Have you just started your own business and looking for ways to get people to know about it? Give referral marketing a try. One of the most effective ways of marketing any business, referral marketing paves way for your business to become big. Moreover, if the referral is as easy as a click of a mouse button or rewarding to the customers, your business can reach out to myriad people. This article tells you about the benefits of referral marketing for a small business.
Referrals create referrals. For instance, if a customer shares your referral program on his or her social media account and the followers view it, you have already promoted your business or product. With this, the number of visitors and customers multiply rapidly, giving your business great visibility. You benefit out of the referrals made by your customers and what is great about this is you don’t have to spend a lot on advertising and promotions. The referral programs, in a way, act as advertisements for your business.
Providing your customers with referral rewards will make them love you more. Happy customers will recommend your business to others and will most likely come back to buy form you. Also, referral and referee can create loyal and permanent customers. What more does a small business need to grow!
Great Customer Relationships:
Along with customer loyalty, your business can have better customer engagement. The world is on social media and if you have a presence on social media, you can reach out to more people. This will help your referral program to spread to a great number of people, even internationally. Potential customers can interact with you without any hassles and give feedback through social media, which in turn helps you build healthy customer relationships.
Reduced Sales Cost:
When people recommend your business to the people they know, your business gains a bunch of loyal and satisfied customers. A referee would always trust your product that has been recommended by a friend more than any new customer. Focusing on customer who trust your business and help it grow by advertising it for you can help you reduce your sales budget. Thus, referral programs indirectly reduce your expenses.
But how do you create an effective referral program?
To have a referral program work well for you, you must have a plan for it. Not being clear about what the referral program will be and how it will help you can harm your business. So, keep the following things in mind.
- Set your goals: What is the referral program for? Determine whether you want to increase the sales of your business or get more customers to subscribe to your product. Setting goals for referral marketing will help you work towards the actual requirement of your business.
- Determine the target audience: Be clear on who your target audience is. As a result of this, you can determine what your referral program must have to achieve the goals you set.
- Specify the rewards/incentives: This depends on your goals and target audience. When you know what the referral program is for and who is going to love it more, you can easily decide what kind of rewards your customers need.
- Set a timeline: When do you introduce your referral program? Till when is it going to be valid? Answer these questions before you decide to go on air. Your referral program might not go out of trend during a certain period. Thus, it is important to set the timeline.
- Track the transitions: Finally, after you broadcast the referral program, start tracking the increase or decrease in subscriptions, reviews and responses of the customers and the sales of your business for records. This will help you understand whether the referral program is working well for the business.
Airbnb: Airbnb gives its customers promotional coupon credits when they refer their friends to Airbnb. The Airbnb user can use their coupon credits for future travel.
Uber: Uber has separate referral programs for drivers and riders. The drivers get credits on referring other drivers. The riders receive cash credits for their first ride on signing up with Uber. Also, on referring friends to Uber, the riders along with their friends get amazing referral rewards.
Amazon: Amazon’s call-to-action and vivid header images urge people to try the app. Also, the customers who refer their friends to Amazon Prime get a discount on their next purchase with Amazon.
PayPal: The current referral program of PayPal offers both the referral and the referee INR 400 when the referee signs up using the referral link and receives payments of a minimum of INR 20,000 before December 2018.
Your business can have a similar referral program to entice people to buy your product or visit your website. Loyal customers will keep coming back for more and help to increase your visibility by recommending your products to people. Fathom the expectations of your customers to come up with innovative ideas for referral programs. Play smart. After all, smart marketing is effective marketing!
Author Bio: I am Anish Professional Digital Marketing with extensive knowledge. More than 5 years of experience as a Digital Marketing Strategist and Improve search engine in a wide variety of industries. I have gained expertise in Search Engine Optimization (SEO). I have worked on a wide variety of websites like WordPress, E-Commerce and so. I utilize white hat SEO methods only.