We’re back with the next installment in our ongoing Boulevard’s Best series. This one’s all about client referrals. We’ll admit it: we’re not exactly breaking news by saying client referrals are a good thing. If you’re in the business of running a salon, spa, medspa, barbershop, or any other self-care business, you certainly appreciate a good referral every now and then. For most business owners, though, that’s probably where the story of referrals begins and ends. 

But we’ve seen the data, and it shows that you shouldn’t just appreciate a good referral; you should be all-in on trying to get as many referral clients through the door as possible. This has long been Boulevard’s belief, which is why, late last year, we launched a series of new Client Referral capabilities to make it easier for our customers to incentivize and reward their existing clients for referring new ones. 

For this analysis, we compared new clients referred to a business through those capabilities to new clients acquired through other means; so, basically, referrals vs. non-referrals. The data couldn’t be clearer: a referral client is better for your business than a non-referral client. How much better? Well, as always with Boulevard’s Best, we’ll let the data do the talking. 

Compared to non-referral clients, referral clients: 

• Spend 68% more money per visit

• Return for a second appointment 28% faster

• Book 45% more total appointments per year

• Have a 4% higher 30-day retention rate
  

To summarize, referral clients don't just show up; they show up big. They spend more, come back faster and more often, and stick around longer. If that’s not enough to convince you (it should be!), there’s more. Our analysis also revealed that referring clients are significantly more valuable to your business than non-referring clients. Turns out referring clients spend 53% more per visit than non-referring clients. That, folks, is what we call a win-win. 

So, what can you do to join the ranks of best-performing businesses when it comes to referrals? First, take ownership and commit to making client referrals part of your business DNA. You have to be the driving force. Create a program that makes it as easy as possible for your existing clients to refer new ones—and make sure you’re rewarding them when they do, either through discounts on their next appointments or other perks. While you’re at it, toss in some initial perks for the referral clients as well that make getting in for that first appointment as appealing as possible. 

Technology can play a big role here. With Boulevard’s client referral functionality, for example, you can leverage email and/or text campaigns to promote your referral program to existing clients, and tracking is automated every step of the way. Existing clients get a unique booking link that they can share with friends (usually offering them a special discount on their first appointment) and are rewarded (usually with an account credit or voucher) when one of their referrals completes their initial appointment. Without any effort from your team, the referral is captured, and the reward is sent. However you choose to set your program up, make it as easy as possible for everyone involved. 

If your business performs medical services, there may be regulations that discourage referral programs. We recommend consulting with your legal and professional advisors to carefully consider whether your business’s use will comply with all applicable federal and state laws. 

Ready to create a best-in-class referral program? Demo Boulevard today to see how we can help.