Reference marketing: Maximize your customer acquisition
In an ever-changing digital world, it is essential not to overlook the power of word-of-mouth to acquire new customers.
4 min
Productivity
Referral marketing remains an effective customer acquisition channel in an ever-changing digital world. However, many businesses take a passive approach, hoping that the quality of their work will naturally generate recommendations. Unfortunately, that doesn't happen often.
In fact, around 80% of satisfied customers say they are ready to give references, but only 30% do so because most customers are never asked to do so.
But how do you encourage customers to recommend you without making the process seem arrogant or awkward? We want to give you some simple tips that will help you create a sponsorship system that works.
Your first challenge is overcoming fear the discomfort or discomfort that this situation may cause. We often forget that most people enjoy helping others, especially if there are no negative costs or significant efforts required of them. Remember that the worst that can happen is for the customer to say no to you. You will agree that this is not insurmountable!
Our second piece of advice is to go digital. Digital reference programs are more effective than pen and paper systems. Going digital streamlines the entire process while providing personalized experiences for your customers.
We recommend using customizable templates, which can be used to request referrals at scale while providing a personalized customer experience. Your ideal platform will have customizable templates to take care of your brand voice and save time.
Invest in a software solution capable of automating recommendation requests to your customers. This way, you can get new references on your digital platform. You can set up triggered emails and texts that ask customers for a referral right after key interactions.
For example, it is possible to send reference requests automatically after a purchase, requests to give your business a Net Promoter Score (NPS) high or write a 5 star review. This way, you can effortlessly target your happy customers and develop your referral business on your digital platform.
The easier you make it for your customers, the more likely they are to accept your referral requests. Find software that makes it easy for your customers to recommend you to their friends via text, email, or social media like Facebook.
You may be offering great customer service, but sometimes that's still not enough to get referrals from your customers. We recommend that you offer a incentive program that includes gift cards, bill discounts for the next month, or even a donation to the charity of their choice. Send this incentive offer to some of your happiest customers and tell them that the first 10 to respond with a recommendation will get the prize. We guarantee you that you will be surprised at the speed at which these references suddenly come to the minds of your customers.
To increase your conversions, you need to proactively promote your referral program. Be sure to advertise this program on your website, emails, newsletters, and social media. Here are some effective ways to promote your program on the channels you already use:
Digital referral marketing is a powerful strategy for attracting new customers. By using the right tactics, such as actively requesting referrals, using customizable templates, automating the process, and offering attractive incentives, you can maximize the effectiveness of your referral program.
Why is referral marketing important?
The reason is simple - it works. According to a study conducted by the Sandler Sales Institute, referral marketing generates business 3 times out of 4. That's an impressive number in itself, but it's even more impressive compared to other forms of prospecting.
Remember to actively promote your program across all available channels to get the best results. Put these strategies in place and watch your business grow through the power of digital word-of-mouth.
