It is a way of promoting business products or services to the new customers through referrals- the existing customers. It comprises of word-of-mouth marketing where in existing customers advertise the brand.
Referral marketing, when done right, encourages referrals from word of mouth. Marketers accomplish this by encouraging and rewarding their existing and potential clients to recommend products and services, both online and offline.
Benefits of Referral marketing:
- Referral-based customers are better matched
- More profits at a lower cost
- Bring consumer satisfaction
- Establish long-term relations with clients
- Increases effectiveness of market programs
- Helpful in retaining current customers
How to promote a Referral program:
- Figure out what your customers actually want – their needs, challenges, and goals
- Use targeted email marketing
- Run a paid social media campaign
- Give social proof by utilizing social media
- Mention it on your company website
- Create a new referral program page
- Use it in social media bios as a reminder
- Take help of influencers to promote it
What not to do while running a Referral program:
- Don’t forget that consistency is the must while doing referral marketing
- Don’t leave all on your customers. Develop tools and assets that can help them in supporting your referral program
