Referral Marketing
There are more strategies and approaches to consider in the marketing sector than you can count, plus lots of strategic solutions positioned to address challenging pain points. Buyers today are bored of banner ads and pop-up adverts.
Tribe reports that nearly half of consumers think traditional ads are “annoying or irrelevant.”
Many consumers actively hide ads entirely with ad-blocking software because they see ads as too invasive. 30% of all consumers actively turn to adblockers to hide ads entirely, and almost two-thirds of 18- to 34-year-olds block ads.
According to Social Media Today, only 33% of consumers say they trust traditional ads.
People now want to listen to people they know and trust. This includes family, friends, peers, and coworkers. Referral programs are excellent marketing tools because of the importance and trust that people place in their peers. Referrals, whether offered online or in person, feel authentic and organic, resulting in tremendous outcomes for your business.
This is the Referral Marketing concept
Referral marketing is a method that encourages loyal customers and supporters to refer their friends and family to your company, increasing your customer retention. Customers not only seek out referrals, but they also act on them, according to studies. Referral marketing capitalizes on the organic, altruistic aspect of referrals by providing brands with the tools to reward and manage them at scale.
The goal of referral marketing is simply to harness the power of authentic word-of-mouth to drive a steady stream of high-quality referrals to your business (and grow revenue as a result).
According to Jay Baer, 92% of consumers trust user-generated content and word of mouth more than advertising.
According to insights report in 2015, more than 90% of consumers from various markets trust recommendations from people in their network.
According to Neilsen study in 2016, 82% of consumers proactively seek referrals from peers before deciding whether to purchase a product.
Then how to develop a referral marketing strategy
The first stage in every marketing strategy is to conduct research. When it comes to referral marketing, the first step is usually figuring out what customers want. Customers will not participate in the referral program if the incentives are worthless or unappealing to the company's existing customer base. Then, we consider the procedures for crediting referrals, the number of referrals required to qualify for the reward, and any other tools for verifying that the referrals occurred.
The next phase in a referral marketing strategy is to make the program widely known. Customers are invited to join the program through signs placed in actual stores, usually near the pay registers. Customers can carry brochures with them that provide information about the referral program and serve as a physical reminder of the program, which is a frequent method.
Both for physical and online businesses, internet marketing is a popular approach to spread the word about a referral marketing program. Email marketing campaigns, banner advertising, or even e-mail signatures with links to a referral program sign-up page can all be used to do this.
Launch a referral program on your store for free today!