72% of marketers still do not recognize and leverage the value of....

Kristen Tepper

customer referrals!

Even though -  Referrals are 4x more valuable than a web lead.  (InsideSales.com) and Word of Mouth has been shown to improve marketing effectiveness by up to 54%.

How are you marketing for referrals in 2019 to outbeat your competition and sell more vehicles?

Derrick Woolfson

This is a struggle, oddly, for a lot of dealers. It seems that the standard "referral" spiff is not cutting anymore. Dealers could easily offer the customer a service visit, which would then also help with the OEM retention.  

Kristen Tepper

I think it's super important to figure out what motivates your customers to take action! Do you think a customer would prefer a service visit up to XX amount over a monetary value? Which would you prefer?! 

Chris K Leslie

What if we create punch cards and every 15 deals someone sends us we give them a free used car worth a certain value? 

Mark Dubis

How many restaurants have you visited where they offer to give you a spiff if you send in your friends for dinner?  Have you gotten a spiff when you told a friend to buy their phone at AT&T or Verizon?  Is Nordstroms or Macy's giving you a $100 gift card when you send them a couple to register for their wedding?   Of course not, these companies don't pay spiffs. They work to provide a wonderful customer experience, a good value for the dollar, and expect that there will be word-of-mouth recommendations where customers will send friends and family to their place of business.  It works the same way in an auto dealership. If the buying experience was above average, the buyers will make sure all their friends hear about it.  And of course, if the experience sucked or was frustrating or drawn out, they will share that too.  There are numerous ways to "thank" your customers for sending in referrals, but offering them cash isn't always the best way.

Kristen Tepper

@Chris! That's fun! I think Tesla actually runs their referral program similar a bit more like a contest as well with entries (to surpass referral laws in some states). You refer friends and you're entered to win a tesla, more entries, more chances to win. And your idea is even more guarantee which is very exciting and enticing for someone as well as a gamified!

@Mark to your point, I think there are A TON of different ways to show your appreciation for referrals. Airbnb does travel dollars, paypal does cash, a ton of e-commerce stores do store credit. I think it's a tad naive to think an incentive won't help push your store about the competition though. Lots of stores and companies give outstanding service. For example, I have chase cards, I have discover cards, I have 53rd cards, I have other banking cards, I have other credit cards. They all are fine, they all serve their purpose but Chase offers me points for all my referrals. Can you guess which bank and cards I normally refer my friends to more often? 

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