You know the facility of word-of-mouth advertising. In fact, you swear by it. However, what marketers usually miss is that word-of-mouth advertising is not something that always has to happen completely organically. With a touch strategy, you will encourage customers to spread the word.
Online businesses that make referral programs can track their brand advocates, incentivize happy customers to market their product, and increase both customer acquisition and retention. A referral program may be a good way to seek out qualified leads in your specific niche. However, how does one set about integrating a referral program into a highly sophisticated sales funnel?
If you are looking to grow your business, retain the purchasers you have already got, and reach your revenue goals, it is time to implement a customer referral program. Simply having one is sweet business sense, because it reveals two things:
- That you're confident enough in your services and team to understand that a referral program would be a positive investment and
- You recognize that despite your good service, some customers might need a push to travel out of their way for you.
The reality is, however, that you are effectively asking your customers to face in situ of your marketing and sales departments. In addition, when referrals are the guts of generating new business, operating with tact, consistency, and patience is extremely important.
How to build a Customer Referral Program
- Set your goals.
- List possible referral sources.
- Make an idea to succeed in out.
- Identify your incentives.
- Create resources to alert your customers.
- Found out tracking.
- Say "Thank You."
Identify appropriate times to ask these clique advocates to require part in your referral program. Because they are people you have worked with before, this is often a less strenuous process starting out. Once you start working with people that will need an incentive (which we mention below), it is vital to think about the connection. For a few companies, counting on the service or product, posing for a referral must happen late within the relationship. For others, it might be upon the primary sale (think apps, digital interface services).Then, once you have asked, wait some more. Which may require a waiting period of months, or maybe a year, to remind them about the referral program again.
- Not all referrals are equal.
Be picky together with your advocates (even your clique ones). Identify people that you think that could market your brand the way that it should be marketed. Within that clique, whom does one have a stellar, standout relationship with? Alternatively, does one have an existing customer that came from a referral and worked out? In addition, remember: be careful for referral fatigue, and confirm you are not overburdening your contacts.
Customer Referral Program Ideas
- Contests or Giveaways
- Social Gifting
- Customer Loyalty Tiers
- Seasonal Campaigns
- Exclusive Events
- Referral Discounts
If your customers are trying to find a more direct return on their referrals, you will also offer them discounts supported what percentage leads they carry to your business. Remember, acquiring a replacement customer is far costlier than retaining an existing one, therefore the money you lose on the discount are going to be made up for with the leads that you simply convert.