Two Spoke Forums banner

1 - 13 of 13 Posts

·
Premium Member
Joined
·
1,830 Posts
Discussion Starter #1
If you are, chime in!
 

·
Premium Member
Joined
·
1,830 Posts
Discussion Starter #4 (Edited)
I've got a brand new in box and sealed 32gb wifi iPad 3, and I want to run an incentive contest for referrals to out group strength classes at my studio. What would be the best way to go about that?

How long should it last?
The person who refers the most wins, or every person referred gets you an additional chance to win? Random drawing better, or winner take all?
Are the rules for this kind of thing tricky to come up with?

I need to generate about $650 in revenue to break even. Our group classes range from $150/mo for 1x/week and $200/for two classes a week.

Our cycling workouts are $75/mo for tue/thu workouts as well as some saturday group rides and MTb interval short track cross country workouts on Sundays.
 

·
Registered
Joined
·
272 Posts
I've not any experience in that regard, Integrate, so I'll just give my 2 cents as a consumer, for what it's worth. Some questions to consider. Sorry, not many answers here...

How
 

·
Registered
Joined
·
272 Posts
oops Sorry. Wrong button

How long should it last? I guess that depends on how frequently you see your clients. I'd give them 3, maybe 4 visits worth of time to come up with some good referrals (if you go that route) or just to enter the contest.

I like the fairness aspect of a random drawing; but I understand the desire for more referrals. Maybe cap it to a certain number (3?). I could see someone giving you names of folks that have no interest, just to have more entries into the contest.

Best of luck with you endeavor. I hope it drums up a lot of business for you. That's a sweet prize for a hopefully deserving client!
 

·
Total noob (& forum admin)
Joined
·
12,350 Posts
Don't have it go to the person with the most referrals. That's a disincentive for someone that maybe doesn't know a lot of people, but might still have some good referrals. Better to get two good leads than ten bad ones.

Duration will depend on how often you see your clients. If you only see some 2x/month, then you need to run the contest for at least two weeks. Give them some time to come up with friends/family they might want to refer.
 

·
Don't Call Me Shirley
Joined
·
18 Posts
Hi Integrate, I work for a digital marketing firm here in Minneapolis. I've run a number of referral based promotions for clients, and they all seem to work a bit differently, with varying degrees of success.

To answer a few of your questions, I think to determine the length of your promotion you have to consider the lead time between a referral and a dedicated client. Do people regularly come for one session and not come back?

I'd start by simply saying that each new referral has to complete a number of sessions. This will increase the stakes, and help close potential leads. By the description of your sessions, it sounds like a month or two might be enough time for someone to bring friends in for a few sessions so they stick around.

Also, I suggest making the playing field fair for all customers by stating each referral counts as one entry into a drawing. Often attrition is a factor in these contests because one person gains a large number of leads, and all others consider their chances of winning a prize diminished and eventually stop trying.

Further, think about a platform where you can track and promote those who are bringing in referrals. If you have a Facebook page, email newsletter, or website, reward and congratulate both the referrals and the regular customers for helping you out, and ultimately helping others with fitness and regular exercise.

Lastly, you may want to consider bundling a promotion for referrals into this contest. Give them discounted rates, or some sort of perk. This not only helps attract new business long term, but it also helps those who are bringing in referral to close the deal. Lessen the barrier to entry and more people will take advantage. We call this eliminating FUDD's - Fears, Undertaintly, Doubts, and Dealbreakers.

Hope that helps! Let me know if you have any questions!
 

·
Premium Member
Joined
·
1,830 Posts
Discussion Starter #9 (Edited)
Hi Integrate, I work for a digital marketing firm here in Minneapolis. I've run a number of referral based promotions for clients, and they all seem to work a bit differently, with varying degrees of success.

To answer a few of your questions, I think to determine the length of your promotion you have to consider the lead time between a referral and a dedicated client. Do people regularly come for one session and not come back?

I'd start by simply saying that each new referral has to complete a number of sessions. This will increase the stakes, and help close potential leads. By the description of your sessions, it sounds like a month or two might be enough time for someone to bring friends in for a few sessions so they stick around.

Also, I suggest making the playing field fair for all customers by stating each referral counts as one entry into a drawing. Often attrition is a factor in these contests because one person gains a large number of leads, and all others consider their chances of winning a prize diminished and eventually stop trying.

Further, think about a platform where you can track and promote those who are bringing in referrals. If you have a Facebook page, email newsletter, or website, reward and congratulate both the referrals and the regular customers for helping you out, and ultimately helping others with fitness and regular exercise.

Lastly, you may want to consider bundling a promotion for referrals into this contest. Give them discounted rates, or some sort of perk. This not only helps attract new business long term, but it also helps those who are bringing in referral to close the deal. Lessen the barrier to entry and more people will take advantage. We call this eliminating FUDD's - Fears, Undertaintly, Doubts, and Dealbreakers.

Hope that helps! Let me know if you have any questions!
The group class people have a 9-12 mo life span, longer if they get involved on the bike. My place is like Hotel California, once they check in, they never leave! :)

If I understand your response (thanks a ton btw!!)
1) Each person referred = additional chance to win
2) We've got a Constant Contact enewsletter that goes out each week, we can mention it there and on FB.
3) Offer a discount for each person referred
4) Term of participation needs to be outlined, and I'm thinking either have the referred person pay for two months up front to secure the revenue, or they need to play at the studio for two consecutive months.

Maybe I can toss in one of our "I HATE MY TRAINER" workout tees? Or is a discount better?
 

·
Registered
Joined
·
40 Posts
In the experience I have with marketing and promotion (though its more focused on forums and websites), I have noticed that throwing in a free T-Shirt is a good idea. It not only give someone something free to wear but it gives your business advertising. Lets say they want to wear it at your gym one day to show their pride and then after their workout they go to a store and while standing in like, the person behind them reads the shirt (as we all tend to do) and then gets a membership :) Of course I am sure you know this.
 

·
Registered
Joined
·
1,544 Posts
CD covered it pretty well. All I can add is to infer a sense of urgency with a realistic deadline.
I like the free T if you can get them cheaply enough.
 

·
Premium Member
Joined
·
5,352 Posts
Make it a drawing type of referal contest. Throw in a few water bottles and tees along with the Ipad being the grand prize. Every referal gets 5 points or chances at the raffle. Every return visit of refered earns one more chance in raffle.
New referals that complete five visits get a free water bottle and tee.

The time frame should be 6 months and dont forget that new referals should be allowed to enter the raffle by getting new referals themself.
 
1 - 13 of 13 Posts
Top