Are you looking for new and effective ways to market your business? A great way to do so is to allow your customers to advocate for your business using a referral program. According to a report from Nielsen, nearly 92% of consumers trust a recommendation from family or friends more than an advertisement.
This is what makes referral marketing so effective. If you’re hoping to learn more about referral marketing programs and how they work, keep reading. In this guide, we will outline the basics of a referral marketing strategy while giving you some tips that can help you get started.
Referral Programs: The Basics
A referral program is a marketing tactic in which brands encourage customers to advocate for their brand and share it with others. The purpose of this marketing strategy is to bring in new customers that are likely to be interested in your brand.
You can ask customers to think of anyone that they know that could benefit from your products or services. Then, ask them to refer your brand to these high-quality leads.
These leads are often likely to convert, as they have heard about your brand and your offerings from someone they know and trust. This allows new leads to feel that your brand is one that they can trust which can lead to conversions and sales. If you’re hoping to use this word-of-mouth marketing method, keep reading for some referral marketing strategies and tips.
Define Your Goals
A great way to lead your referral program in the right direction is to ensure that you have identified your goals for the program beforehand. While the obvious goal may be to broaden your customer base and increase sales, there may be other goals that you can meet with your customer referral program. For example, you may also use your program to increase customer loyalty and trust.
Knowing your goal can help you make the best decisions for your referral program. It can also help to measure your success and make improvements along the way.
Craft Your Referral Message
Creating a referral message for both your current customer and those that they send referrals to is a great way to streamline this process. You want to craft a message for your current customer that clearly defines what they need to know about your referral program. You should include information on how your customers can send referrals as well as what the benefit of doing so will be.
You want to give your customer some kind of incentive for sending referrals to others. For example, you may create a referral point system that offers discounts or special offers for referral program members. You also want to make sure that the message that referrals send to others is engaging and convincing.
Start Your Referral Program Today
A referral program can be an effective way for companies to market themselves using the help of their current loyal customer base. Use this effective lead generation strategy today for great results.
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