Member referrals are one of the most important source of new members for health clubs. On average 65% of new members come from referrals. Having a member referral campaign is a great way to get new leads. These often involve giving a prize to the member who makes the most referrals throughout a set duration. However, here are many common mistakes that club operators make when launching referral campaigns.
Here are the five biggest mistakes that could cause your campaign to fail:
1. Not Properly Educating Staff
Your staff must understand the details of the referral campaign, including the prize, theme and duration. They also need to be ready to answer any questions about how to actually make referrals. If you are collecting referrals through your Club Mobile App, staff should be prepared to direct members to use the app and easily make the referral, as opposed to writing anything down on paper.
2. Not Being Organized
A well-executed referral campaign requires a lot of organization. In particular, you should have:
- Written outline of all the parts (prize, time, etc.)
- Marketing schedule for when you should create signage, send push alerts, emails, etc.
- Regularly scheduled team meetings to review referral results and make adjustments
3. Being Too Pushy Or Invasive
Members don’t want to feel pressured. If a sales rep calls members to continuously ask for referrals, it could make them uncomfortable. They want to make referrals on their schedule and at their convenience. The key to making the referral process natural and smooth is to use technology. If members can fill out a form in the Club Mobile App or online to make the referral, they will be far more inclined to actually do it.
4. Having Referrals Tracked In Different Places
There must be one simple place where all referrals are tracked (again, typically your CRM). Failure to keep this part organized is always a recipe for disaster: referrals get lost in the shuffle and you need to manually calculate how many each member makes. Keep the process simple and easy by managing all of your referrals in your CRM.
5. Not Putting In The Effort To Ask
This one is simple, but one of the most common downfalls of referral campaigns in health clubs is a lack of effort. From the owner to GM, marketing manager to front desk staff, everyone needs to be invested in making the referral campaign a success. These employees all need to be committed to asking and reminding members to participate.
Want to increase your referrals? Check out The Ultimate Guide To Member Referrals: