4 referral marketing pillars for booming word-of-mouth
Despite the development of new media, marketers are increasingly finding it difficult to reach their target demographic. We are constantly bombarded with marketing messages that are entirely unrelated to us as consumers. The lack of trust in mainstream advertising is a second major issue. According to recent Nielsen data, consumer trust in marketing has eroded over the last five years. These challenges can be overcome with a solid referral marketing plan.
According to Talk Triggers, 83% of Americans say that word-of-mouth recommendations from people they trust make them more likely to purchase a product or service.
According to Neilson, people are 4 times more likely to buy a product after a friend refers them.
So, what are the main pillars of an effective referral marketing strategy?
1. Referral incentives
Referral programs must provide customers with a compelling reason to recommend your products to their friends. Referral incentives, whether in the form of discounts, cash, credits, free products, or other incentives, are the most successful way to do so.
Two-sided incentives, which benefit both the individual who made the referral and the friend(s) with whom they shared it.
Cumulative incentives, which allow customers to earn credits, free products, or discounts for each person they recommend. Using dynamic displays, make it simple for clients to keep track of their incentives.
Store credits are the most cost-effective incentive. They retain money in your business and provide loyal consumers a cause to return and keep spreading the word increasing your word-of-mouth.
2. Simplify the sharing
Your visitors will spread the word to their friends faster if they understand what you want them to do and how to do it. Keep in mind that one of the main goals of referral programs is to make word-of-mouth marketing as simple as possible for everyone involved.
Allow clients to copy and paste a one-of-a-kind referral link without having to use a specific sharing method. People can then share it on their preferred social media account, email it, or SMS it with their own message.
Reduce the number of steps required to refer a friend as much as feasible.
Include a variety of sharing choices, such as email, social media, and text, so that all visitors can choose the one that is most convenient for them.
3. Social sharing
Social media is where much modern word-of-mouth marketing takes place. After all, it's the most convenient way to contact friends. As a result, it's only natural for individuals to share companies and items on social media, frequently with their whole online network at once.
Provide a prewritten message with a picture so that people can quickly and accurately share the referral offer. Because it will be shared by actual people, make sure the message sounds conversational rather than salesy.
Allow users to post a referral link instantaneously via Facebook, Twitter, and other major social media platforms (along with an email sharing option). Choose these channels based on how much time your target audience spends on them.
Make sure your referral program is compatible with mobile devices. Many people use mobile devices for social media sharing, as well as shopping and purchasing services. If you have a brand app, make the referral program easy to find by integrating it.
4. Target loyal customers
Customers should love your business enough to share it before they spread positive comments about your company. Existing clients are usually the finest referrals because they can speak from personal experience.
Consider making referral banners and pop-ups more prominent for returning site users or incorporating information about your referral program in your customer emails.
Customers that learn about your company and its mission and then share a post on social media will be rewarded. This is a particularly useful method if you're just getting your business off the ground and want to identify clients who are enthusiastic enough about your products to spread the word.
Existing clients who are happy with your service present a powerful testimonial to others about why they should buy from you. As a result, existing customers must have a particularly easy time finding your referral program.