Best Referral Marketing Strategies You Most Try Today
Hello friends, how was your weekend? I hope it was certainly great. I want to apologize for not dropping a post yesterday due to some technical issues, I am very sorry for that, and I promise to do everything within my power to post at list a topic every day.
OK, let's begin, today we will be looking at a very old form of marketing known as referral marketing. I am sure almost every one of us at a time has done one referral or two to our family and friends either knowingly or unknowingly. Referral marketing is mostly done offline via word of mouth but my mission today is to take you through this form of marketing and how you can apply it online since the goal of this blog is to help you promote your business online.
What is Referral Marketing?
Referral marketing is a way of promoting or spreading the information of a particular product or service to a new customer via an existing customer. This form of marketing is usually done offline through word of mouth and no advertising is needed. Unlike that traditional advertising method of marketing, referral marketing is considered to be very slow but effective way of marketing because the referrer usually starts by only referring family and friends and it takes a while for the network of referred people to grow.
Can Referral Marketing Work For my Business?
Referral marketing can work for just about any kind of business, ranging from small businesses to multinationals, there is really no barrier that can stop you from using this form of marketing as long as you have the right strategies to implement it.
Below are some businesses that can try out a referral Program. Please remember that the list is endless you just have to figure out a strategy.
- Travel Agencies
- Retail Store
- Hospitals etc.
What Referral Marketing Strategies Can I Use?
Referral strategies are usually tailored to fit a particular kind of business. Some factors like location, tradition etc. can affect the productivity of a referral program if not well tailored. Below are some strategies to help you kick off.
- Start with a goal. In other to be very effective in referral marketing you must have a well-defined goal. This goal may include a targetd number of sales, customers etc. for a specific period. Have a record of the level where your business is at the moment and the level you want it to be at the end of you referral program.
- Have an Attractive Referral Program. You must prepare a well-tailored referral program that is attractive to your customers. E.g. let’s say you own a barbing saloon you can tell your customers that whenever they refer a new customer, they get to pay half the price for their own hair cut. This sounds very attractive especially if the majority of your customers are youths that need extra cash.
- Ask your customers for referrals. It is a good thing to have a well-tailored program but you most tell customers about your referral program. To make it easier you can print little fliers that that explains the referral program in details and distribute to customers as they come into your office. It is always better to give it to them while they are coming into your office, reason is that they will have the opportunity to ask questions from you.
- Joint venture referrals. You can ask other businesses around that are having referral programs to help you talk about your referral program to their customers while you also help them talk about theirs with your own customers. This helps to expand the program fast in the community.
- Staff training. All your staff must be adequately informed and trained to carry out the referral program goal. This helps to make sure that everything runs smoothly without any problem from any department of the organization.
What are the advantages of referral marketing?
- Reduction in advert budget
- It improves business revenue through new customers.
- Increases sales cycle
- It provides free publicity.
What are the disadvantages of referral marketing?
- Referrers focus only on people they know
- It is relatively slow in result delivery compared to other forms of marketing
- Progress cannot be tracked easily
- The audience is limited.
What is the difference between affiliate marketing and referral marketing?
The major difference between these two forms of marketing is that affiliates and the new customers don’t know each other while referrers know new customers personally.
How can I do referral marketing online?
The best and most effective way to do referral marketing online is through the use of social Medias. You can talk about your new referral program to your friends using any of the social media platforms and they can also distribute the information to their friends as well. Before you know, it will spread like wildfire.
Always remember that the key to effective referral marketing program is "good strategy". You may also make changes to you strategy if the result is not good enough. I hope you now have a vivid understanding of referral marketing, join me tomorrow as we look at another interesting way to grow your business online. If you have any questions or comment please email me at firstname.lastname@example.org.