A growing body of research suggests that offering rewards for referral marketing can boost customer loyalty and even increase sales. It’s time to re-evaluate how you approach referral marketing in your business.
The reason why it’s important to develop relationships with other businesses is that most people these days buy online or through mobile devices, and don’t go into a store to purchase something.
This means they don’t have face-to-face interactions with sellers who could be helpful later. By adding “refer a friend” programs to your site, you are creating an opportunity for someone else to make money by recommending you as a seller.
There are several ways to do this, but one of the best is using special discounts for purchases. This article will talk more about some examples of this and what types of companies use them.
What are we talking about?
We’ll discuss two different types of reward program drops – coupon codes and direct affiliate links. Both can benefit your business in different ways!
Coupon codes are short terms (usually 1 week long) discounts that you offer for certain products or services. For example, if you find a great pair of shoes, you can create a discount code for the same style of shoe at a similar price.
People looking to save money can easily grab those coupons before buying otherwise, which helps promote engagement with your product/service.
Why is referral marketing important?
Now, this isn’t to say that direct sales are bad! They can be very effective when done right. But most people who “succeed” in direct selling make almost all of their money from personal recruiting rather than through referrals.
The reason for this is simple- those working in direct sales don’t refer others to join them (or pay attention to whether or not they are being referred)
As we have discussed before, indirect relationships are much more powerful than direct ones because they create an internal motivation to do things for other people – even if you aren’t directly compensated for it.
This article will talk about some ways to implement referral marketing into your business, but first, let me give you my opinion on why it is so important.
Why Is Referral Marketing Important?
Referral marketing doesn’t just help you get new customers, it helps keep current customers loyal to your brand. This makes sense, doesn’t it? If someone else vouches for your product/service then it increases our trust in you as a seller.
It also gives them the incentive to continue doing business with you since they got good value by buying from you last time. And what better way to retain customer loyalty than by offering something back to them?
That something could be a discount, reward points, or both.
Ways to implement a referral marketing
A refer-a-friend program is one of the most powerful ways to increase sales for your business. It can be done through social media, online communities, or even in-store events.
By offering a reward for someone who recommends your product or service to their friends, you create an incentive for them to talk about you.
This means two things; it helps promote your brand and creates new opportunities for sales – they may get inspired to buy after seeing your products on us!
For example, if you’re looking to launch your own YouTube channel, then offering a free monthly subscription to YouTube Clips would be the perfect way to gain referrals. You could also offer discounts on other products or services as rewards.
Running a refer-a-friend program isn’t just limited to selling products though. If you’re looking to expand your client base, offering a discount to people that use another company’s software tool can reap huge benefits.
Finding out which tools are needed for their job and giving them away for less makes your competitor’s products seem expensive, thus creating a motivation to switch.
Offering a referral program
As mentioned before, offering a reward or incentive for business is an old trick to help others succeed. It’s been used in many contexts – from referral marketing and customer loyalty schemes at large corporations to internal rewards programs at companies.
But what if we took it one step further? What if we designed our own internal rewards system to create word-of-mouth marketing?
That’s just what some brands have done. They’ve created a way to incentivize their employees to refer customers to their store, website, or both.
These referrals don’t need to be for products or services that are directly related to the business — they can be for anything! (Think about it: How often has someone told you how much they love a restaurant’s dessert but didn’t go because there weren’t any left? I bet you’ll make an exception this time.)
It works by motivating your colleagues through incentives such as gift cards, merchandise, or even money. By adding perks to the arsenal, you’re making sure that they’re not only rooting for you but also helping promote your company.
Encouraging referral marketing and customer loyalty
As mentioned before, referral marketing is just as much about encouraging people to refer you as it is about giving them incentives to do so. If you want to see repeat business, if you want people to keep sharing your services with others, then you need to give them something in return for that effort.
What most companies don’t realize is that when they ask their customers to “recommend us to a friend or colleague,” what they’re asking for isn’t just an “I’ll buy more things from you” endorsement. What they’re requesting is someone’s time — someone who will spend several minutes writing up a positive review of your service.
