When a happy client tells their colleagues and peers about your MSP services and support, it’s far more powerful than any marketing message. In the B2B sector, referrals influence 86% of buying decisions. But referrals don’t always happen organically. That’s why you need an MSP referral program.
Growth-minded MSPs can set up referral programs to encourage and reward clients for spreading the word. The key is making it easy and worthwhile for clients to recommend you.
If you’re wondering how to get referrals — or how to get more referrals — keep reading!
What’s an MSP referral program?
An MSP referral program is a structured strategy to encourage existing clients to recommend your services to potential new customers. By offering rewards — such as gift cards, account credits, or discounts — you can incentivize satisfied clients to share their positive experiences and generate high-quality leads more likely to convert into long-term clients.
Why MSPs should care about referrals
- Cheaper client acquisition. Getting new clients through referrals often costs less than traditional marketing because you’re not spending money on digital ads or creative content.
- Higher quality leads. Referred clients tend to be a better fit for your business because they already have an idea of what you offer
- Better retention rates. Clients who come through referrals often stick around longer because they’re more likely to trust you from the get-go.
- Easier onboarding. Referred clients may already have information about how you work and who they’ll be working with, based on what your customers have shared with them.
- Stronger client relationships. When you ask for referrals, it shows you value your clients’ opinions — this can actually make them feel more invested in your success.
Referral program vs affiliate program: What’s the difference?
There’s often confusion around referral programs and affiliate programs. While there are some similarities (both aim to bring in new customers, use tracking links to credit the right person, and can be great for growing your business), they’re actually two very different tactics with completely different systems and outcomes.
Referral programs:
- Your existing customers spread the word.
- They usually share with colleagues, friends, and peers.
- The rewards are often product-based, like discounts or free gifts.
Affiliate programs:
- Anyone can join, not just customers.
- Participants share with their audience (like blog readers or social media followers).
- The rewards are usually cash commissions (a percentage of the sale).
Referral programs are best when you have a loyal customer base, your product is something people naturally talk about, and you’re in a niche market.
Affiliate programs are best when you want to reach new audiences quickly, your product has broad appeal, and you’re okay with a less personal approach.
What makes a good MSP referral program?
If you’re sold on the idea but aren’t sure what a good referral program looks like, take a look at this checklist.
Clear incentives
You need to give people a reason to refer you. This could be cash rewards, service credits, access to beta programs, or even expedited or VIP-level support for a month.
Easy process
If it’s a hassle to refer someone, people won’t do it. Make the process as quick and easy as possible — maybe it involves clicking a button or, at most, filling out a quick form.
Timely follow-ups
When someone refers a potential client, jump on it. Quick response times show you value the referral and hints that you’ll be proactive and easy to work with.
Two-way rewards
Consider rewarding both the referrer and the new client. Maybe both your existing customer and the new client get one free month of managed services. This is a great way to kickstart the new relationship and make everyone feel like they’re getting something.
Tracking system
You need to know where your referrals are coming from. This helps you reward the right people and measure your program’s success — you can even increase the incentive value for customers who send multiple referrals your way. Tracking referral sources can also help you see when referred clients end up referring clients!
Consistent promotion
Regularly remind clients about your referral program. Schedule a monthly email reminder or encourage your customer success team to share more information with clients when they’re on a call.
Personalized touch
Tailor your approach. A personal thank you note can go a long way in making your clients (both old and new) feel appreciated.
How to set up your MSP referral program
A well-structured referral program not only incentivizes existing clients but also fosters a sense of community and trust around your brand. Follow these steps to design and implement an effective referral program.
Define your program goals and metrics
Start by setting clear goals — maybe you want to increase your client base by 20% in the next year, or you want to boost revenue by a certain amount. Then, choose your metrics. Think about things like the number of referrals received, conversion rate (how many referrals become clients), revenue generated from referrals, and cost per acquisition compared to other marketing channels.
Choose your referral incentives
Next, decide what incentives to offer your referrers. How about cash rewards, where referrers get a percentage of the new client’s first invoice or a flat fee? Or maybe you decide to give referrers a discount on their next bill or some free hours of service.
