You do not have to be big as Amazon, Alibaba or Uber to benefit from referral marketing. Your business, no matter how small it is can get benefits from a referral program as well. It is the best way for you to increase your customer base and traffic. When customers do buy something, they look for reviews online as well. Actually, they are far more inclined to believe a friend’s recommendation.
Let us see how these referral programs help your small business
Creating loyal customers is the key. Referred customers are 18% more likely to remain your customers, and have a higher lifetime value. They trust their friends and on the other side incentives for referring friends, such as discounts, store credits, and free products gives your referring customers a reason to keep coming back!
Other thing is referral sparks virality. Today word of mouth travels fast, especially because of social media. Since a referral program, makes sharing easier, this will go even faster. When a customer shares your referral program on their social media platforms, all of their friends become aware of your brand (and they develop trust because of their friends’ word). If a few of these friends become new customers, there is a strong possibility that they will also share the referral program with their own friends via social media. Thus, the cycle will keep going on and on!
Your small business needs to use its resources wisely. Referral programs are easier and cheaper than other forms of advertising and Customers who spread the word to friends and family provide advertising which money cannot buy! With a referral program, you are not spending as much money (and valuable time) on customer acquisition, and you are not targeting complete strangers with traditional ads or shootouts. Rather you are targeting your existing customers, who already have developed a positive relationship with your brand or service. These loyal customers will promote your business for you; so you will not have to shell out nearly as much money for customer acquisition.
Further, most referral program messages include prewritten text from your company itself, and also have space for the referrer to add their own personalized messages. Regardless, every referral message comes from a customer, not directly from your brand or service. Therefore, referral programs are a smart and genuine play for more reasons than one!
Building solid relationships for any business is important, but for a small business, solid relationships with your customers mean everything. Customers who refer their friends do so because they trust your small business. Once they hear about your referral program, many of these customers will quickly think of a few friends who would also love what you do, and share your business with them. Referral programs help create better relationships because customers who refer friends to you will feel responsible for part of your business’s success.
Our ‘Refer-a-friend’ program delivers a new customer acquisition, customer retention, and marketing strategy for your business. There are four referral options and you can choose any one as you wish.
- Single Side Reward - If person A makes a referral and person B signs up on your website, person A is rewarded $X.
- Double Side Reward - If person A makes a referral and person B signs up on your website, person A is rewarded $X and person B is rewarded $Y.
- Multilevel Single Side Reward - If person A makes a referral and person B signs up on your website, person A is rewarded $X. If person B makes a referral and person C signs up on your website, person A gets an additional $Y and person B gets $X. We can configure this to as many levels as you want.
- Multilevel Double Side Reward - If person A makes a referral and person B signs up on your website, person A is rewarded $X and person B is rewarded $Y. If person B makes a referral and person C signs up on your website, person A gets an additional $Z, person B gets $X and person C gets $Y. We can configure this to as many levels as you want.
Let us move on your business to the next higher level.