Patient Referral Programs: Best Practices for Doctors [+Tools]

As a healthcare provider, you’re dependent on a steady flow of patients coming into your practice. One of the best ways to find new patients – and high-quality loyal ones –  is through word-of-mouth referrals from your current patients. These referrals are powerful because they show someone appreciates your care enough to recommend you to friends – and friends trust peer recommendations more than any other marketing factor when selecting a practice. 

Even with a high standard of care, referrals may seem unpredictable and hard to track. But there’s a way to make referring your practice easier and more trackable – a patient referral program. Although you can’t give out rewards for referrals, it’s perfectly fine to set up a referral program for tracking and simplifying the referral process.

Here’s how doctors and healthcare practices can leverage a patient referral program, with our expert tips and best practices for success. 

What is a patient referral program?

A patient referral program makes it easy for patients to share your medical practice with friends and family members, and let you track the sources of your referrals. Thanks to unique referral links, individuals can effortlessly share details about your services, and each referral will be linked to the person who referred it. This approach enables you to easily ask for referrals, and identify who contributed to bringing in new patients.

Note: Patient referral programs are different from physician referral programs. While patient referral programs encourage existing patients to bring you new patients, physician referral programs involve primary care physicians making referrals to specialist healthcare professionals.

Benefits of patient referral programs 

Patient referral programs are a great way to engage your existing patients who are already likely to recommend your services. By building trust, you can expand your patient base without relying on costly marketing strategies. Here are some key benefits of patient referral programs:

Increased brand awareness: Referral marketing programs leverage the enthusiasm of satisfied patients who share their positive experiences. This kind of word-of-mouth marketing not only enhances your practice’s reputation but also provides social proof, attracting the attention of potential patients.

Stronger trust in your services: Referrals are often viewed as more trustworthy than advertisements or messages from your own practice—people tend to believe what their peers say. A Nielsen study found that 84% of people consider referrals to be the most reliable and effective form of advertising.

Creation of warm leads: When clients recommend your services, they connect you with individuals who are actively looking for a new doctor. These referrers understand your offerings and can introduce you to others in need of your services.

Improved conversion rates: A personal recommendation greatly increases the chances that others will choose you for their medical needs. Due to the trust factor, they are more likely to engage with you. Research shows that a personal endorsement can be up to 50 times more effective in driving purchases compared to traditional marketing and advertising.

Consistent customer loyalty: Referred patients are more likely to remain loyal to you and continue generating revenue. They have a 16% higher lifetime value compared to non-referred patients.

Easier referral tracking: Establishing a referral program makes it simple to track referral sources. With the right referral software and the links it generates, you can easily attribute each referral to the patient who made it.

Before you launch a patient referral program

To establish a successful patient referral program, it’s essential to be genuinely referable. People are more likely to share their positive experiences when they have compelling reasons to do so. And the quality of your care plays the number one role in their willingness to recommend you – especially since incentives are out of the question.

Aim to go above and beyond by creating a patient experience that sets you apart from the competition. Do your patients feel appreciated both during and after their visits? 

• Are you offering personalized, high-quality care that caters to each patient’s unique needs and helps them achieve their goals? 
• Do you remember and acknowledge patient interests and goals?
• Do you minimize wait times?
• Does your waiting room feel homey and comfortable?

A great way to assess your readiness for referrals is to look at what others are saying about you. Are you receiving excellent five-star reviews, testimonials, and positive feedback on social media? Do you score highly on patient satisfaction surveys? Are patients singing your praises or referring friends even before you’ve implemented a referral program? If you can confidently say yes to these questions, you’re on the right track to building a thriving referral program.

Referral software for doctors [Free Tools]

These referral tools for doctors are a free and easy way to help you start your referral program.

Want a fully automated referral program for your medical business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Patient referral program best practices

Now that you know you’re ready for a referral program, follow these tips to help make the best referral plan. 

Don’t offer referral rewards – they’re illegal and unethical for doctors

Both laws and codes of ethics make it clear – you can’t offer incentives for referrals as a physician. 

In the US, the Anti-Kickback Statute prohibits you from paying out any rewards for referrals when the new patient’s care is at least partially covered by Medicare, Medicaid, or any other federally funded healthcare program. Violating this law can result in hefty fines.

