As more and more people begin to value word of mouth promotion over flashy, costly advertising, referral marketing has recently made a huge digital comeback. In our day and age of mass social media usage, referrals become even easier to achieve via special programs such as InviteBox. Not only is it easier and faster to get on the bandwagon via referral programs, but people are given an incentive to participate in such marketing with the provision of instant rewards.
Incentives, incentives, incentives!
Although about 80% of satisfied customers are theoretically willing to recommend products, fewer than 30% actually do. This is a crucial statistic for businesses to be aware of, since it shows that great marketing plans and satisfied customers are often not enough for expansion. The majority of people are busy, and often only respond to direct incentives and easy options instead of recommending a product/service for the sake of it. Due to more referral programs being available with a wider variety of features, there is an option out there for everyone, and many businesses know this.
The Problem with Flashy Ads
At the same time, simple Social Media advertising is becoming less effective; news feeds become packed with thousands of posts, and company updates/announcements/promotions are often missed or not given a second glance. However, since over 90% of organizations still rely on social media for content marketing, referral programs are becoming the next big thing – they are interactive, fast and provide great results. It’s no secret that people trust their friends more than companies, which means that the same approach is now being used online. It’s the classical example of word of mouth advertising, but adapted to modern trends. As well as customer referral programs, employee referral programs are also gaining considerable popularity because many companies do not have the time to go through countless interviews, and trust current employees to recommend good specialists. As you can see, the common growing theme here is trust.
Referral Programs – An Entrepreneur’s Best Friend
Another reason why referral programs will be dominating social media marketing this year is the number of rapidly growing online Start Ups. Starting a business is not only challenging and time consuming, but often costly, making marketing very hard on your budget. However, many entrepreneurs now acknowledge that there is no better way to rapidly expand a customer base other than encourage already existing customers to recommend the product/service for a particular reward.
Not only is this a cost-friendly alternative, but it also saves you time because your customers are taking care of your marketing for you, and doing this in the most effective way possible too. It may be shocking to learn that around 15% of people trust advertisements, this number shoots up to around 90% when considering peer recommendations. So although the importance of advertisements used to be heavily emphasized, people are now shifting towards word of mouth as the main marketing channel. 2018 is the year of “Word of Mouth” advertising over everything, so get involved and be one of the first to include referral programs in your main strategy.