Every day, millions of conversations happen between different brands and businesses. People share and discuss their experiences with certain brands and talk about the good as well as bad experiences with the company.
If one is delighted with the experience, they recommend it further. However, if they are unhappy with it they give negative remarks. This is nothing more than referral marketing in technical parlance.
So what is referral marketing?
Referral marketing in simple words means word-of-mouth publicity. It means spreading the word about the product or service that you have personally used or experienced within your circle of people. It is different from traditional advertising.
Referral marketing works in the traditional advertising or marketing form can be compared the phenomena of “going viral”.
Want to dive deeper into the wider concepts of referral marketing?
Learn about B2B and B2C marketing.
As you are aware by now, B2B means business-to-business marketing while B2C means business-to-consumer marketing.
There is a larger difference between both marketing strategies in reference to their target audience and content.
In B2B marketing, the main customer of a business is another company or business rather than general consumers.
Their marketing efforts are targeted towards the decision-makers in a target company to whom they propose to sell their products or services.
Whereas in B2C oriented companies, the company sells its product and services to the consumers directly who are interested in buying products for their personal use.
When it comes to B2B oriented companies, referral marketing plays a vital role, as one gets most of the business from a reference.
It is important to put more efforts into this by following certain basic formula that can help you get good referrals that enhances our business.
- You need a strong product or service. If your product or service is unique and gives value to your customers then they will readily spread a positive word about their experience.
- Keep your existing customer base happy by attending to them. Your existing customer is the first point from the referral begins. They are your brand ambassadors in the true sense
- Make it easy for your customers to spread a word about your business, don’t complicate things, otherwise the customer will get disinterested.
- Ask existing customers for references if they are satisfied and happy with your product or services. Happy customers will be more than willing to refer their friends or family.
- Devise a way to reward your referrals. If you give your customers some brownie points, they will happily spread the word about your business as they are motivated to get something in return.
Some important points that you take into consideration before launching B2B referral marketing program are:
- Use a concise call to action for referral marketing
- Generate a link that can easily be shared in the network
- Follow up with the referrals
When talking about B2B referral marketing, couple of best referral program that we can cite are:
Look at Google’s very strong referral programs. They have many tools and applications for professional use and they reward every reference generously that leads to new registration.
Additionally, Amazon gives high importance to referrals as they know they are the main source of generating business. They reward customers with gift cards or cashback offer. Furthermore, Amazon never forgets to thank their customers, as one person referred to their business means they get a customer for life.
Referral marketing goes a long way in generating leads for your business without investing much. If strategically planned, referral marketing can go a long way to help spread a positive word around for your business.