Did you know that customers of any particular business have more power than the brand’s voice? Different studies have shown that 85 percent of consumers purchase products through referrals from their friends and family. A referral program is the marketing maneuver that brands use to urge their customers to advocate on their behalf, the goal being to draw new customers and increase sales. Below is a list of valuable hints that your business can use to create an effective referral program.
Know Your Customers
Creating a successful referral program calls for you to comprehend your existing customers’ needs and behaviors. Analyze your sales data to understand what your existing customers appreciate most about your business and to know who your business’s diehards are. Through the information obtained, you can now create a referral program that revolves around customers’ wants. If they are your best customers and the referral program is suitable for them, rest assured they will share your brand with their friends and colleagues.
Set Your Goals
It is essential to lay out a plan on what you want to achieve with a customer referral program before creating the program. Is your goal to increase customers’ number, enhance customer allegiance, or convert more customers into long-time customers? Setting these goals helps you to assess the progress of your program. Additionally, setting goals will help you fine-tune some aspects of your program to ensure that the program remains effective.
Create a Reward Program for Referrals
Some customers refer your products to their friends willingly. However, this is not always the case. Some need incentives to do so. In this case, create a customer referral program that offers incentives to entice your customers to market your products for you through referrals. The incentive could be giving customers cash rewards, a good example being the octopus energy referral program. Another incentive that you could offer is extending discounts on your products. To increase the customers’ participation rate in your referral program, make sure the reward you offer is of interest and attractive to the consumers.
Promote Your Program
Setting up the customer referral program is not enough. Spread the word about the referral program on various pertinent channels. Use your business’s website, social media platforms, and physical base to promote the program. If possible, budget for media posts to increase awareness of your program. The more your customers are aware of the referral program your business has created, the higher the chances of them doing the referrals.
Partner with Other Businesses
You must engage other like-minded business owners to create an effective customer referral network. Many related businesses share similar goals and face similar challenges. Team up with businesses that have corresponding customer profiles. This technique will allow both businesses to tap into each other’s existing networks and benefit from them accordingly. Make sure the other business’ reputation is as good as yours so that your customers receive the same kind of satisfaction that you offer.
Referrals are one of the most effective marketing strategies in business history. Referrals result in significant results, yet the financial leverage is relatively low. Octopus Energy Referral program is one successful program to compare with.