How to make bookings multiply with customer referral schemes

David Forder, head of marketing at Advantage Travel Partnership, says: “A referral scheme is a great way to generate new revenue, create awareness for your business and reward your existing customers – you couldn’t ask for a better endorsement than one from an advocate of your business.”

He adds that a simple referral scheme can be inexpensive to set up, with costs incurred only when it generates incremental revenue for your business.

“For example, print business cards with your referral message on to include with booking confirmations, when handing out brochures or with quote details, and add it into your emails,” he advises.

Forder suggests having a scheme that rewards both the referrer and the new client. Each quote and booking can include a £10 off discount or voucher, with £10 off per person for new bookers, and a £10 voucher for those who refer potential customers that end up booking.

“You may wish to change the reward values based on your average margins, set a minimum spend or take the redemption off the total booking value rather than per person,” he adds.

Bridget Keevil, founder of Travel Stop in Suffolk, has a customer referral scheme in place called the Travellers Reward Incentive Programme (TRIP), whereby clients earn points when a recommended new customer books with the agency.

For example, if a client’s friend books a family summer holiday for the first time, the referrer earns 300 points, while a luxury cruise to the Caribbean will earn the referrer about 1,800 points.

The points can be redeemed for prizes, which range from a bottle of wine to a spa day at a local boutique or health club.

“Referrals are an excellent way of marketing without us having to spend a penny,” says Keevil. “We only have to pay when we have a new booking.”

Keevil launched the scheme about four years ago and says it has been hugely successful across her three stores.

“We’ve had over one million pounds of new business – only customers that haven’t already booked with us are eligible for a recommendation,” she says. The scheme is also promoted on the agency’s website.

When a client makes a booking and expresses an interest in referring someone, they are given a business card with their name on it.

“They give that to their friends or family, who in turn give it back to us, and the original customer is then credited with points equivalent to the commission on the new booking,” explains Keevil.

“We include three cards with ticket packs (and give out extras for repeat referrers), as well as explaining what the scheme involves so that they aren’t just thrown away,” she adds.

Gifts for referrers also include an afternoon tea in a local hotel, Michelin-star restaurant vouchers, taxis to the airport, airport lounge access and parking.

While it’s only the referrer that receives the gift, the newly referred client also has the chance to become a referrer and earn the points themselves, she explains.

“Serial referrers” can cash in their points on one booking, or save them up for an even bigger reward, she adds. When it comes to using referral tools, Keevil keeps it simple. “I use a husband and a spread sheet – both are relatively cheap,” she laughs.