Referral marketing as the name suggests refers to promoting your brand’s product and services through word of mouth.
It’s interesting to think, that referral marketing plays a larger part in our daily lives than we may realize. Every day, we directly or indirectly promote so many brands without even knowing it.
We do it without any intension and expectation, so much so that we barely notice. What if a company rewards you for your efforts? That would probably make an average consumer like you put in a little bit more effort to help the company succeed.
Hence, while developing a B2C referral marketing you always should think about an incentive or scheme to launch that will really induce the customers to refer your product or service.
The truth is, even if you put your heart and soul into creating a product or service that really gives value to your customers, it’s more than likely that you will never be able to fully optimize your customer base. As such, B2C referral marketing is one of the most effective options
The most important point to keep in mind here is B2C efforts target the end consumer who is going to buy the product for personal use.
B2C referral marketing program can help you build your customer base if properly curated and implemented. For instance, let’s say you have a simple company’s website link that shared by your existing customer to a prospective new customer to increase brand awareness. If the new customer likes what he sees and trusts the recommendation made by the referrer, then the conversion can happen faster.
Here are the points you should keep in mind while deriving B2C referral marketing:
When you start your B2C referral marketing efforts, first and foremost analyze where your customers are coming from and how they are engaging with your brand. This helps to understand where you should put more effort.
Make sure that you are present on multiple channels and your referral program is actively integrated on all these channels.
Another thing you can do is weave your referral point in your call-to-action itself so at the time of purchase, only you can ask your customer to like, share, or comment, etc.
What are the best practices that you can initiate in terms of B2C referral marketing?
B2C marketing efforts target the customers at the brand level to create brand awareness in a certain audience’s mind. Referral marketing works invariably in every industry and for all businesses. So what are the best initiatives you can implement?
- Give all your customers an equal opportunity to participate in the referral program. Open the position of brand ambassador to whichever customers best engage with your business
- Don’t complicate your referral marketing program - keep it straight and simple
- Make use of your social media presence to spread the word
- Reward each referral made generously so referrers are motivated to refer further
Some of the best examples that we can cite with respect to a B2C referral program are:
PayPal, a leading online payment company that is in stiff competition from Google wallet, Apple pay, etc, launched a strong referral program to generate more business. They offered a staggering 100 dollars for each referral brought to the app.
Another big brand that implemented a successful referral program is Uber. It offered 20 dollars as a referral reward to both the person who refers the link and one who clicks of the link to download the app. Now Uber is one of the world’s most well-known companies, operating in over 80 countries.
When it comes to referral marketing ,all your marketing efforts should be targeted at your customers to keep your existing customer base happy and satisfied. As such, referral market should be used as a stepping stone to generate more leads and business.