If You Don't Ask, The Answer Will Always Be No.
Picture this… you’re looking to try out a new workout app but have no idea where to start. You could do some research online or take a scroll through the App Store, or you could just ask your friend who you know has been absolutely smashing their fitness goals recently. Which advice are you more likely to follow? Odds are, your friend’s suggestion is going to stand a much higher chance. And this is the power of referral marketing!
A marketing strategy that encourages and incentivises others to advocate on behalf of your business and your brand. It’s no secret that word-of-mouth is a powerful tool, and with the rise of social media, now more than ever is it easier for us to share our opinions and personal experiences. The idea behind the practice being that people are more likely to trust recommendations from someone they know, rather than a business’s own advertising efforts. But what makes referral marketing so effective?
It’s low-cost: Unlike many other traditional marketing channels, like Facebook or Google ads for example, referrals rely predominantly on the goodwill of existing customers and supporters to spread the word, making it a very affordable means of attracting and acquiring new clientele.
It’s highly targeted: Leads generated through referrals are typically far warmer and of a much higher quality, since the person knows and trusts the referrer as a reliable source.
It allows you to expand your marketing reach: There are virtually no limits to your customers spreading the word about your business, and by tapping into their diverse and widespread circles, you stand a far higher chance of being able to expand your client base too.
How Can You Maximise Your Referral Earning Power?
A crucial component of ensuring frequent and consistent referrals of your brand, is to determine how best to incentivise and influence your customers. Generally speaking, people tend to stick with companies that do right by their customers whilst at the same time making them feel supported, respected and heard. Not only by offering superior quality service to your clients but by listening to them and asking for their feedback too, you are able to create and sustain far more authentic connections - and inspire customer loyalty that can help you increase your referrals.
Another great way to start building your collection of referrals is through simply showing others what you do and proving to potential customers that you’re good at it too. Take fitness trainers for example; by showcasing the way in which you’ve been able to help and make a difference in your clients lives, not only are you able to peak the interest of other potential clients who may be looking for the same assistance, but your credibility could motivate them to support and even refer your business too.
Thanking your customers for placing their trust in your company could also go a long way. Try offering a discount, exclusive perk, gift or rewards program - whatever you decide on, the key is to offer something that is of value to your clients that will very likely motivate them to spread a good word to others about their experience with you.
Overall, referral marketing works because it’s a direct and authentic way to get others to learn about your business, making it a highly effective way to generate new leads and build long-lasting relationships with your customers. And the first step couldn’t be simpler - all you need to do is give them a good enough reason to start advocating for you in the first place!
Team Sudor