In business, there are a variety of marketing strategies that can be employed to increase sales. One lesser-known strategy is referral marketing. Referred customers are more likely to buy than those who were not referred, so implementing a successful referral marketing campaign can increase your company’s profits. This post discusses what referral marketing is, how planning and executing it can increase sales and its benefits. We will also provide ten tips for creating a successful referral marketing campaign.
What is Referral Marketing?
Referral marketing is word-of-mouth marketing in which customers are encouraged to refer others to a company’s products or services. This can be done by giving discounts or other incentives to customers who make referrals or providing excellent customer service that leads to happy customers who tell their friends and family about your business.
Is Referral Marketing Effective?
Yes, referral marketing is stunningly effective. According to Harvard Business Review, businesses with a referral marketing plan can expect to see around 16% more profits from customers than other customers refer. If you don’t believe that, consider that e-commerce giant Shopify says that “word of mouth is their best form of advertising.”
How Planning and Executing Referral Marketing Can Increase Sales
Well-thought-out strategies for planning and executing referral marketing can help you increase sales by getting more people interested in your products or services. By understanding what referral marketing is and how it works, you can create a campaign that increases brand awareness, brings in new customers, and helps you boost profits.
Top Referral Marketing Sales Tips
Now that we’ve discussed what referral marketing is and how it can help you increase sales let’s take a look at ten tips for creating a successful referral marketing campaign.
Tip # 1: Make sure your Product or Service is Excellent
If you want customers to refer others to your business, you need to ensure that what you’re offering is worth referring to. This means providing excellent products or services that meet customer needs and exceed expectations. This should be a no-brainer, but it’s worth mentioning.
Tip # 2: Create Appealing Content
Your referral marketing campaign will only be as successful as the content you create for it. Be sure to design attractive visuals, come up with compelling copy and offer something that will appeal to your target audience. If you’re unsure what type of content will work best, consider conducting a survey or A/B testing different types of content to see what gets the most engagement.
Tip # 3: Use a Contact Picker
If you’re using referral software, take advantage of relevant tools like a contact picker. This allows your users to simply select contacts instead of typing them in, making sending and receiving referrals extremely easy.
Tip # 4: Elevate the UX
Your referral campaign’s user experience (UX) is just as important as the content you create. If people have a bad experience with your campaign, they will not want to share it with others. Make sure everything from the sign-up process to the sharing buttons is easy to use and works smoothly. You should also consider providing a custom URL for each person who signs up for your campaign.
Tip # 5: Leverage Social Media
Social media is a powerful tool to help you reach more people with your referral campaign. Use platforms like Twitter, Facebook, and Instagram to promote your campaign and get people talking about it. Be sure to use relevant hashtags and engaging post content and tag other users in your posts to get more engagement.
Tip # 6: Incentivize Your Referrers
Offering an incentive is a great way to get people to participate in your referral marketing campaign. Whether you offer a discount, a free product, or some other type of prize, choose something that will appeal to your target audience. You should also ensure that the incentive’s value is high enough to encourage people to participate in your campaign but not so high that it will eat into your profits.
Tip # 7: Implement Targeted Email Marketing
Email is a great way to reach people who may be interested in your referral marketing campaign. Use segmented lists to send targeted emails to different groups of people and personalize your messages with sender and recipient details to resonate with each audience. You can also use email to keep people updated on your campaign progress and announce new incentives or prizes.
Tip # 8: Ask for a Referral
The best way to get someone to refer your business is to simply ask them. Talk to satisfied customers and let them know you would appreciate a referral. You can also include a call-to-action in your email signature, website, or other marketing materials.
Tip # 9: Measure Your Results
It’s important to measure the results of your referral marketing campaign so you can see what’s working and what isn’t. Track the rate of participation and sharing, reach, and your referral marketing efforts generate impressions, conversion rates, and how much revenue. A contact picker does this all automatically for you. This will give you the information you need to adjust your campaign and ensure that it is as successful as possible.
Tip #10: Continuously Improve Your Referral Program
It’s important to keep in mind that your campaign should be continuously evolving. As your business grows, so should your referral marketing efforts. Keep track of your results and make changes to your campaign as needed to ensure it is always working to its fullest potential.
Does WordPress Use Referral Marketing Strategy?
WordPress does use a referral marketing strategy for its platform. For example, when you sign up for WordPress, you are given the option to share your referral link with friends. Every time someone clicks on your link and signs up for WordPress, you will receive credit toward a WordPress.com plan.
Referral marketing is a powerful tool that can help you increase sales and grow your business. By planning and executing your referral marketing campaign, you can ensure that it is successful and generates the desired results. Keep these tips in mind to create a campaign to get people talking about your business.
Jay Gibb is the owner of CloudSponge. CloudSponge helps e-commerce companies lower their acquisition cost and boost their sales. Our products will improve the performance of referral programs, invitation forms, contact importing workflows, and sharing features. We’ve helped thousands of companies in every industry get more referrals, send more invitations, create stronger social networks and distribute more content.