This can be tricky for some, though. While most people would agree that testimonials are helpful, many feel that paid reviews aren’t worth very much. After all, why should anyone read through all those words unless they were being compensated for it?
That argument makes sense, but there are ways to avoid this problem. For example, you could always write your review! A lot of sites let you create a profile where you can describe yourself and talk about your experiences using their products and services. Some even have you pick your reward level which helps mitigate any potential bias.
Another option is to invite friends to become registered users and gain access to less advanced features than you normally offer, but which you still like enough to promote.
Creating a website
Websites are an integral part of most people’s daily lives. Whether it be for work, personal reasons, or both, we as humans need to have somewhere to go to do our thing.
Websites give you this place. They provide a space where you can create, connect with others, and grow your business or career.
It is not uncommon to find yourself looking at sites that look similar in style, content, and functionality. So what makes one site stand out from another?
A unique brand gives off positive messages about who you are as a person and company. Your audience will be able to tell when a company does not put effort into creating its product or service.
By having a unique style, theme, and personality, you allow your viewers to relate more to you. You also let them know that you take your job seriously by putting in time and energy to develop what you offer.
There are many ways to achieve a unique design including through color scheme, typography, and layout. Finding inspiration from similarly themed websites and incorporating some of those features onto your site can help you get started.
Another way to add depth to your site is by adding different sections or components. A component is something like a slider, chat box, or other interactive element used to showcase your services or products.
Having these additions adds a new texture to your site and helps promote engagement.
Offering a coupon code to increase referral marketing and customer loyalty
As mentioned earlier, offering a discount or reward to draw in new business is called referral marketing. And while it seems simple enough, there are some tricky nuances that most people get wrong.
Making rewards for referrals can be done very poorly. If your competition doesn’t have much traffic, then why would you want to make them more popular? By giving a small prize away to just their loyal customers, you will lose potential conversions.
The best way to do this is by targeting non-conversion events. For example, if someone visits a website but does not buy anything, offer them an extra 10% off as a thank you for being guests. This is similar to getting frequent flyers – they don’t always purchase flights, so give them extra value for having visited!
Another mistake that some marketers make with referral bonuses is making them too expensive or time-consuming to use. What incentive would anyone have when you pay nothing for the product or service?
A good referral bonus should be easy to access and cost no money to use.
Offering a reward to increase referral marketing and customer loyalty
A few years ago, I was talking to my friend about how we could do something fun with our lives. He mentioned that he wanted to take up skydiving. I laughed because although he is very adventurous, he has never done it before!
He asked me what kind of things I enjoyed doing and I told him about some of the sports that I loved like running and swimming. Then I said something that made him laugh so hard he cried – I don’t know why but I always refer to myself as an overgrown kid in terms of hobbies.
I love to read and learn new things so when I find a book or topic that grabs my attention, I will go out and buy any related materials I can get my hands on. That includes listening to audiobooks and buying CDs or books to help me retain what I have already learned.
It is not just because I am a big nerd who loves to spend money on gadgets and games (though there are those too!), It is because I want to grow and learn more about whatever I invest my time in.
That is why I got this smartphone you are reading this article on! I enjoy investing in products and services that help me learn and grow so I can be better at everything I choose to pursue.
If someone else has invested in me by giving me a chance to explore their area of expertise, then they must also want to see me succeed and keep coming back for more.
Encouraging customers to tell their friends
A growing number of businesses these days rely heavily on referral marketing to thrive. It’s an effective way to increase exposure, grow your business, and generate new revenue streams.
By asking your current customers to spread the word about you for a fee, or even offering them a discount as return gratitude, you can gain additional eyeballs for your services.
This is especially true if they mention you by name or include your brand in the message. While most people enjoy doing good deeds, very few take action to make others aware of who they are. Asking actively encourages this behavior.
It also creates a sense of community, which is always a nice thing to behold. Your colleagues will talk about you, which builds your image even more.
Referral programs have become increasingly popular due to their effectiveness. However, not every company gets the most out of them.