A bank referral program provides a way for customers to refer their family, friends, and co-workers to the bank through specific channels. Some estimates show that about 30% of banks and credit unions in North America are already using some kind of referral program. In some cases, these are automated systems with all the bells and whistles. In other cases, they might be a simple paper form that someone hands over to a buddy.
While these systems, and those in between, all work – the design of the program does matter when it comes to return on investment. A huge banking network across the United States might make better use of an automated system, while a credit union with two branches might need something much simpler.
Common Mistakes with Referral Programs
There are a number of things to consider when instituting a program. We’ve determined what the most common mistakes are and would like to pass them on to you. This will help you ensure you start off on the right foot with whatever system you choose.
What to Do
While there are many examples of what not to do, you must also know what you should do. That’s just as important. One thing you should do is to make sure the system is easy to use. You should also ensure the reward is worthwhile, as that will bring in more customers. In addition, do what you can to promote the program and automate its use. This will all give you a better chance at hooking new customers who will use your services for years to come.
If you are looking for a referral system that is simple to set up and offers great features, one option is FinancialRefer. You can find a free demo and learn more here.