Cash for Customer Referrals

Here's a different way to expand the business: offer cash bonuses for customer referrals. CompuBank has a program it says is very popular that offers customers $40 each time a referral becomes a CompuBank customer. The bank says some customers are earning into the thousands of dollars and that its customer referral base is growing exponentially with the incentive program. One of the reasons behind the program is a survey the bank conducted that showed that 70 percent of its customers would recommend the bank to a friend or acquaintance.

Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 3, 3/01