During Face & Body Southeast 2020, Lyn Ross L.M.E, founder of Institut' DerMed Clinical Skin Care, shared tips and tricks for creating a successful referral system for attendees' spa and skin care business.
According to Dun & Bradstreet, the number one small business marketing strategy is to generate word of mouth referral.
Ross stated that a spa business owner and their team must believe that referrals work and stick to a program. When consistently utilized, referrals can help offset the lost 20% (3% of clients will move away; 5% of clients will develop other relationships; 5% dissatisfied clients; and 7% are not a business' target market).
When to Ask for a Referral
- After a client has seen a satisfactory result from your services;
- When you have their confidence, you have the right to ask a satisfied client for two or three referrals; and
- Ask for a limited number of referrals so you can track them and let your clients know when their referral comes into the spa so you can reward them.
7 Ways to Get More Referrals
- Write and email asking for their help and give them a reward.
- When a client refers three friends, they can receive a free service.
- Create a new client welcome packet with cross-marketing coupons.
- Collect testimonials from happy clients to post all over business and social media marketing materials.
- Keep in touch on a regular basis.
- Reactivate inactive clients on your list with an offer.
- Law of reciprocity: give referrals to get referrals.