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Referral Marketing Tips and Tactics

Referral marketing is one of the absolute best, and potentially easiest, ways to utilize the power of word of mouth marketing. It’s a win win situation because in order to receive referrals you need to provide:
• A stellar product or service
• A unique product or service unlike any other
• A reward that is worth working for

Assuming you already have a stellar product or service or a product or service that is entirely unique the next step is to create a reward that is worth working for and to communicate your referral program to your customers.

For example, many sweepstakes will give you an additional entry into their sweepstakes if you refer a friend. The reward is another chance at winning and it is expertly communicated once you submit your online entry via a popup box.

A service based business may offer customers a coupon or a percentage off their next purchase in exchange for a referral. Money is a powerful motivator and if customers are truly satisfied with your service they’ll be more than happy to spread the word about your business. The extra cash is merely a reminder or an incentive. Communicating the program is the biggest hurdle.

Some communication options include direct mail. Send current customers a postcard coupon and a coupon for a friend. Another option is to ask current customers to give the postcard to a friend and they’ll get credit if their friend uses the coupon. Email can be utilized in much the same way. Tell email recipients that if they forward the email and refer a friend, they get credit for the referral.

Another option is a follow-up program via telephone. This can be quite effective if you have a small customer base and a high end product or service.

Lastly, don’t be afraid to ask for referrals. In fact, this is quite often the best way to get them. When communicating with your customers simply ask, “would you know someone who could benefit from my products or services?” The answer will either be yes, no, or not right now but I’ll think about it and let you know. Regardless, you have them thinking about talking about your business and that’s the first step.

Referral marketing begins and ends by providing a superior product or service and it ends with communicating with your customers. When they walk away happy, they’re generally more than happy to spread the word. Having a structured referral campaign makes it easier for you to motivate customers to talk about your business and it makes it easier for you to follow up on and track. It doesn’t have to be a complicated spreadsheet and tracking system, a simple conversation will often do the trick. Take a look at your business. How might you employ a basic referral marketing campaign to earn more new customers?
 

 

 

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