Whether a conscious effort or not, every day we refer and recommend many products and services of different brands, all simply because they make our lives better. Whenever we like a particular brand and have a great experience using their products or services, we like to brag about it.
We like to share our experience with certain products with our friends, family, or even acquaintances because we wish that they also have the same experience using it. This is nothing but in person referral marketing.
Though we don’t necessarily know it, by doing word-of-mouth publicity help a brand become more widely recognized. Essentially, we help a company build a referral program to attract new customers.
Referral marketing is thus a planned effort by the business to generate leads for them through referrals. The company induces its existing customer base to refer their brand in their circle of people and in return they will be rewarded justly.
This is a systematic, planned effort and there are certain steps you should follow before you build a referral program for your business. Here is an overview of these steps.
- First and foremost, define your goal for this referral marketing effort. What you want from this strategy. Once you settle down on your goal, brainstorm on the idea for the incentive scheme
- Make your existing customer base happy. A satisfied customer will act like a brand ambassador spreading a positive word; keep them by your side.
- Shortlist your incentive ideas and check which one would work for you. Giving cash rewards doesn’t necessarily help always; most of the time customers want something that gives them value, so try to devise some non-cash referral program ideas.
- Handhold with your customers and explain how to participate in the incentive scheme and how they will benefit from it.
The best part about referral marketing is that it can be applied to any business, big or small, and in any industry. However, depending on your industry and what business you are into, you can propose an incentive scheme for your customer base.
The referral program is for your customers. Whether its B2B or B2C marketing, what matters is that you keep a track of what matters to those who you work with, and thus offer incentives accordingly. These incentives are bound to have a psychological impact on your clients and can hopefully them to work with you for the long term by spreading a positive word about your business.
However here is the catch, when you build your referral program, make sure you keep the previously mentioned tips in mind, and build a referral that is specifically relevant to your business. This can become your custom made scheme.
However, if you don’t have much time and energy to waste on devising a program yourself or you are confused about what to do, there are always ready-made referral programs available that you can buy.
So all you have to do is to choose the one that suits your business and industry type, implement it, and enjoy the benefits when they come to you.