Today, the power of word-of-mouth marketing is astonishing. Take these statistics, for example:
- 92% of consumers trust referrals from people they know – Nielsen
- People are four times more likely to buy when referred by a friend – Nielsen
- One offline word of mouth impression drives sales at least five times more than one paid impression – WOMMA
- Word-of-mouth has been shown to improve marketing effectiveness by up to 54% – MarketShare
How do you harness this powerful form of advertising and develop your own referral program? While you can simply ask your students to spread the word about your yoga studio, implementing a true referral program will encourage and incentivize people to go out of their way to help you grow your student base. Here are three simple tips to help you get started on building your own referral program:
People tend to care more about a task if there’s an outcome that positively affects them. Incentives allow your students to have skin in the game. Money is typically the first thing people think of when brainstorming incentives, however, creative incentives such as merchandise giveaways, free classes and gift cards can be equally as effective.
Once you’ve decided on the appropriate incentive to motivate your students to spread the word about your studio, arm them with collateral to hand out. Consider making branded referral cards that display your studio’s information as well as an area for the referring student to write their name so that they can cash in on the reward should that referral follow through.
Finally, promote your program. Make sure your students know how the program works, and what they’ll receive when they refer new students. Have your instructors make announcements at the end of class, leverage your social media platforms, post flyers up in your studio and include details in your email blasts. A referral program is only effective if people know about it.
For more tips on how to create a comprehensive and successful referral program, download your free copy of ZenPlanner’s 7-Step Guide to Creating a Successful Referral Program.