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#mpb2b @cchariton
Teach Me How: Unleash Your Customers –
Creating an Effective Referral Program
Chris Chariton
Sr. Director, Marketing & Business Development
GTM Payroll Services
@cchariton
Background
• GTM Payroll Services Inc.
– SMB
– B2B
• Business Payroll & HCM
– INC 5000 List 8 Years
– Ecstatic Clients is a Core Value
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Agenda
• Why Referrals
• 12 Steps to Unleash Your Customers
• Best Practices for Rewards
• Secrets to Maximizing Customer Referrals
• Automation Makes it Easy
• Lessons Learned
• Success Tips
• Q & A
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Whose Job is it to Get Referrals?
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Whose Job is it to Get Referrals?
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Why Referrals?
• Contribute to the Sales Pipeline
• Faster Sales Cycle
• Greater Lifetime Value
• Higher Conversion Rate
• GTM Client Referrals Convert 20% Higher
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Why Customers Make Good
Referrals
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Who Can Use Referral Marketing?
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12 Steps to Unleash Your Customers
1. Establish Goals
2. Get Buy-In
3. Document Plan
4. Determine Rewards
5. Outline Process
6. Construct Client
Referral Lead Type
7. Create Content
8. Train Internally
9. Test
10. Promote
11. Measure & Track
12. Analyze & Revise
1. Establish Goals
• Do Your Homework
– Leads
– Conversion Rate
– Avg. Sale
• Model some scenarios
– What is reasonable
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Number of Customers 1000
% that will give a referral 5%
Number of Client Referrals 50
Avg. Close Rate 25%
New Sales 12.5
Avg. Sale First Year $3,000
Client Referrals Contribution $37,500
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Scenario Where You Track Referrals
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Structured referral program could increase contribution by $15K
Current Projected
Number of Customers 1000 1000
% that will give a referral 5% 7%
Number of Client Referrals 50 70
Avg. Close Rate 25% 25%
New Sales 12.5 17.5
Avg. Sale First Year $3,000 $3,000
Client Referrals Contribution $37,500 $52,500
Additional Sales $15,000
2. Get Buy-In
• Identify Stakeholders
• What’s in it for Them – ROI
– Share the Goals
• Resources Required
• Keep it Simple
• Roadblocks?
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3. Document Plan • Write it Down!
• Goals
• Audience/Market
• Promotional Strategy
• Process
• Timeline
• Resources Required and Costs
• ROI
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ROI
• Based on our Scenario of:
– 50 Client Referral Leads
– Conversion Rate of 25%
– Avg. Sale of $3,000
– 12.5 Additional Units
– $37,500 New Sales
• Costs
– $875
• $5 reward for 50 leads
• $50 reward for 12.5 New
Units
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4. Determine Rewards
• Will you offer a reward?
• What will you offer?
• What is your budget?
• What would your market
respond to?
Best Practices for a Reward
Structure
• Double-Sided
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Best Practices for a Reward
Structure
• Tangible
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Best Practices for a Reward
Structure
• Immediate
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Best Practices for a Reward
Structure
• Simple & Easy
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Setting Your Reward Amount
• What is a New Customer Worth?
– Average Sale
– Lifetime Value of Avg. Customer
– Cost of your Leads
– Conversion Rate
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5. Outline the Process • Flow Chart the Journey
• Initial:
– Referral Lead Capture
– Lead Assignment
• Nurture
– What responses will go out to referral and referrer
• Conversion
– How will you track if referral becomes a client?
– How will rewards get fulfilled?
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Automating Gift Rewards
• Use Gifting Platform Eg. Rybbon.net
• Instant, automated hands-free gift delivery via email
• Integrated with Marketo & Hubspot
• Cost effective for SMB
• Branded gift redemption page
• Saves marketing team time
• Happy Clients
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The GTM Referral Process
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Sales Process
Web
Small Incentive $5 Starbucks ecard
Phone
Qualified Lead
Initial Thank You Reward
Final Thank You
Reward
$50 ecard
Closed Won Lead Capture
6. Construct Referral Lead Type
• Establish Lead Type for Referrals
– Identifies these leads so you can customize follow-
up & nurture streams
– Allows you to track results
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7. Create Content
• Content to Promote the Program
– Internally
– Externally
• Form Capture, Landing Pages
• Emails
– To the Referrer
– To the Referral
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Referral Form – Keep it Simple
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Referrer Email Content
• Thanks Them
• Outlines What
Happens Next
• Provides Immediate
Reward
• References Future
Reward
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Thank you for your referral!
We love it when our clients and advocates trust our services and recommend their
friends and colleagues.
Here's what happens next:
Your friend will receive an email from us explaining what we do and how they’ll benefit.
If your friend signs up for our services:
They will receive great service and support – the highest levels in the industry –
that all of our clients are accustomed to with GTM Payroll Services.
You'll receive a $50 Visa e-gift card.
In the meantime, here is your $5 Starbucks e-gift card just for passing along your
friend's name.
Available until Dec-04, 2017
We value your business and appreciate the opportunity to support your friends and
colleagues who could benefit from our business payroll services.
Referral Email Content
• Calls out the Friend
• Reference Friend in
subject line
• Mention any
perks/discounts
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8. Train Internally
• Meet with Teams
– Sales
– Customer Care
– Product Management
– Onboarding
• Record and Document Training For Future
New Employees
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9. Test
• Does the Process Work?
– Use dummy accounts
– View on mobile and multiple platforms
– Test mechanism for reward
• Validate Success
– Start with Loyal Customers
– Then Roll out to More
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10. Promote • On your website
• In your blog
• Automated reminder email to new and existing clients
• In your client portals
• Phone & chat conversations
• Onboarding for new customers
• Client satisfaction surveys
• Product guidelines
• In email signature lines of employees
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Promote in Your Email Signature
Line
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Biggest Secret to Getting Referrals
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Ask!
Best Practices For Asking
• Share Your Ideal Prospect Profile
• Personalize the Ask
• Transparency
• Pick the Right Timing
• Close the Loop
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11. Measure & Track
• Set-up Reports
• Monitor Results
– No. of Client Referrals
– MQLs, SQLs
– Conversion Rate
– Avg. Days in Pipeline
– $ Won
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Client Referrals
Opps
$
SQLs
12. Analyze & Revise
• Compare Metrics to Plan
• What’s Working
• What’s Not
• Tweak as Needed
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What We Learned • Continue Reinforcement to Sales & Customer
Service to Ask
• Combo of email & personal asks
• Change up reward periodically
• Use Recaptcha on Public Forms
• People Like Gifts!
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Lessons Learned
What Next? • Improving the Customer Experience
• Training for Customer Facing Team Members
• Advocate Marketing
– Customer engagement through community
– Referrals, reviews, testimonials
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Success Tips Set Strategy & Goals
Start with Best Customers
Involve Sales & Client Care
Train Internal Teams
Use Double-Sided Incentives &Tangible Rewards
Keep it Simple & Easy
Promote Often & Everywhere
Automate and Use Nurture Streams
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Ask me anything at the Post-Presentation Huddle!
Chris Chariton
Sr. Director, Marketing & Business Development
GTM Payroll Services
@cchariton
