Refer a Friend: The Passive Sales Tool that Runs Itself

Unlike most sales and marketing tactics, Refer a Friend schemes require little effort on the part of the homebuilder.? Aside from some marketing of the scheme itself, these promotions instead allow consumers to carry out the task of securing your next sale or tenancy, while also benefitting from a positive outcome.

In this newsletter, we will look at the three main benefits for using Refer a Friend schemes for homebuilders, as well as how you can easily apply this sales tool to your operations.

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1.????? Significant Cost Savings

Referral schemes encourage current, happy customers to share your brand with others in exchange for rewards.? This might be a financial reward, a voucher, or a discount on a future purchase.? Despite the financial outlay associated with gifting the reward, ‘The cost of a?referral?reward is fixed per referral, with the motivation being paid for by performance. ?This results in a much lower customer acquisition cost (CAC) compared to other types of advertising and marketing that a business can utilise,’ reveals Bionic.

So, as well as the already satisfied customers carrying out some expensive work for you, you are also guaranteed to make a saving – a tempting prospect indeed.

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2.????? Higher Quality Customers

Did you know that referred customers are more likely to make repeat purchases, spend more, and refer others to your business?? According to digital payment platform, Tremendous, ‘Referred customers are?200%?more likely to spend than non-referred customers.’ ?This is a significant figure and not one to be ignored.

And this is not the only area where they bring value.? Tremendous go on to reveal that referred customers, ‘Referred customers are cheaper to acquire, more valuable in the long-term, and more likely to spend. ?And they also build trust on both sides.’

Another quality referred customers share as opposed to their non-referred counterparts is that they are generally ‘warm leads.’? Friends and family will not recommend a new home to someone with no interest in buying one, as Propello, a customer loyalty software company, argues, ‘Usually, they’ll recommend your brand to people they think will have genuine interest in it.’? Therefore, the customers sent your way through Refer a Friend schemes are undoubtedly in the market for a new property and therefore more likely to buy one from you based on the recommendation of someone they know and trust.

This is the type of customers businesses want, so it is worth considering a promotion in order to try to obtain them.

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3.????? Increased Brand Awareness

Referral marketing has a hidden benefit of helping potential customers understand your brand story.? Not only does this enhance your reputation, but it also makes your business more favourable among new and existing customers.?

Propello advises that, ‘By encouraging word-of-mouth marketing, you have an opportunity to reach leads who may not have been reached through traditional marketing channels.’?

So, when using schemes like these, your brand reaches an audience that otherwise might not hear of you or your homes.

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How You Can Benefit from Our Referral Scheme

At Classic Folios and Spaciable, we are well versed in the workings of Refer a Friend schemes, and run this promotion for our own customers, which you can find out more about here.

If you’re a client of ours and know of anyone in the homebuilding industry who could benefit from either our hardware or digital products, then we will send you ￡250 in John Lewis vouchers for each qualified referral that results in an order.

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How We Can Help You Set Up a Refer a Friend Scheme of Your Own

We are also able to help you set up a Refer a Friend scheme of your own, should you wish to benefit from the success of these promotions.? Please get in touch to find out how we can add this tool to your Spaciable portal, or help guide you through implementing this tactic and supplying information in your handovers so that your customers know what they need to do to secure their reward.

Please get in touch to find out more, here.

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