on your monthly and annual sale figures?

 

How do I set up a referral program?

  1. Decide on an incentive. For example, $200 cash or a $200 Prezzy Card.
  2. Create advertising material such as a leaflet to hand each customer when they purchase, a section on your website and an email out.
  3. Verbally make every customer that purchases a vehicle from you aware of this incentive. 
  4. Share it across your socials on a regular basis. 

Setting up a referral program is really a no brainer and every dealership should implement one. It turns your customers into ambassadors and is one of the cheapest and most effective forms of marketing you can do.  

 

Questions

I hope this gets you thinking about setting up a referral program and the options you have available to you. If you have any questions, please feel free to contact our team or leave a comment below. 

 
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Next post Drive vehicle sales this summer with our 'Summer Wheels' campaign
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