Referral marketing is the art of turning your customers into becoming your most zealous promoters by offering them the right kind of incentives, rewards and discounts. People are likely to buy a product or hire a service if it has been recommended to them by someone they know and trust. A great referral program is one that not only encourages buyers to become promoters of the business, but also makes them willing to spend more money and buy more of your products or service.
Here are 6 secrets to running highly effective referral campaigns…
Secret #1: Be really good at what you do
Work hard to build a brand, do one thing in your business – it could be a product or a service – better than anyone else. That is the best way to attract referrals. Remember, when you ask someone to refer you to their friends, they are essentially trusting you to deliver the promises that they make on your behalf. Can you live up to the great things your referrers are saying about you? Focus on creating value for your customers first.
Secret #2: Offer financial incentives
One of the best ways to win referrals is to offer financial incentives such as discounts, promo codes or coupons to your customer for referring your products or services to others. Some companies have referral programs that involve offering discounts for every referral a customer makes by email or on Facebook, Twitter or Email. Offering financial incentives such as discounts instills a sense of urgency in your customers and causes them to take action.
Secret #3: Make your referral campaigns personal
There are studies that show that a lot of people value recognition over financial incentives. A good referral program is one that offers both in equal measure. Perhaps you can automate your referral software program to send a “thank you!” note to everyone who refers your business to someone else. Showing appreciation is a great referral marketing strategy. This is one of the easiest things you can incorporate into your referral campaigns.
Secret #4: Remember the Pareto Principle
The Pareto Principle states that 80% of your business comes from just 20% of your customers. So your referral marketing should focus on the top 20% of your customers and create an outstanding experience for them. You don’t want to spread yourself thin by trying to make every customer deliriously happy with your business – that’s not possible when you have only a limited number of staff working for you. Instead, focus on your 20% best customers and make them really happy. They will be the biggest evangelists for your business.
Secret #5: Know WHEN to ask for a referral
There is a time to ask for a referral and that is after a client has complimented your work. A lot of business owners are uncomfortable about asking for referrals, so when someone praises your product or service, writes a great online review or gives a video testimonial, take the opportunity to inform them about your referral program and tell them what’s in it for them. You will need to use an effective email marketing strategy for this.
Secret #6: Use InviteBox
InviteBox is one of the best referral software programs out there, which is really easy to use. InviteBox allows you to setup a referral program on your website in just a few minutes. You can set the rules of your own unique referral program using InviteBox – just copy and paste the InviteBox widget into your web pages. This is the easiest and fastest way to get your online referral program off and running.