100 thank you cards. $5,200 extra revenue
Came across this story on Reddit yesterday and thought some IHer's out there might enjoy it :)
Max wanted to improve the number of client referrals for his removal business. So he designed and printed 100 thank you cards, wrote 100 handwritten letters and bought 100 lottery tickets. Which he then bundled into a nice package and posted to his previous 100 clients.
What happened? Well, over the next 9 weeks sales coming from referrals shot up by 140%, making him an extra $5,200 every month!
Why does it work? Well, to quote Max:
When everyone else is plowing money into Adwords, I think there is an opportunity out there to be a human, build trust, and stand out from the crowd.
It's fresh, it's different, it gets people talking. And for any regional business that's key. If you enjoyed it, I wrote about this approach in my more detail here
Great stuff, Harry!
I'd love to point something out here as well...
Doing this kind of thing isn't an alternative to Adwords. It's a compliment.
If your customers refer you more business, that means the value of a new customer acquired via Adwords is higher.
So you can afford to spend/bid more on Adwords and still make money.
Giving you an advantage over competitors.
Yep, good point Louis.
Will add that point tomorrow and reference you.
Yes Adwords and Thank You cards can live in different parts of a customer lifecycle. I'm not sure if anyone's ever tried to get referrals through adwords by targeting only existing customers. It's also a retention tactic, not just growth tactic.
Great idea!
I've long considered handwritten thank you notes, but not lottery tickets.
Going to try this out for a SaaS business with a newly-launched referral program.
Awesome - Good stuff James :)