How to set up a sponsorship system that works?
92% of consumers favor the recommendations of their relatives, before any other marketing channel (according to a Nielsen study). That's the point of sponsorship programs: they make your customers your best ambassadors for low-cost prospecting!
An ideal marketing action for local businesses
It is well known, family and friends are the most reliable source for advice on a product or service. That's why sponsorship programs are so effective, rewarding the customer who converts another. Sponsorship can also generate word of mouth about your business.
Sponsorship programs are often used in subscription-based services, but they can be implemented in a sector where customer loyalty is important (in other words, where volatility is low). This is the case for gyms, beauty salons, spas or leisure activities ... The sponsorship is ideal for small businesses because it allows you to actively prospect new customers without spending a lot of money.
Offer something special in exchange for sponsorship
There are many ways to reward clients who sponsor their friends or family members. Make sure that the reward is a real benefit to the sponsor, in a win-win logic: it can be a coupon on a future service, a voucher valid throughout the store or on a category of products, free products, or even a free service.
To make the sponsorship even more attractive, you can also reward the godson but, in general, we will ensure that the remuneration of the sponsor is more important: after all, it is he who does the work of prospecting for you.
Plan your sponsorship program well
During the pre-sponsorship phase, you need to start by defining quantifiable goals, as with any marketing activity. Calibrate the rewards and the duration of the offer, and enter this legal information in the rules of the sponsorship program, to make available to customers on request.
Once the sponsorship program is completed, analyze the results carefully to find out if the objectives have been achieved, and to identify possible malfunctions.
Beware of the success of the offer
To succeed in your sponsorship program, you must consider all the possibilities, including the one where a very large number of referrals is reached. Have not you been too generous about retribution? Do you have enough stock or staff to ensure the rewards and influx of customers? Will a lot of discount coupons or free benefits not affect your turnover?
You can remedy this by limiting the offer to a godchild by godfather, and frame its effect over time. Thus, the sponsorship program can be limited to a few days or weeks, around the launch of a service or a special event (Mother's Day, Christmas, etc.).