We all know the exponential power of referrals. Here are a few tips for generating a lot of new referrals during the New Year rush.
- Finish the paperwork – Don’t open your mouth about anything else until the deal is signed, sealed, and delivered. Get money in hand before you ask for referrals.
- The Easy one – “Well I know the wife and kids are going to be excited when you are back to your old self! Why don’t we add your spouse for only X per month?” Highlighting the benefits of supportive families that exercise together works very well.
- Plant the Seed – “I know you’re going to get great results, especially if you have someone to work out with”.
- Workout buddy – Studies show that members who train with a friend get results quickly, stay motivated, are more accountable, and commit longer. Go ahead and ask the new member “Who have you discussed fitness with lately?” Ask for names to get them going.
- Buddy Referral or Gift Cards – Now we get into a little bribery. Have some high quality plastic cards created. Let them know you can only give them 5 of these. (They can be good for 30 days of membership, redeemable for $50, or similar). Offer to trade these in exchange for the names and numbers of people in their life that would appreciate a good deal and to improve their health.
Sneaky Trick: I’ll ask the new member if they have a cell phone. When they pull it out, I’ll say, “Scroll through it real quick and come up with 5 people who you would like to give a gift card to. I’ll give you one for every person you write down”. They already have their cell phone in hand, making it tough for them to not do what you ask of them.
Don’t be salesy. Just tell them nonchalantly, “Write down the names of at least 5 people you would like to have join you. If any of them end up joining, I’ll give you the value of their gift card as well (free month or $50).
- Press for More – Continue with “Who else needs to work out that you know?” Let them know that the more friends they get in the door, the more they are rewarded. I.e. Refer 3 people and get 6 months free, refer 5 people and we’ll give you an entire year for free.
“If you tell enough people about us and we can get them involved in the next 30 days. I’m tearing up your paperwork before your 1st month’s dues and you get a free ride for an entire year.”
Note: I’ve argued with plenty of club owners about the one year bonus for 5 referrals. T-Shirts just don’t cut it anymore. People need more in order to give up their friends. You would trade one member for five wouldn’t you? Of course you would.
- Digit Fear – At this point you may get “I don’t want to give phone numbers”. To which you reply, “I only have a handful of these gift cards to give away, you can reserve as many as you want, but your friend must be on the list”. The only reason we call is if we haven’t seen them in a few weeks, we’ll remind them that you gave them a gift card and that they’re running out of time to use it. This benefits you since you want them to come in quickly so you can get the extra free stuff. We’re a health club, not a telemarketing firm”. If they are apprehensive (which they shouldn’t be if you ask correctly), ask them to call their friend right now and let them know that you’re securing a gift card for them and that someone at the club will be calling. (Yes, this works)
- The Loser Answer – “I don’t know anyone”. To which you reply, “I’ll bet you know someone. Take a minute to scroll through your phone. If you can come up with 3 people I’ll give you a smoothie. Or come up with 5 and I’ll throw in a t-shirt to go along with the 5 gift cards.”
- Re-Close – Give them the passes and reiterate the freebies and 30 day timeframe to build urgency.
If your staff isn’t working hard for referrals, cut their commissions. When you do this, a strange thing happened…these same salespeople miraculously develop an uncanny ability to get referrals at the point of sale overnight.
Referrals are the most important marketing strategy in your repertoire. Follow the steps above and you’ll end up with a lot more members during the ever-important first quarter.
Curtis Mock is an author, speaker and consultant to health clubs worldwide. He is the Executive Director of GymSuccess.com.