You might also want to consider a tiered reward system where referrers get increasingly better rewards the more referrals they make. Don’t write off non-monetary rewards either, such as gift cards, tech gadgets, or even donations to a charity of their choice.
Develop a clear referral process
You want to make referring as easy as possible for your clients. Here’s how:
- Create a simple referral form. This could be on your website or sent via email. Ask for basic info like the referral’s name, contact details, and any relevant notes.
- Decide how referrals will be submitted. Will clients email you? Use an online form? Call you directly?
- Plan your follow-up process. How quickly will you reach out to new referrals? What will you say?
- Communicate the process. Make sure your clients know exactly how to refer someone and what happens next.
Create promotional materials
It’s time to spread the word. Consider:
- Drafting a handful of emails explaining the program to your clients
- Creating a dedicated page on your site with all the program details
- Crafting some eye-catching posts to share on your social channels
- Giving clients physical cards they can hand out (old-school, but can be effective)
Automate parts of the referral process
Set up emails that go out automatically after someone makes a referral. You can also automate reward delivery and create a referral dashboard where clients can see their referrals and rewards.
Set up tracking and reporting systems
Last but not least, you need a way to keep tabs on all your referrals. Start by choosing a tracking method. This could be a simple spreadsheet or a tagging referrals in your CRM. Then, decide what to track.
At a minimum, you want to record who made the referrals, who was referred, when the referral was made, and the outcome of the referral. Finally, set up regular reporting — a monthly cadence is a good place to start — and plan for payouts.
It’s important to look at the big picture here. Don’t just count referrals, look at things like:
- How many referrals become clients
- How much revenue referred clients bring in
- How long referred clients stick around
Tip: Create a simple dashboard with your key metrics — it’ll make spotting trends much easier. For example, if your goal is to increase conversions, monitor how many referrals go on to become paying clients. If you’re not hitting your goal, you can dig into why by asking those referrals or seeing where in the process referrals tend to drop off.
How to get referrals: 8 strategies for MSPs
Ready to get your referral wheel in motion? Follow these steps.
1. Share your program in email campaigns
Research shows that 91% of customers are willing to give referrals, but only 11% of salespeople ask for them. Use your email marketing to promote your referral program. Send out dedicated emails that explain the benefits of referring new clients and outline your incentives. Include a clear call to action that encourages clients to get involved, such as “redeem your 20% discount now” or “get one month free.”
2. Take advantage of positive feedback
When clients leave positive feedback and testimonials, seize the moment. Thank them for their kind words and ask if they know anyone who could benefit from your services. This is a natural time to request referrals since the client is already feeling good about your work.
3. Promote your program on social media
Use your social media platforms to announce your referral program and regularly promote it to your existing clients. Create engaging posts that explain how it works and the rewards clients can earn.
4. Make the most of social proof
Highlight success stories and testimonials from satisfied clients in your marketing materials. When potential referrers see how others have benefitted from your services, they may feel more inclined to recommend you to their contacts. Sprinkle testimonials throughout your sales email sequences, in upgrade reminders, and in feature and service releases.
5. Reach out to your best clients
Identify your most loyal and satisfied clients and reach out to them directly. Let them know about your referral program and ask if they can think of anyone who might need your services. Personal outreach like this can lead to higher-quality referrals.
6. Create referral-friendly content
Develop content that makes it easy for clients to share your services. This might include referral templates, social media posts, or even referral marketing emails that clients can customize and send to their contacts.
7. Incorporate your program into client meetings
During regular check-ins or quarterly business reviews, discuss your referral program. Make it part of the conversation and remind clients how they can help you grow your business through referrals.
8. Network with complementary businesses
Build partnerships with businesses that offer complementary services, such as web developers, security and access control companies, or software brands. They can refer clients to you when their customers need your expertise, and you can do the same for them in return.
Grow your business with Syncro
Ultimately, customer satisfaction is the foundation of any referral program. And with Syncro, you can enhance efficiency and service delivery to exceed customer expectations.
See what Syncro can do for you.
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