The referral marketing strategy is a powerful way of generating new business. The word-of-mouth, more so coming from a reliable referee is given more value and is more effective than advertisements because people buy from those they trust.
It is one thing for information about your products to spread organically and it is another thing for you to purposely devise a customer referral strategy.
Customer referral marketing is an effective yet simple strategy that benefits both small and large companies. To put it in perspective, if your customer has a good experience with your product/service he/she would put out a good word about your brand to friends and family creating a network of customers.
So how do you get your customers to refer your product?
1. Focus on Customer Experience
Studies have shown that customers are more likely to spread negative experiences with a product than positive experiences. This emphasises the importance of getting customers to only spread positive feedback and avoiding even the slightest possible negative feedback. The customer’s experience starts from the moment they walk in your store or from the first page of your website. Everything from there on out will create their perception of your product and your brand as a whole so make it a memorable one.
Communicate with your customers through newsletters and questionnaires; from this, you can get an idea of who among your customers can potentially be good referees. Not only that, you can include direct questions such as “Would you refer this product/service to your friends or family?” or ask them to rate their overall experience.
3. Rewards Based System
Having a rewards-based system can also be an effective strategy to get existing customers to convince their friends and family to try out your product. You can start by offering commissions, upgrades, gift cheques and redeemable points depending on how many new customers they can bring in.
4. Discounts and Freebies
Nothing can make customers happier than discounts and freebies. Having regular sales and discounts will not only make your loyal customers feel like they are being rewarded but this is also a perfect time for you to showcase your products to the new flock of customers lured in by the promise of sales and discounts. On the other hand, giving freebies and testers to your customers can add to the circulation of your product. This will not only make your customer happy, but there is also a high possibility that they will share or give away the freebies to their family and friends.
5. Creative Marketing Strategy
A creative marketing strategy that engages your customers is one sure way of getting new customers through them. With the advent and influence of social media networks, it is easier to do so. Take advantage of its accessibility and reach. An example would be creating Facebook, Instagram or Twitter contests (there is no limit to your creativity here, the more original and engaging, the better) use your sensibilities of the current trends and incorporate them with your strategy.