Having an employee referral program is one of the most powerful ways to boost morale, motivate employees, and generate new business for your company.
When someone you know goes beyond the call of duty to promote your product or service, that’s what gives you credibility as a leader. They are telling others about you!
It’s hard to remember all of the people you work with, so having a system where they can reward those who do good things makes sense. And when they feel like their efforts truly matter to you, their effort will keep up the momentum.
Here’s something else about referrals: other people trust them.
People refer friends and family members who have done things in the past that show they can be trusted. It creates an atmosphere where everyone feels safe and able to succeed because they believe in each other.
And since we’re talking about motivation here, this also boosts worker productivity and engagement. People enjoy coming to work when they feel appreciated and needed.
This article will go into more detail about why having a referral program is important, and some easy ways to start one that exists here. So take some time to read it and see what inspires you.
Customers are more likely to try new products, that’s why you need a referral program
When you have an online store, one of the first things people will do is check out your competitors’ sites or stores. By having lots of referrals, they can find helpful information about your business and whether it is worth investing in or not.
By creating a referral program, you give their friends and colleagues free access to some of your services or goods. This helps promote your brand and grows your audience!
Most importantly, research shows that when someone you know buys something, she/he is 7 times more likely to buy something from another source.
So by offering referrals for your service or product, you are helping others succeed as well as supporting your success.
Customers are more likely to buy more products, that’s why you need a referral program
As mentioned before, referral programs incentivize your colleagues to bring in new business. Your colleagues get credit for bringing in the business, and you receive an incentive to keep them happy!
By creating a reward or giveaway for their efforts, you’re giving them a reason to help you promote your product or service. This helps create momentum towards promoting you and helping you stay top-of-mind with your audience – which is what you want at this stage.
Referring others to your services/product will always be helpful, so why not give them some rewards? Or at least let them know how much they mean to you and what good they do for you and your career.
Your colleagues are worth something to you, and if you don’t believe that then there’s no use having one. It would be like paying someone to do something for you because you think it’s important but never offering them any money for their effort.
Customers are more likely to tell their friends about the brand
When having an interactive referral program, you help your business in several ways. First, people will refer your business to other individuals which can boost your company’s exposure quickly.
Second, word-of-mouth is one of the most powerful marketing tools out there. People that know others who love what your product or service offers will spread positive information about it.
Third, having a referral program means getting new customers directly! By offering rewards for referrals, potential buyers are naturally going to share the details of what works and what doesn’t work with you.
The last reason why having a referral program is important is because it creates loyalty for your business. Once someone finds success through your services, they will return time after time.
This kind of repeat business is very valuable since it comes with large profits.
Customers are more likely to pay more for products, that’s why you need a referral program
When you have an online store, you need people to visit your site and buy something! As mentioned before, word-of-mouth is one of the most powerful marketing tools out there, but only if you use it correctly.
Some tips about referrals: Ask your friends, family, and colleagues to be your referral “customers” or “testers” for your product or service.
This is easier said than done though, as most people are not very good at recommending things.
You can try holding raffles and giveaways where they can win discounts or even money off their next purchase!
Alternatively, you can offer them rewards such as free samples or t-shirts if they invite their friend to shop with you.
Customers are more likely to become repeat customers
When you ask your current customers to tell their friends and colleagues about you, they will! They expect it. And when they do, they increase exposure for your business and increase customer base growth.
Many entrepreneurs begin limiting referrals after the first few months of opening up their businesses. They believe that people know enough about them by now and so they stop asking for references.
But this is never a good time to slacken off referral requests!
By asking for references at every opportunity, you’ll keep giving opportunities to refer your service or product to others. Even if your friend has no idea what to say beyond “my favorite coffee shop,” they’re still referring you!
This isn’t only helpful in generating new leads, but it also boosts existing client loyalty.
Once someone feels like they have used your services and products with success, they will feel comfortable telling other people how well you work. Your reputation as an expert grows, and word spreads quickly.
Customers are more likely to recommend the brand to others
As mentioned before, referral rewards can be quite powerful. When someone you know buys something, they will almost always tell their friends about it.
This is because we all have at least one friend that loves the product or business so much that they talk about it constantly. It may even inspire them to buy themselves!
By having a refer-a-friend program, your company can tap into this power. By way of reward, you can give these referrals special discounts or credit for the purchase.
This helps strengthen the bond between you and the referred person and can eventually lead to more sales for your company.
Strategically placing referral programs across your social media accounts is another way to boost engagement. For example, if there’s a new movie coming out, you could incentivize people to watch it by offering free merchandise or tickets.
Customers are less likely to complain, that’s why you need a referral program
When a customer is looking to make a purchase, they will research online whether or not you’re a trustworthy seller before buying from you.
By having a referral program, this process gets shortened– people can refer your business and get credit for it! This incentivizes them to work hard to promote your product or service.
Their experience as a user of your product or service gives them the credibility to recommend you to others. There are even rewards programs where you earn points towards merchandise by referring customers.
Customers are more likely to buy future products
As mentioned before, referral programs reward your colleagues for their purchases by offering them discounts or credits toward future purchases. This is very effective in creating a shopping environment where buying is easy and quick because you know there will be rewards waiting for you!
Furthermore, research shows that when someone you know buys something, it can increase your sales of the product – subconsciously signaling that the product is good and worthy of purchase.
Referring members of your team who have already bought from us gives our company confidence in your recommendation which can only help us. It also creates an opportunity to do business with those people, as they’ll share our product or website information with their friends.
By having these opportunities, we’re able to spread the word about our products among new audiences while also strengthening relationships with current customers.