For the past few years I’ve been sending rich, delicious brownies as referral gifts to really nice people. It’s one of my very favourite things to do.
Do I order myself a box of brownies at the same time? SURE. But the main reason I love sending brownies as referral gifts is because the nice person who referred me really deserves a treat. I get a kick out of recognising them and thanking them. After all, they’ve made a huge difference to my business.
I’m a big fan of referral gifts and I wish more people sent them. They’re a super positive way to market what you do, support other small businesses, create a consistent client pipeline, and get yourself some brownies.
This blog will answer all your referral gift questions and explain how to get one yourself. Want to skip to the bit where I tell you how to get free brownies? Yeah, fair enough.
What are referral gifts?
Referral gifts, programs, or schemes have been around forever. According to Opia, “referral programs use word-of-mouth marketing to cost-effectively acquire new customers”.
In other words, referral gifts are given by a business owner to an existing/ recent customer as a thank you for that existing/ recent customer getting a new customer to work with the business.
Big companies use them all the time. Companies like Sky, and The Co- Operative Bank, and Octopus Energy. You will have seen referral codes promoted by HelloFresh and Monzo.
Ultimately, the reason big businesses use them is because referral gifts are an incredibly effective marketing tool.
How do referral gifts work?
There are a bunch of possible variations, but here’s the simplest process.
- A Lovely Business wants more customers
- The Lovely Business tells their current customers they’ll get a specific gift if they refer a new customer to buy from the Lovely Business
- Person A is a customer of the Lovely Business
- Person A has had such a good experience with Lovely Business they tell Person B all about it
- Inspired by Person A, Person B then signs up with Lovely Business (so far, so word- of- mouth. The gift part comes next)
- The Lovely Business is notified Person B is a new customer and they’ve been referred by Person A
- The Lovely Business then sends Person A the gift they were promised.
- Everyone is happy. The end.
Sounds delightfully easy, right? It is!
There are a couple of key points which I should point out though. First of all, the Lovely Business needs to deliver the exact the gift they said they would. The trust between the business and Person A would be ruined if a ‘coffee- lovers gift basket’ was promised but a small packet of instant coffee was delivered. Or if Person A expected 50% off the service cost forever, but they actually only got 50% off for a month.
While referral gifts are inherently positive and all about growing a business while spreading some joy, any miscommunications or unmet expectations will result on the customer feeling cheated or misled.
Another important point is the Lovely Business needs to have great admin skills. How will they track which new customer was referred by which original customer? There are various ways to possibly do this, such as unique referral codes, or specific links, or simply by asking the new customer “who referred you?”.
Why small businesses should take advantage of referral gifts
Referral gifts are a chuffing brilliant marketing method. I’ve got a whole bunch of copywriting clients through word- of- mouth referrals over the years. A personal recommendation is so, so persuasive. I want more people to talk about me and what I do. And, I want to reward them for doing it. For a relatively low investment, I get to spread some love to new clients, old clients, and a lush UK small business.
Introducing a referral gift process into your small business is a gorgeous way to grow your biz, reach new audiences, and set up your client pipeline.
TL:DR: referral gifts are great.
However, there are a bunch of super valid reasons small business owners might not make use of referral gifts. It can take a bit of effort to organise and source the gift. Promoting your referral gift system takes time, and you’re already really chuffing busy.
There might also be a little reluctance to launch a referral gift process because it might seem a little corporate. There are lots of big businesses who use referral gift schemes so t could feel a bit icky to a small biz owner. My take is- if big businesses are doing something it’s usually a good idea to follow their lead. Just make sure you send a referral gift you love and it feels authentic to you and your brand.
Depending on your business, here are some ways you might make a referral gift system work for you:
- Reward Person A with a digital download when Person B joins your newsletter email list
- Reward Person A with extra drink tokens if they bring Person B to your event
- Reward Person A with 10% off their manicure when Person B has had their first manicure
- Reward Person A with 50% off their subscription when Person B signs up and uses Person A’s unique referral code
- Reward Person A with a box of fudgy brownies through their letterbox when Person B signs up for any copywriting project (cough *hint* cough)
How to choose your small business referral gift
This is the fun part! It’s like shopping… kinda!
When choosing your referral gift, start off by exploring letterbox gifts. There are so many to choose from, like Bloom & Wild, or Treatbox, or the brilliantly named Letterbox Gifts (an SEO dream!). I love them because you can be sure the referral gift will arrive safely since it can be popped through a door. You aren’t adding any inconvenience to your customer’s life by expecting them to wait in for a package or go to the Post Office to collect something.
Whether you go letterbox or… err, bigger box, here are some important things to consider as you search for your referral gift.
- Is the referral gift joyful, positive, or ‘a treat’?
A gift should be lovely. Choose something like brownies, or fancy stationery, or voucher for a coffee at a local coffee shop. - Is the referral gift practical, useful, or convenient?
If you can’t go joyful, then something like money off their next month’s subscription, or a gorgeous tote bag, or really good travel mug will do nicely. - Is the referral gift unique, luxurious, or valuable?
