6 Strategies to Avoid in Referral Marketing

6 Strategies to Avoid in Referral Marketing

6 Strategies to Avoid in Referral Marketing


Referral marketing is a great strategy for many businesses. It allows you to use your existing clients to generate future business, building their loyalty and increasing your customer base at the same time. Unfortunately, many referral marketing programs are poorly designed. They end up underutilized, ineffective, or simply failing altogether. Avoiding some of the biggest no-nos of referral marketing, however, will help you build a program that will work for everyone involved.

Mistake 1: Making the referral process difficult or hard to find. Ideally, you want your referral program to be easy for everyone involved. The simpler it is, the more likely your existing clients are to use it. Feature it on the front page of your website and in other key locations to make it simple for your customers to send their friends to you.

Mistake 2: Offer unclear incentives. If customers don't understand what they're getting out of the deal, they'll be less likely to actively refer their friends. If you create a vague program, you'll get vague results. Clear, concise explanations of what your customers can expect, on the other hand, will bring in customers who are eager to take advantage of the referral program.

Mistake 3: Offer incentives your customers don't want. The best rewards are the ones that bring customers back into your business: a free service or consultation for a new client that they've brought in, a percentage discount, or a free item with purchase. 

Mistake 4: Lose track of referrals. Your clients have put in the work to recommend your business to their friends and family. When they log into their accounts or visit your business again, they should reap the rewards of their efforts and receive the credit they were offered.

Mistake 5: Fail to regularly remind your customers of your referral program. It should be featured on your social media accounts, prominent on your webpage, and mentioned regularly on your blog. Your most loyal customers should be faced with information about the referral program regularly so that they'll remember it when they have the opportunity to recommend their business. This will also help ensure that happy customers get the rewards they deserve for sending customers your way.

Mistake 6: Make referral links hard to follow or complicated. Just like you should keep things simple for your existing clients, so you should keep it simple for new incoming clients. Make the process as clear as possible and use as few clicks as possible to attain the end result. 

When you create a clear, user-friendly referral program, everyone wins. You bring in new business, your existing customers receive credit for their efforts on your behalf, and new customers find a company they can count on. Revamp your referral program today to reduce your errors and develop a program that your customers will love.

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