What is referral marketing?
Basically, it is the process of promoting one’s services or products to new prospects through word of mouth. Offering great referral rewards can help motivate your customers to interact with you o a regular basis and to talk to others about your business. Of course, this leads to additional revenue for your business.
You may be surprised to know that referrals make up an astounding 65% of new business. It is safe to say that a referral program is really a powerful marketing technique simply because people deem it more trustworthy. After all, referrals come from family members, friends, or neighbours, or colleagues and when they recommend services and products, it’s because they really like those and not because they’re going to gain something from doing so. People are four times more likely to purchase or try the services of a business when they are referred by a friend. Yes, that is how important referrals are.
Now that you understand the importance of a referral program for your business, where do you start? To help you out, here are some ways you can ensure that your referral program will be a success:
Spread the Word
Many companies tend to overlook customer awareness when they are launching their referral marketing campaign. What they do not realize is that even if they have good referral rewards, if their customers do not know about the program, the rewards won’t be that useful. That is why it’s important that you make your referral program noticeable by strategically placing them where they can be noticed by customers. Of course, you should promote your referral rewards program on your social media and blogs, too.
Offer Rewards that are Valuable
If you really want customers to recommend your products and services, then you should also give them a good reason to do so. Your rewards should be something of value so they will know that you appreciate them, too. Note that not all consumers want the same incentives, so you should understand what motivates your users and try to make options for rewards available.
Don’t Complicate Things
Your customers are going to bring in new business. The last thing you want is for them to think twice about doing so because you ask them to take too many unnecessary steps just to participate in your referral program. This is a common reason for program abandonment. Make it easy for them to share your referral offer! Make it as simple as possible.
Double the Benefit
Remember that people just don’t want incentives for themselves – they also want others to benefit! So make sure that you have a double-sided incentive that would benefit both the referrer and the referred customer.
You don’t want your customers to feel like all you want from them is a referral. A simple thank you email or a token can really go a long way. This will help you build long-term relationships with your customers and encourage them to make more referrals.
Referral marketing generates high conversion rates so you should use it effectively. To make it effective, you have to reach as many customers as you possibly can. ReferLinks Online Marketing can help you with that! Give us a call and we can talk about how we can improve your program and other marketing strategies, too!
At ReferLinks Online Marketing, we are firm believers that sticking together as a community is most important. Below you will find simple, yet effective recommendations