What is it about?
Referral marketing consists of making customers become promoters of your brand to attract new customers. That is to say, to take advantage of the recommendations of the customers you already have to get new customers. They help you advertise your products or services to achieve greater visibility and, therefore, your sales in exchange for giving them certain benefits.
Nielsen (a world leader in audience information, data, and analysis) conducted a study that showed that 92% of shoppers trust the recommendations of family, friends, and even the opinions of other shoppers, especially when shopping online. In addition, consumers are more likely to purchase products recommended by real, everyday people.
What is the process like?
The process is simple, it consists of a customer recommending products or services of a business to other people in order to attract new customers and in return is rewarded by the business. The reward can be a discount on your next purchase, free shipping on your products, or any other exclusive benefit that can be offered to you. It is important to keep in mind that the more attractive the benefit, the greater the customer commitment.
To improve the referral strategy, it is also important to provide a benefit to those who receive the recommendation, i.e. new customers. Therefore, a discount is offered to the customer who recommends the product as well as to the friend or relative who makes his or her first purchase.
What benefits does referral marketing bring to your business?
Apart from attracting new customers more easily and in a more affordable way, referral marketing brings other benefits, such as:
- To increase loyalty.
- To increase your brand awareness.
- To increase traffic to your store (either physical or online).
- To gain the trust of new customers.
How do you get the right customers?
- Search your database for customers who have purchased at least once from your online store and leave a 5 out of 5 star rating.
- Search for suitable customers through your customer service. It is likely that there are customers whose experience with your business in the beginning was not very good; however, by providing them with good customer service they have changed their minds, and they can also become good promoters.
- Check your business’ social networks to see who likes, comments, and shares your posts frequently.
If you would like to learn more about marketing, the International Iberoamerican University (UNIB), in Puerto Rico, offers the Master in Strategic Management with a Specialization in Management
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