VIP Referral Rewards Program

This program is designed to reward our customers for referring their friends to us to become new customers. THIS PROGRAM NEEDS TO BE IMPLEMENTED WEEKLY so the VIP referral gift card must go out within 7 days of the purchase! The reward is given when the referred friend makes a purchase, following these guidelines:

• The sale must have at least $250 in profit.
• A VIP Referral Gift Card will be sent for first purchases only.
• Profit is calculated from adjusted cost to sale amount (not from actual cost).
• The award will be $25, or 5% of the adjusted profit, whichever is more.
• The maximum award will be $250.

This is the procedure:

1. Customer refers new customer.
2. New Customer (Referral) is routed by Reception to appropriate salesperson.
3. Salesperson completes sales cycle and selects “Referred by Friend” as the Contact Source in the customer file AND as the Sales Source for the invoice.
4. Salesperson enters the referring customer’s name in Properties: Referred By.
5. Use Referral- Unknown BM source to mark when a new customer comes in and:
   • The new customer does not know the name of the person(s) who referred them
   • The referrer is not a current customer and has not shopped at our store
6. Each week a list of Referrals that have spent money is pulled from Business Mind by the Marketing Department. (This is done by tracking first purchases to see if their contact source was “referred by friend.”) ONLY THE FIRST PURCHASE IS REWARDED. Subsequent purchases are not rewarded unless CSW’d for – see below. At the onset of this program, a list of Referrals that have made a first purchase since the beginning of the year will be pulled from Business Mind.
7. Using the list of Referrals pulled on Business Mind, an Excel file will be generated. The Excel file will include the name of the Referral, the name of the customer that referred the Referral that spent money, when their VIP Referral Card was issued, how much money was issued on the card, and the date that the VIP Referral Rewards Card was used.
8. The customer that referred the new customer will be sent a letter and a VIP Referral Rewards Card thanking them for thinking of us. The sales associate will write a personal letter on NON-BRM (Business Reply Mail) letterhead and enclose the gift card.
9. Marketing will update the customers’ files with “VIP Referral Rewards Card sent” and how much money is on the card. This information is also added to the Excel file. *A VIP Referral Gift Card will be sent for first purchases only.* They will also update the Business Mind file of the customer who was referred.
10. VIP gift cards sent to customers will be tracked by Marketing.
11. The VIP Referral Rewards Card will have no expiration date, and can be combined with other gift cards. There are no limitations and can be used on anything. It is not redeemable for cash but is a cash value card.
12. When a VIP Referral Rewards Card is used for a sale, the salesperson must use “VIP Referral Rewards Card” as the tender type.
13. Marketing will track weekly when the VIP gift cards are used, and show a monthly graph of GI & GP.

Salespeople are not to ask Marketing for the VIP referral card the day the sale is made. Marketing pulls the list weekly and will route the VIP referral card to the appropriate salesperson in a timely manner.

There can be times when the referred customer only spends a small amount the first time they come in. Later in the month, the referral comes back in and spends more money. In this case, the salesperson should keep track of the additional sales and CSW to Marketing to send the referring customer another VIP rewards card for these other purchases.

The letter that is included with the VIP Referral Rewards card should say:

Dear _____________________,

I wanted to thank you for sending _______________________ to shop with us. I feel honored that you would think of us when speaking with your family and friends. To show my appreciation I am giving you a gift card in the amount of ___________. This gift card can be used as cash value towards anything in our store.

Please visit us at www.leohamel.com to check out our newest brands and upcoming shows.

Thank you again, and we look forward to seeing you in the future!

Leo Hamel

Write the letter in the following professional format:

1. Write the letter in Quick Editor in Business Mind.
2. Center the letter appropriately on the page.
3. Make sure you use NON-BRM letterhead for these letters.

The letter needs to have the date, salutation and address included.

5. Make sure to have Leo sign them.
6. The letter needs to be folded, stuffed, and sealed neatly.