Should You Be Doing Referral Marketing?
Many corporations are looking toward affiliate marketing as the future of business, which means there is a window of opportunity for you to consider using referral marketing as a means of driving new customers toward you. Both affiliate marketing and referral marketing have the ability to increase your revenues, develop new revenue streams, and give you an incredible return on your investment into the internet. What referral marketing does is take that extra step above an affiliate marketing plan and actually develop relationships with people.
60% of Referral Marketing Leads Close Successfully
There is a 50% positive difference in the amount of leads that close from referral marketing. That’s because in referral marketing, your business is benefiting from an ever-growing cycle of customers that are being referred to you from satisfied customers. From social media to word of mouth, satisfied customers help to bring you more people who are looking for a guaranteed value. In return for these referrals, you might offer a customer specific discounts, cash payments, free merchandise, or other premium opportunities. This allows you to grow wealth and provide those who are referring customers to you the opportunity to have an increased value in their lives.
Are You Using Non-Cash Incentives?
If you’re already using a referral marketing approach, are you offering non-cash incentives to people? Though many people believe a nice check in the mail is what people want, there is over 20% more growth in referral marketing programs that offer incentives that aren’t related to cash. It could be specific products, investment opportunities within your company, or even an employment opportunity that you offer in your program. What matters is that people tend to be more attractive to physical rewards instead of cash rewards.
Referred Customers Have Better Lasting Value
Maybe the best reason to consider using a referral marketing program is the overall value you get in each customer. Over their lifetime, a referred customer has a 16% increased value over a customer received from an affiliate program. That doesn’t seem like much, but on a sale of $100, that means $16 more in profits. Expand that concept out to 100 customers and you’ve made an extra $1,600! That’s where you begin to see the value in this marketing concept: when you can get repeat customers and new customers on a daily basis.
Are You Ready To Begin a Referral Marketing Program?
With the right rewards, your current customer base is a great place to begin a trial of a referral marketing program. More than 80% of satisfied customers are likely going to recommend your company to their family and friends anyway. Why not give them an incentive to become a brand ambassador for you and share your business on their social networks? The right program with the right rewards and just a few good ambassadors could help your business grow exponentially in no time at all. Are you ready to give referral marketing a try today?