Over the last year, DEFENDER Direct has focused intently on establishing its Customer Referral Program. The company, which markets, sells, and installs security systems, recently revamped its program to provide a better experience for its customers and employees. Customers get referral cards with unique identifying numbers that allow them to receive $200 if they refer a friend or family member that results in a new security system installation. DEFENDER’s security advisors also receive up to $200 per referral, which provides an incentive for them to embrace the program and provide an outstanding experience for their customers.
DEFENDER renewed its focus on the Customer Referral Program because analysis shows leads generated by customer referrals have proven to be 20 percent more likely to result in a sale and referred customers will invest 22 percent more in their security systems, so even a small increase in the percentage of leads through referrals will have a significant impact on bottom-line performance.
Video and Job Aids
Because the customer referral system itself had changed, DEFENDER’s primary training objective was to ensure that all security advisors understood how the system worked so they could accurately describe the process to every customer. Training on the mechanism of the new system was accomplished through video and job aids.
In addition to understanding how the program works, security advisors also need to be enthusiastic about it. Even if they follow the process, the program will not succeed if security advisors are not committed to providing excellent service and a compelling invitation to the customer to participate. To this end, DEFENDER introduced the new referral program with significant financial incentives. It also created a fun infographic poster that was sent to every branch location. The poster emphasized the benefits of creating referral leads and provided a place for security advisors to record their progress and their favorite techniques for presenting the new program to customers. A series of short-term contests also supported the referral program. Video updates featuring successful security advisors were sent bi-weekly throughout the third quarter to maintain visibility for the program.
DEFENDER also launched a new video series that focuses on the customer experience. Each of the five videos is filmed from a first-person view, alternating between the perspective of the security advisor and that of the customer. By showing the team how a customer perceives their interaction with them during a typical installation appointment, DEFENDER aims to reinforce the importance of providing an exceptional customer experience that will create a mob of customers who are eager to tell others about the company.
Results
Early results have been encouraging. The percentage of leads generated from referrals jumped from 1.5 percent to 2.6 percent in the first month of the program. That 1 percent jump equates to approximately 300 additional installs per month, which moved DEFENDER almost halfway to its year-end goal of 800 new installs per month from the Customer Referral Program.
