Every entrepreneur I have verbal to always
refers to that because purchase is very important for him. One of the best
sources for cause purchase for an entrepreneur is through ‘Referrals’. 92% of consumers
believe in professional recommendations vs. only 40% believe in Ads in search
results, 36% ‒ online video ads, 36% ‒ subsidized ads on social media sites and
33% ‒ on the internet advertising ads.
Learn more why you are missing out if you are not running a formal referral program for your business.
5 factors a business owner should
consider while establishing up the right referral incentives for his business:
Learn more why you are missing out if you are not running a formal referral program for your business.
In this blog, I want to focus on a key aspect of Referral Management System
that many businesses get wrong – establishing up the right referral incentives.
Customers really like referring their favorite brands and are excited when they
are compensated for their really like. While a referral management system can
result in fantastic ROI for a business, an imperfect incentive structure can
really hurt and deter even your happiest clients from recommending you.
1. Your customer should not appear “easy”
2. Incentives should
be arranged with your product or service
3. Soft Rewards work! They really do!
4 Add a personal contact – Customers really like
it..
5. Ensure you still earn profits – It is still business
Let’s talk about
the advantages of referral marketing –
Trust - Most of the customers from referral marketing choose the
product or company because their acquaintances have done so. They already have
an inherent trust factor playing; hence there is no need to spend any
additional money on advertising. This largely reduces the marketing budget.
Sales increase –Before any sale, companies spend a lot in generating leads by
cold calling. However with referral marketing, generating leads happens
automatically. Most of the leads do not need much pushing before turning into customers.
This has a direct effect on sales when opposed to cold calling which takes a
lot of time and persuasion.
Retaining customer base – This is a tricky one but if played right, referral marketing
helps in maintaining a loyal base of customers. Once a customer is happy and
satisfied, chances are that he will think of switching over to any company and
will promote equally. However this can backfire if the services are not up to
the mark. Then the promotion can snow ball into negative publicity for the
company. Hence it is not only important to maintain service levels but also to
meet customer’s expectations.
In today’s digital
age, old marketing techniques do not hit the mark. It’s time to resort to new
age marketing mantra and referral marketing is here to stay.
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