How to grow your business with a referral program
Referral marketing is considered one of the most effective forms of marketing. Even traditional brick and mortar business owners will tell you that nothing beats word of mouth when it comes to acquiring new customers..
Studies show that the 92% people would buy your product if a friend or someone you trust recommends it.
Having said that, referral marketing is also one of the most difficult ways to control. Your clients do the work, but they don't work for you and you don't have to meet potential clients regularly.
The good news is that you don't have to wait for customers to refer new leads to your business.. You can be proactive and set up a system that encourages your customers to find leads for you
Why use referral marketing?
Traditional marketing (creating ads, cold diffusion, etc.) it is time consuming and can quickly become a costly affair. With referral marketing, your customers help you promote your brand and products.
Because of this, there is little effort and expense on your part, since your customers recommend people to try your product.
People, usually, are more likely to consider buying a product when recommended by a friend or someone they know or trust (unlike a company that tells them to buy their products).
Another advantage of referral marketing is a customer's ability to target high-quality leads.. A high-quality potential customer is someone who is interested in your brand and has the ability and the intention to buy your products..
If someone had a good experience shopping at your store, you will most likely tell a friend with similar interests to visit your store. Customers have a personal view of the life of the people they refer to their store, so they won't send anyone.
Key factors in a successful referral program
There are no set rules when it comes to designing a referral program. Nevertheless, you will still be asked to optimize your referral program if you want to achieve the best results.
Remember, he's asking his customers for a favor. Your customers are not obliged to pass new contacts on to you, even if you offer them an incentive.
Clients have to dedicate their time and effort to help you, which is a great question. So try to keep the process simple and easy for them..
Key factors to consider when designing a referral program:
- Define objectives
- Clearly explain the referral program
- Choose an incentive (Incentive to refer and join)
- The recommendation program should be easy to use
- Create a landing page
Setting up your referral program
The following guide will help you get started with your referral program. You can always customize your referral program to meet the needs of your clients.
It is recommended that you receive comments from as many people as possible before starting your referral program. Customers can become discouraged with their referral program if they notice changes at a later time.
Before starting, you must determine why you are implementing a referral program in the first place. Having goals set will allow you to measure the success of your referral program..
The most common goals of a referral program are:
- Acquire new clients
- Increased sales
- Looking for brand ambassadors
- Customer loyalty
Clearly explain the referral program
Your clients must be able to understand the referral program and accept your referral program. Explain the program in the simplest way possible and set up tasks for your clients that are easy to complete.
Customers must clearly understand what is required of them to achieve an incentive to refer to another customer or sale.
If your referral program is complicated with too many actions to complete, then clients will be discouraged from entering the program.
Remember, the customer has to spend his time finding them, customers. They won't succeed every time. So, having too many steps to refer someone will take too long.