Posted by Glory Eke
The newest trend on the marketing scene is referral marketing. Referral marketing is a strategic development in the marketing genre, which promises the growth of loyal customers, explosive visibility of your products and services, leading to fast paced astounding profits.
Simply put, referral marketing which is also commonly known as word-of-mouth marketing, is nothing but the concept of people purchasing products based on someone else’s influence or opinions.
Referral marketing empowers the customers to spread your good word and in return, you reward them directly or indirectly for their services.
Customer referral program ideas are a powerful marketing tool since people mostly trust the opinions of other people they respect and know, whether they are friends, family members, social media influencers or popular silver screen stars.
As consumers, we always want to share our stories, the products we buy, and the brands we choose. So the results of customer referral marketingare enhanced further, when our buying experience and the products or services that we are purchasing are found exceptionally good.
What Is The Main Difference Between Referral Marketing Vs Affiliate Marketing?
Although at a superficial level, both referral and affiliate marketing seems to be the same, where you generate business through individuals who do not work or know you directly.However, in reality, they are rather different ways of acquiring new customers.
The main difference over here is that, while in a referral program,your referrals know each other as a member of their family or as friends; in affiliate marketing program new customers do not know each other personally.
So in other words, we can say, while the motivations of referral marketers are altruistic the needs of affiliate marketers are essentially financial.
How Do You Use And Implement Referral Marketing?
So, when most businesses are dipping tentative toes in this water, and many like what they are feeling, here are some killer tips that can help you to launch your own referral marketing campaign to harness the effectiveness of this marketing skill.
To implement a referral program the best way is to start is to generate an email campaign, with the help of referral marketing tools like an automated CRM software that will send direct invitations to a list of participants who are likely to promote your campaign by referring your business to others.
Typically, your online referral marketing invitations will go for:
Make sure that your invitations should be exciting and tempting while adhering to to the established quality of your brand. Learn how you can create beautiful lead capturing email templates, which should make your referral program work without bogging down your potential invitees with too much unsought after information.
Pay Attention to Your Analytics
It can always be that you are probably getting referrals but you simply do not even know about it. Google Analytics has a section on referrals that can aid you in pinpointing other external sites that are linking and referring people to your website. Once you are well versed in analyzing Google Analytics this referral-report can be further broken down to not just visitors, but also customers who have promoted your products. Providing you with a deep insight and understanding of which websites are most qualified for the promotion of your brand.
Offer Compelling Incentives
Always remember, even your most loyal customer will participate in your referral program if and only if the rewards are worthwhile.
In an ideal referral-marketing program, participants are subtly compelled to participate with your brand. For an example, many organizations instead of offering cash per referral offer percentage off on the participant’s next purchase or provide a gift to anyone from the participant’s friends and family members who join the campaign.
There are three major factors, which you must consider over here while offering incentives.
1. Value: If the participants of your referral marketing campaign are adults, do not try to motivate them by offering cheap gifts. Always see that your rewards must have some value to your customers.
2. Relevance: If you are not providing discount on your products or services for participation in your referral program, always offer something that is relevant to your brand. Additionally make sure that you scale your referral gift to the value of the product or service that you offer.
3. Time Window: Never make the participants wait for weeks or months before they can use their participation rewards. In the same note if your offer is for a discounted vacation it should have enough time-window for the participants to make their plans and so the reward should not expire within the next 30 days.
Referral marketing is in reality one of the more personal way to attract customers. Appreciate your participants individually for their efforts. You can use your customer’s names in all your referral-marketing materials. According to study published in the Global Perspective on Contemporary Marketing Education, this little gesture have shown significant impact for enhancing referral marketing campaigns in all verticals of the industry.
People often trust what other customers say about your products or services more than what you say. So remember Reviews Are Referrals Too.
Encourage your customers to leave reviews after their purchase. Although these reviews may not drive traffic into your website, but they definitely help to convert people and make them your customers who are still sitting on the fence.
Referral marketing is a powerful and important component for every business. We at ConvergeHub have also configured a referral program, whereby our CRM users can refer Leads or any other sharable files and documents from the Library to anyone, who upon acceptance of the offer will be able to use ConvergeHub CRM (Limited Edition) free, as a greeting for the referred visitor on our CRM site.
If you have liked this article and our ideas have been helpful for you, write in the box below. We are always open to educating ourselves with new thoughts.
Glory oversees the reseller channel. She has a business accounting degree and has worked in sales, within real estate and professional leasing, at Deloitte & Touche (one of the top five accounting firms), retail management, and within the high-tech software industry (POS and CRM). She is excellent with relationships and is well respected within the reseller channel.