Our 2019/2020 Referral Program
The majority of our new business comes from customer referrals, and that's awesome, but we wanted to reward those customers who refer us somehow. Traditionally, we did this by crediting their account with £250 as a token of our appreciation, but whilst some referred customers spend less than that a year, others go on to engage us far more. Our solution was to review the whole programme with a percentage based reward in the first and second year rather than a fixed rate. For the year commencing 2019/2020 we therefore have the following rates for customer referrals.
|First Year||10% + £50|
These figures are based on gross spend for the year and are calculated at the end of the customers first and second years. This means that for some, if not most customers we may not make any profit from them in their first or second years and indeed in some cases make a loss, but we're ok with this. Let's work out some examples so the programme is clear.
|1||£250||10% + £50||£75|
Commission is normally credited to your account within a few days of the referred customer's first and then second year with us.
Let's assume that customer A referrs 5 other customers to GEN over the course of a year with spends of £250, £300, £450, £700 and £2000. That would be a first year commission payment of £250 + £370 = £620. Customers usually spend less in the first year which is why the commission for year 2 is higher, so let's assume our 5 customers in the second year spend £450, £800, £900, £1200 and £4500 then year two commission would be £1175.50, so in total that's £1547.50 in the bank for simply referring our services to your customers.