How much is a single haircut client referral worth?
You send me one I will cut you for FREE. I love that offer. I have lived that offer for all my time in the haircut business. Haircutters balk at making that offer. Do a FREE haircut for a single referral? Why would I do that?
How much is a single haircut client referral really worth?
You do haircuts for $20.
You cut Mike for $20.
Mike sends his friend Bob. Bob gets a haircut for $20. Bob was worth $20, right?
No. Wrong.
Bob will get 12 haircuts this year. Bob is worth $240.00, right?
No. Wrong.
Bob will be a client for 10 years. Bob is worth $2,400.00, right?
No. Wrong.
Bob will buy take-home products and add-on services for decades. Bob is worth $24,000.00, right?
No. Wrong.
Bob will send friends. Those friends will buy take-home and add-ons. Bob is worth $240,000.00, right?
No. Wrong.
Bob’s friends have friends.
A single referral client is actually worth $448,000.00.
So my question is, How much is a referral worth? Is it really worth asking for referrals of every client, every haircut, every time?
Yes. It is.
If I gave you $448,000.00 would you cut my hair for FREE? Of course you would.
How wel
l do referrals work for you? How do you reward referral semnders?