Join Dina Shapiro for an in-depth discussion in this video Obtain referrals, part of Lead Generation Foundations.
- Before we had radio, TV, magazines, or the Internet, people shared their opinions about products or services with friends or family, through everyday conversation, or what's also called, word of mouth. But today, we see how word of mouth has evolved, to more formal and accessible Referral Marketing. Referral Marketing promotes products or services to new customers through referrals. Think about your own experiences, whether you're buying something big, like a car, or something you haven't used before, like a new software program, or a small but personal item.
Have you asked people you trust for referrals before you buy? Have you searched online to see what customers think of that product or service before you buy? Referral marketing is a powerful tool, because people trust opinions of other people they trust, whether it's family, friends, colleagues, social media influencers, or celebrities. In fact, studies show that referrals, consumer online opinions, and editorial content, rank in the top five forms of trusted marketing and advertising.
Referral marketing is a targeted tool, because the person making the referral knows their network well: what they like, what they need, and which products or services they seek. Let's talk about three ways you can create an effective referral marketing program with enticing incentives. Request referrals from your Customers by telling them about your program. Promote it consistently across all marketing efforts, such as your website, newsletters, emails, and even invoices.
After a customer makes a purchase, give them an incentive they can share with friends quickly and easily. Here are a few examples of incentives. Send a Coupon code to share, and when a referral makes a purchase, provide a discount code for future purchases. Give reward points for writing new Reviews, provide Bill credits for recurring products or services, offer Add-on services at no extra charge. Leverage your Employees. Train them about all the business benefits of obtaining new leads through referrals, and how to market your referral program to customers.
Employee incentives could include year-end Bonus, extra Vacation days, Recognition at company meetings, external gift card Rewards. Create strategic Partnerships. Identify complementary companies to cross-promote. Let's say you own a dog-walking business; you might partner with a dog-grooming service. Mutually beneficial incentives can include: sales or Profit sharing agreements, mutual Discounts for each company's employees, or Bartering services.
A couple of reminders as you develop your referral marketing program. Use unique, one-time codes, so you can Track referrals and prevent the same offer from being reused. Collect email addresses through referral links, so you can Nurture those leads through their buying journey. Include the name of the referral for credibility with new leads. Test multiple incentives to understand which performed best. This can include different sizes, such as a 10% versus 20% discount, or different types, such as reward points versus bill credits.
A referral marketing program with enticing incentives will create loyal advocates, and the opportunity to leverage their networks to generate consistent new leads.
Finally, discover how to monitor your customer's experience after the sale, reward their loyalty, and measure your program's performance. By the end of the course, you'll have the tools and action plan to keep optimizing your lead generation strategy and expand your customer reach.
- Setting goals
- Publishing engaging content
- Creating compelling offers and calls to action
- Optimizing landing pages
- Developing databases
- Transforming leads into customers
- Making the purchase process clear and simple
- Monitoring social channels
- Measuring results