Cash in their wallet because they’ve saved money is perhaps the most “valuable” but your gift could also be your time or expertise. Perhaps offer a call with you, or a give free digital workbook. - Is the referral gift on brand for your business?
It’s a bit icky to promote yourself as a sustainable or ethical and then have an Amazon gift card as your referral gift. Consider what you and your business really stands for and keep the gift in line with your values. For example, the referral gift brownies I send are vegan, ethical, and from a UK small business. - Would you be happy to receive the referral gift?
Put yourself in your customers’ shoes and think about how you’d feel if you opened it.
I encourage you to choose the referral gift of your dreams, but there are some potential perils. I would not be doing my duty as a referral gift advocate if I didn’t give you these three nuggets of wisdom:
Tip one: make sure the referral gift really is a gift
It’s not a really a gift if the receiver has to spend their money to get it. So, if you give a 30% discount for your ecommerce shop, while it is very generous, your customer has to make a purchase to get their reward. That’s not cool. They’ve already got you another customer. They’ve already done the hard work. For me, a real gift is a standalone thing which someone can enjoy immediately. The only exception is if you’d like to reward a subscriber. Giving them money off their monthly subscription is a nice gift indeed.
Tip two: you’re saying thank you, not trying to sell
The marketing has already happened- you’ve got a new customer. Don’t now use the referral gift as another marketing opportunity by sending “gifts” covered in your branding. There is maaaaaaybe an exception to this if your branding is beautiful or iconic. You could maybe give “branded” referral gifts if its incredibly subtle, like the gift is in your brand colours or you’ve included a tiny logo. But, you are skirting the line there. The referral gift is all about celebrating your customer and genuinely, sincerely thanking them. Focus on that first.
Tip three: consider dietary requirements and if the person drinks alcohol
This one is so, so important. If you decide on sending a consumable treat as a referral gift, you absolutely must ask the receiver about their dietary requirements. Firstly, there’s no point in sending something they don’t like or can’t eat. They might be vegan or only eat halal food. By not checking you risk wasting your time and money, and your customer can’t enjoy the gift they deserve.
Much more seriously, you might accidentally post an edible referral gift to a customer which contains something they are allergic to. Some allergies are airborne and an allergic reaction could be triggered simply by being in the presence of an allergen. It’s not worth risking someone’s health.
Similarly, sending alcohol as a referral gift is just not a good idea. Even though I absolutely love a negroni or an espresso martini, and these cute, single serve cocktails could easily be posted, I would never, ever send one. Not even the low alcohol ones. Simply, I do not know the recipient’s relationship with alcohol, or if there is a medical reason for them to avoid alcohol, or what their religious beliefs might be. If someone was in recovery from alcohol addiction, posting them alcohol would be incredibly dangerous and insensitive. I also do not expect my clients to disclose any of this information to me, so I wouldn’t even ask “is it ok if I send you a referral gift with alcohol in?”. It’s just a big no- no for me.
For me, brownies are the ultimate safe referral gift. They’re dairy and egg free, can be gluten free and are delicious. If for some reason the recipient didn’t want them, brownies can be given to a partner, neighbour, kids, colleagues, or frozen until the next time guests come round.
How much should a referral gift cost?
Ok, the answer to this question depends on the value of the service or product you sell.
For example, you might give a referral gift to each of your personal training clients who gets a pal to sign up for a personal training contract. Fabulous! If the new client signs up for a year of twice- weekly PT sessions with you, that’s obviously far more lucrative than them signing up for 6 sessions of boot camp.
The value of your referral gift needs to be inline with the value of what the client is buying.
Ways to make your referral gift more affordable include:
- gifting a product or service you already sell (meaning you get it at cost price)
- collaborating with another small business (to agree discounted rates)
- choosing a referral gift from a local business (to reduce delivery fees)
Of course, whichever referral gift you choose needs to make sense financially. Find the balance between an affordable referral gift and one which is also delightful and high- quality. It might take a bit of research to find. (In my case, sampling a few different types of brownies. Poor me.)
How you can get free brownies from me right now (almost)
I really want to send you some brownies. So, I make it as easy as possible for you to get them. All you’ve got to do is tell people in your small business network about me. Or tell your pals. Or tell someone who is looking for a copywriter you know of a great Bristolian gal who knows her way around some words…
When the person you tell enquires with me, they’ll probably use the contact form on my website. It says, “how did you hear from me” and they can select “word- of- mouth”. In the discovery call I’m going to ask who told them about me and they’ll say it was YOU. I’ll write down your name and surround it with love hearts and highlight it with a lilac highlighter.
Then, I’ll email you. It’ll say THANK YOU SO MUCH for recommending me! If the person you sent my way goes ahead with the project (AKA: they sign the contract and pay the deposit) then I’ll be back in touch for your for your dietary requirements and postal address.
I then SPRINT to Cake or Death and order you some tasty, fudgy brownies. They’ll be with you in a couple of days. And, you officially don’t have to share them because they’re ALL YOURS.
That’s it- just tell people about this copywriter called Bonnie and how I write website copy and long-form SEO blogs for small business owners and agencies and you’re on your way to deliciousness.