From Ankesh Kothari’s http://www.MarketingHotsheet.com
Indy Lube is a quick lube-chain with 28 outlets in all. Indy Lube attracted most of its new clients because of their good location and through newspaper advertising.
One day, its CEO Jim Yates sat down and calculated the total amount he spends on
promoting Indy Lube. And the number of new clients they attract every month.Once he had the numbers at hand, he could figure out how much he could spend to attract new clients through other means of advertising.
After brainstorming various marketing ideas, Jim decided to go with a referral card idea. All the chains of Indy Lube started giving away 3-4 cards to all customers when they paid for their car service.
One side of the card offered $5 off to all new clients on their first oil change.
The flip side of the card had blank fields where the customer could fill in his name and give the card to their friends.
When one of the friends redeemed this card, the person whose name is written on the flip side of the card would receive a $10 certificate towards their next oil change!
With this simple strategy in place of giving discounts to:
1. New clients
2. And clients who refer their friends……Indy Lube started attracting 1,200 to 1,400 new clients per month!
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