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6 Key Benefits Of Getting Referrals The Right Way
Okay, Let’s talk about referrals for small businesses.
We’re influenced by recommendations, reviews, testimonials and most importantly, referrals.
Formulating the perfect sales tactic with the highest ROI is never easy. Choosing from the diverse number of marketing strategy options available can be overwhelming as well.
Fortunately, you can make things less complicated by opting for a particular method – referrals.
Aside from the fact that it requires little to no investment, referral sales bring in valuable leads.
For those who are still unconvinced that a referrals program is a must-have for your business, this article will give you an insight into its numerous benefits.
What Is a Referrals Program?
A referrals program encourages your customers to spread the word about your business through rewards.
However, satisfying your customers with excellent customer service is a definite requirement for them to refer your products or services.
Utilizing referral marketing is ideal for business owners who desire to boost their profits while still keeping costs low.
Make The Process Hassle-Free
You are likely already occupied in running your business. If you worry that you won’t be able to run a referral program on top of everything, managing things would be hassle-free with the help of referral marketing software.
Implementing one for your business would allow you to save time for other responsibilities.
Almost all referral software variants come with an easy-to-use dashboard, which lets you conduct quick adjustments when necessary.
The dashboard also shows how many customers viewed/signed up for your program, the number of referrals created, and many more.
When you give a referral, the people on both sides should feel like they are being treated with respect – like V.I.P.s the very important persons that they are.
… This is when you allow someone to use your name “talk to this person, use my name” with the other side not having been set up expecting something.
Now this is an awesome strategy for new as well as seasoned small businesses.
Why?
Because marketing your business isn’t always about direct selling, but it is always about compelling people to take action. By just getting a client to mention your business is a plus!
Here are just some of the many benefits of implementing a referral marketing program.
- Positive First Impression
Asking your client to refer you to others gives him/her the impression that your company works closely with its customers.
Most of the time, the thought of a good business-to-customer relationship will make your client excited about doing business with you. Achieving this also means that the chances of closing the sale would be much higher.
2. Client Base Expansion
While some marketing options come with restrictions, this is usually not the case when it comes to referral marketing.
Letting your customers serve as your advocates is one of the best ways to expand your client base.
Considering that people within the business industry have a diverse circle of friends, you can expect good results from this strategy.
3. Higher Lifetime Value
As mentioned earlier, referred customers already have a positive impression of your company. The great customer experience shared by their peers is enough to make them trust your credibility.
According to statistics, customers referred by colleagues have a lifetime value that is roughly 25% higher compared to other customers.
4. Cost-Effectiveness
Giving out gifts and discounts will use a small portion of your company’s resources.
The long term benefits, though, make referral marketing worth the shot.
Marketing through referrals is cost-effective because it is cheaper compared to other tactics such as paid online advertising.
For business owners who want to save even more, you can enforce a loyalty rewards program, which will reward your customers with points instead of gifts/discounts.
5. Stronger Online Presence
Having your clients refer your products and services to others leads to increased overall engagement and potential revenue.
A referrer will also likely visit your website frequently to claim rewards, discuss with other customers, and more.
With a stronger online presence, it is safe to say that there will be a higher number of purchases.
6. Improved Brand Reputation
The potential of referral marketing is not limited to expanding your client base.
With its help, prospective customers would also know what your brand is all about, improving your overall reputation.
The majority of customers want to work with businesses that possess a strong voice and a positive influence. Telling your brand story through referrers would resonate more strongly in the general market.
Why Referrals Work
In summary, referrals work simply because people prefer recommended products or services twice as likely compared to the others.
Not only that, but this marketing tactic has helped countless organizations, ranging from startups to established brands.
To put the icing on the cake, marketing through referrals is more effective and affordable than the other marketing options since all you need is to provide excellent customer service.
Using this marketing strategy the right way will surely maximize your brand’s exposure and growth.
