A customer referral program takes word-of-mouth advertising to the next level. Studies show that referrals are the most trusted form of advertising. It makes sense: nothing is more powerful than the recommendation you get from a friend or a family member for a specific service or product.
However, word-of-mouth advertising does not need to always happen organically. Through a little bit of planning and relevant knowledge about some practical tools, you can build your own customer referral program.
Here are the most relevant steps to set up an organized process in which you can reward customers for spreading the word about your business, services or products.
- Decide on your program’s goal. How many new customers do you want to reach? How much growth do you plan? How many resources would you consider investing in a referral program?
- Identify the program’s advocates. What type of customers do you want to involve as your business advocates? Which services or products you want them to refer to their family and friends?
- Choose what you could offer to your business advocates: provide discounts or coupons to share with their peers, organize contests, giveaways, offer shopping credits in your store, etc. Try to find something that is valuable or interesting enough for your current customers, something that will make them share your message with friends or family. Design similar incentives also for the persons that your business is referred to.
- Before launching the program, set up and check all the social media sharing settings for the campaign. You want the program to run smoothly and quickly. So, have everything ready for your customers who can’t wait to share your business with others!
- Consider using a referral software to easily manage the enrolling, tracking, and rewarding process. If you find it hard to choose from all the available options, talk to our digital marketing experts.
- Alert your customers about the new referral program and its benefits. According to your marketing goals, use social media, write on your blog, send newsletters, provide product or service updates, etc.
- Say “thank you” both to the referrer and the referred… and get ready to build their brand loyalty!
A referral program might look like a lot of work. It is, but it offers exceptional marketing and sales results. Marketing research showed that the referral programs bring the best customers that any business dreams about:
- The new clients you acquire will trust you more.
- They are more likely to buy from you because somebody closed to them recommended your business or products.
- Provide them high-quality services and customer support, and they are more likely to remain loyal customers.
Let’s decide the strategy of your referral program together, and then leave the hard work on us! Contact us today!