“In some industries, it is acceptable to reward those who refer business to you. However, in the Federal healthcare programs, paying for referrals is a crime.” (Office of the Inspector General, A Roadmap for New Physicians:  Fraud & Abuse Laws)

But even if a referral uses private insurance – or pays out-of-pocket – state laws may be stricter and prohibit you from offering any referral rewards, no matter how someone pays.

Plus, the American Medical Association states that it’s unethical to reward any person who sent a referral. This is because a referral should happen based on the quality of care your practice provides, and not because the referrer stands to receive a reward.

“To be ethically appropriate, word-of-mouth referrals must be voluntary on the part of current patients and should reflect honestly on the practice. Physicians must not offer financial incentives or other valuable incentives to current patients in exchange for recruitment of other patients. Such incentives can distort the information patients provide and skew the expectations of prospective patients, thus compromising the trust that is the foundation of patient-physician relationships.” – AMA Code of Medical Ethics

Other countries have similar laws and codes of ethics for physicians, so familiarize yourself with them. We still recommend that you steer clear of referral rewards if you’re based outside the United States, because of ethical considerations in the healthcare industry.

Still, don’t overlook referral programs just because you can’t provide rewards. Non-incentivized referrals are the most authentic type of recommendation. They demonstrate that patients are wholeheartedly endorsing you because they truly want others to experience the same compassionate care. Plus, you’ll benefit from the trust that people place in their friends and family, even in the absence of any incentives.

Know when – and how – to ask for referrals

One of the easiest and most effective ways to get referrals is to simply ask for them. Since you’ve established a strong relationship with your patients and have had plenty of one-on-one conversations, it should feel natural to reach out.

Source

Timing is crucial when you make your referral request. Look for moments when your patients are especially happy and have you at the forefront of their minds. For example, consider asking when they:

• Leave a fantastic review or comment on social media  
• Provide positive feedback in a survey  
• Express gratitude during or after an appointment  
• Return for their fourth well visit or more, indicating they value your care  
• Mention a noticeable improvement in their health
• Recommend your services to friends outside of the referral program  
• Complete a treatment or procedure and seem satisfied  

If you know a client was happy with your services, it’s a great time to ask for a referral when you send the invoice for a completed appointment.

Once you’ve pinpointed the right moment, how do you make the request? If you’re worried about stumbling over your words in person, it can be helpful to prepare and memorize a script. Alternatively, you can ask for a referral via email, if you often use it to communicate with your patients. Here are some tips on how to ask:

• Express your gratitude for choosing you as their doctor.
• Remind them of the reasons they selected you, highlighting why they would be great at referring others.  
• Inquire about who else in their life might need a new doctor.
• Suggest specific individuals who might need your help – perhaps someone with a recent injury or ongoing back or neck pain? Remind them that anyone could potentially gain from your services.  
• Finally, provide a clear link to your referral program to make it easy for clients to take action. If you’re speaking in person, hand them a card with the details – and a QR code to take their offline interest online and right to your program.

You might also consider sending a thank-you card to longstanding patients. In the card, acknowledge that they are an amazing patient, thank them for their loyalty, and introduce your referral program using a QR code.

Promote your program on lots of channels

To enhance participation in your referral program and boost both referrals and revenue, it’s important to promote your program across a variety of channels:

• Connect with all your current and past patients by sending targeted emails about your referral program. This approach not only draws in new referrers but also keeps the program fresh in their minds. We suggest sending these emails on a monthly or quarterly basis.  
• Incorporate brief promotions for your referral program in newsletters and other regular communications.  
• Encourage referrals during the conclusion of appointments or in conversations with patients.  
• Mention your program in the emails that accompany invoices.  
• Distribute printed referral flyers featuring a QR code that links to your program page, facilitating a smooth transition from offline to online sharing.  
• Display “refer a friend” signs in your practice, complete with a QR code for easy access to the program.  
• Add a note about your program in your email signatures.
• If you have a client portal, embed referral promotions directly within it, including direct links for easy access.  
• Feature a prominent banner or hero image on your website’s homepage that links directly to your referral landing page.  
• Consider using subtle promotion techniques on your website, such as adding a link in the footer or menu. If users can easily find and access it, they are more likely to engage with your program.  
• Share updates about your referral program on your social media platforms.   
• Utilize Referral Rock’s Monthly Summary emails to engage current program members, providing them with a personalized overview of their referrals.

