Referral Marketing cannot only be implied as a powerful eCommerce marketing strategy but it involves a speck of trust also. Trust and reliability play an important role in any marketing strategy. Referral Marketing is one of many others. Also, it helps in earning higher conversion rates and revenues.
What is Referral Marketing?
Table of Contents
- 1 What is Referral Marketing?
- 2 What Are The Types Of Referrals in Referral Marketing
- 3 How Does Referral Marketing Work?
- 4 What are the benefits of Referral Marketing
Referral marketing involves transactional communication between a referral and a referee. A referral is someone who is recommending a product to the other person. i.e. referee. Nowadays people are depending more on recommendations before buying a product in spite of vouching for traditional marketing. You can simply ask your existing customers to refer a product to their friends and acquaintances.
Note: The referrals are rewarded in return for promoting a specific product.
How do referees decide while buying a product?
As stated above, people are more likely to rely on recommendations rather than going to market and themselves binging on a product. The referrals could be anybody right from your friends, relatives and acquaintances, influencers and even celebrities.
These all are the common referrals that help in boosting Referral Marketing.
What Are The Types Of Referrals in Referral Marketing
Apart from achieving success in your business, what matters most to the marketers is their reputation. It’s all a name and fame game. Both are vital in up-leveling your business.
Let us know how different types of referrals boost sales :
1. Word of Mouth Referrals
Referrals do not generate on their own. You have to create them by delivering the best and congenial services and also from the word for mouth marketing. That requires healthy and wealthy efforts to serve customers. That’s how you build an everlasting bond with your customers. If your customer is loyal towards you, nobody else can break that loyalty. Now with the onset of technology and other apps, it has become easier to enhance the customer experience. Also, those customers can share their experiences via reviews and posts that will boost referral marketing.
2. Online reviews
Reviews are a powerful way of influencing users to buy a product. One must not underestimate the power of words. A great review can change your business’s destiny and growth. The accessibility to review portals has incessantly boosted more sales. Let’s say a customer buys a product. Also, he feels a sense of contentment with the services. He goes on review sites and publishes reviews. That’s how he influences his friends and other people.
With the advent of social media channels, it has become easier for marketers to share valuable content on portals like Facebook, Twitter, and Linked In. How does it work? Let’s say, you shared a post, collected comments on it. People who are already using your services will share their comments and influence other people to buy your product. This will escalate product value and integrity.
4. Email Referrals
Emails are a more reliable source of promoting your product as compared to social media portals. At least, the information doesn’t get lost in between and is retained safely in the user’s email inbox. You can attract customers with catchy email subject lines. Also, it’s easier to get more referrals from emails. What you only need to do is to add buttons in the header of your emails for social media sharing.
How Does Referral Marketing Work?
You must be pondering on how referral marketing works after knowing about the referrals. You cannot achieve potential business growth until and unless you know how to set up an effective referral marketing program. Let’s see how you can do it :
1. Target your customers with rewards
Your existing customers are your valuable incentives. You must know how to behold them. If you are asking your customers to recommend your product. They would also like to get some motivation in return. These motivations can be simply named as rewards. But you must know first what are the hobbies and interests of customers. This way you can target your market easily.
2. Decide how to reward
This step depends on two major things- First is what is your reward and to whom you are rewarding. Rewards usually depend on the type of customer experience. If you have loyal customers who only buy from you. You can reward them with discounted coupons. If you are delivering your services through an app, then you can reward your users with a desirable item in return for sign-ups. Also, you can reward both referral and referee for a healthy initiation of your relationship with customers.
3. Set up your referral program
Now that you have chosen your reward, it’s time to set up a referral program by using referral marketing software. Now translate your referral program into a landing page. Generate a referral capture page with the help of referral software. Also, You can use tools such as WordPress to create a landing page indicating your rewards and how customers access them.
4. Promote referral program
It’s not enough to just set up your referral program. But promoting it is a major key. Set up your referral program and promote it in different ways. Display it on your landing pages, or share them on social media accounts. The motive is to be accessible to as many people as possible. Also, surveys are a great medium to ask users to refer the product to the brand.
What are the benefits of Referral Marketing
1. Drive more traffic
As compared to other mediums, referral marketing helps you drive more traffic and leads. Referral marketing creates a ripple effect and helps you lead the market with double conversions as compared to other sources. Say, if you have 500 customers, and each of a customer is referring to at least 4 referees. Then you will see massive results and impacts on your business growth.
2. Quick to implement
It is easy to implement a referral program as compared to other marketing strategies. It’s quick to launch a referral program without the requirement of any technical knowledge.
Referral Marketing is a cost-effective means of enhancing your brand exposure. Also, you don’t have to put your much-needed efforts with your customers referring to your product. Just place it up in the essential areas of your website and watch out the results yourself.
After having an elaborative view on what referral marketing is and how we can use it. Considering its benefits, you can use it in attaining business growth.