The new year is almost here and it is time for all businesses to review their marketing strategies and plan for the future. If a business has a compelling product with customers who are passionate about their brand, a referral marketing strategy can help expand their customer base and promote healthy growth within the business.
When we talk about referral programs, we are referencing a defined process for rewarding existing customers for sharing product or service offers (on behalf of a company) with their social connections. One can think of this as a formalized word-of-mouth marketing strategy.
Referral programs are widely considered to be highly effective and authentic forms of marketing with a clear return on investment. This is for a few reasons:
The process for how referral marketing programs work is relatively straightforward. After establishing the program, a company can provide their existing customer base with an incentivized offer to share with their friends. Typically, once the offer has been claimed by the friend the referrer will then be provided with a reward of their own for delivering a new customer to the business. As more customers take part in the referral marketing program, the greater the potential is to reach new customers who could directly benefit from the products and services being offered.
This word-of-mouth process is not only beneficial for customer acquisition, but it also helps with improving customer loyalty through the bonuses received within the referral program. With this approach, businesses can avoid spending empty advertising dollars into campaigns that may or may not reach the right people. Instead, referral marketing allows their biggest brand advocates to share their passion for a product or service directly with people they know who would enjoy it or benefit from it.
Once the referral marketing program is up and running, it is important to optimize and improve the program as much as possible to encourage continued involvement. Here are 10 ways to improve a referral marketing strategy in 2021.
Taking a closer look at how well your referral marketing program is performing and what can be improved is essential to its long-term success. Even for programs that are thriving, ongoing tracking of performance and being open to making adjustments when needed can keep a referral program going strong. With Talkable, businesses can establish a referral program, customize it to their liking, optimize it as they go, and scale their eCommerce growth exponentially. For a free demo, contact us today.