Remove the login requirement  

With Referral Rock’s One Click Access links, your clients can effortlessly start sharing your practice. This feature enables them to join the program instantly, eliminating the need for sign-ups or form-filling.

Make sure to include One Click Access links in all your promotional emails regarding the referral program, including newsletters and transactional emails, not just those focused solely on referrals.

Referral Rock also allows both new and existing members to access their referral portal using popular social logins like Google and Facebook, simplifying the process since they won’t have to remember a password.  

Make sharing easy  

To enhance participation in your referral program, prioritize a user-friendly and straightforward sharing experience. Users should be able to join the program with just a few clicks or taps. Once they reach your program page, the sharing process should be smooth:

• Simplify the program instructions into three to four easy-to-follow bullet points for better understanding.   Emphasize the benefits of sharing – even without rewards, patients will enjoy the benefits of helping friends improve their health.
• Remind participants of the unique advantages your practice provides.  
• Keep your program page clean and organized—avoid overwhelming visitors with too much text.  
• Include a clear call to action (CTA) that encourages sharing.  

Additionally, aim to minimize the effort required to make a referral.

• Offer various sharing options that align with popular communication methods, such as email, social media, and text messages.  
• Create a referral link that can be easily copied and shared anywhere—referral software can generate these links with ease.  
• Prepare a friendly, pre-written message for referrers to send to potential patients/clients, making it feel personal and welcoming. Highlight the unique benefits of your practice, but make sure it’s written and addressed from the referrer’s perspective.  
• Ensure the program is accessible and easy to share on mobile devices.

Get your team involved

Your staff can significantly contribute to the success of your referral program. Encourage them to talk about the program and the advantages of your practice with patients.

Remind them that this initiative aligns with your mission to provide people with access to the quality care they need to maintain or improve their health. It’s not just a way for your practice to assist others; they’re also enabling patients to support their friends.

Additionally, think about giving your team referral cards to distribute during appointments. This method keeps your referral program top of mind for both your staff and your clients. Ensure these cards link to the digital aspect of your program, featuring QR codes for easy access to information without overwhelming customers with details!

In addition, it’s crucial for your staff to fully understand how the referral program operates so they can confidently respond to any questions.

Show your gratitude  

Thanking customers for their referrals not only makes them feel appreciated but also encourages them to refer even more people. Make it a habit to send a handwritten thank-you note whenever a referral results in a new client. You might also think about acknowledging their support publicly on your social media channels.  

When customers notice that their referrals are valued, it builds goodwill and enhances their loyalty. Even without tangible rewards attached, a sincere ‘thank you’ can greatly motivate them to continue bringing new clients your way.  

Select the right referral software  

Since your main priority is delivering outstanding patient care, you likely have limited time to manage a referral program manually. This is where referral software becomes essential. These tools simplify and automate the referral process, making it easy to track referrals and identify their origins. They also provide valuable insights into your referral program, helping you assess its effectiveness and make necessary adjustments.  

Additionally, these tools create unique links that facilitate the promotion of your program through social media, email, and other platforms.  

Referral Rock improves the creation, tracking, and marketing of your referral program, making it an essential resource for anyone aiming to run a successful referral campaign.  

With Referral Rock, you can:  

• Easily track referrals: Each participant gets a unique referral link, allowing you to identify the source of every referral. Customers can also monitor their referral activity through personalized dashboards.  
• Automate your marketing: Keep your customers engaged with automated promotional emails and make sharing easy with password-free links.  
• Integrate with essential tools: Connect Referral Rock effortlessly with over 50 different applications.  
• Evaluate program performance: Quickly gauge how your program is performing and make data-driven improvements.  
• Get started quickly: With Referral Rock, you can launch your program in just a few days, with expert assistance available throughout your setup and launch process.

Start a patient referral program

A patient referral program enables you to leverage personal recommendations to bring in new patients. The benefits of setting up this program include straightforward tracking of referrals, increased exposure for your services, and steady client growth. To stand out, focus on providing an outstanding experience, actively market your program, and make sharing as simple as possible.