Build a Referral Program for your Dance Studio

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Having a referral program can be a great way to bring in new students.[/caption]

Referrals can be a powerful form of advertising.

Referrals can be a great way to encourage repeat customers, and drum up new business. According to the New York Times –65 percent of all new business comes from referrals.

Referrals can also encourage new customers to stick around longer. In fact, according to one study by The Wharton School of Business –a referred customer is 18 percent more likely to stay with a company than other customers.

Being able to tap into this valuable opportunity starts by developing a plan –a referral program that will encourage your students to share the word. While you can’t always control when someone refers your studio, you can take steps to motivate and encourage your customers to refer you.

Here’s how you can get started building a referral program that will draw in new students.

Chose Incentives That Benefit Both the Referrer and Referee

Offering incentives that benefit both the referrer and the referee is a great way to see results from your referral program. For example, instead of just offering a reward to the referrer, consider offering the new customer an incentive as well: 20 percent off their dance lessons, for example –or a gift card or even cash. Experiment with different incentives, and find out which ones have the highest success rate. Be sure to offer something of value for a better response rate.

Start Collecting Emails

Gathering your customers’ email addresses is important for spreading the word about your new referral program. Ask your students for their email address when they register at your studio, or consider asking your already-existing customers for their email addresses, informing them that you’d like to let them know when your referral program comes out.

Spread the Word

Next, it’s time to spread the word about your new program. Use email software, like MailChimp, to create your email template, and send the news to your customers. MailChimp is free, and it also sends emails with opt-out buttons –something that you’re required to include on your marketing messages.

Get the Timing Right

Avoid being too pushy. Don’t repeatedly inform your students about your referral program. If you’ve already informed them once –consider waiting a few months to a year before asking then again. Constantly pestering your clients to refer you to their friends and family will make you come off as desperate, and could even drive your current customers away.

Track the Results

Be sure to track the success of your program. If it’s not working, try to identify the cause of its ineffectiveness, and make changes to make it more successful. Are the rewards not valuable enough? Do they only benefit the referrer, not the referee? Be sure to set up a system that tracks how many of your students came through a referral; and make it a habit to ask each new student how they heard about you. Keep a list of the number of new referrals that you get each month. This will help you to track the success of your program. Consider using HubSpot, to help you manage and track the results of your referral program.

Follow Through On Your Promises

Make sure you follow through on your rewards. If you ask each student how they heard about you, and who referred them –you’ll know who to reward. Consider rewarding the referees as soon as they come in, and be sure to send your referrers out rewards in a timely manner. Don’t forget to thank your clients for their referrals!

While it takes time and effort to run a successful referral program, many companies find that the results are more than worth the effort. Having a great referral program will encourage others to spread the word, and will help you to keep your studio booked!

Have you used a referral program at your studio?

Image: Felix Padrosa Photography

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