The development of the digital world has changed the world in many ways than we can imagine. It has changed the way that customers buy a product, the way that they interact with one another or with brands and it has made the way to a new era of marketing. Referral marketing company helps in building social appearance and we all know social proof is one of the major reasons for marketing success.
What is Referral Marketing?
Like any form of marketing, referral marketing (also called word-of-mouth marketing) usually happens naturally or organically. It happens even if marketers get involved or not in the process.
To put in simple words, when you encourage customers to spread the word about your products, it is referral marketing.
How does it work?
It simply works by the basics of ‘word of mouth’. The main motive is to provide a happy satisfied customer a simple way to share the business with their friends and family. The customer informs their experience with friends about the business and this way the business gains new customers. A referral tracking system helps with automating many of these steps, like setting up default email messages with the business brand, one-click social media sharing and even reward fulfillment.
By nature, people want to help other people. Happy customers like to support businesses, just as good friends like helping each other. Do you see where we are going with this?
Many people, who get to know a small business (or any business for this matter) that really makes them happy, want to help the business to succeed.
Why does it work?
It’s a well-known fact that word of mouth is powerful & influencing. Referrals expand from word of mouth marketing which results in social selling. ‘Word of mouth’ is one of the big reasons for its achievements. Referral marketing strategies work & benefits because people are more likely to buy a product or services from the company referred by friends or family. This has been proven from time to time. A study by Nielsen found that people trust recommendation they get from friends or family over all other sources. That’s just one of the observations made in many studies that have successfully proven why this type of marketing is powerful.
Marketing can be complicated, time-taking and cost you more than your budget as well. As it turns out, a referral tracking system could be the solution to these marketing despairs. It takes your already gained customers as input and uses them to market your business.
Impact of referral marketing on the business
Referral marketing is like many other marketing channels, where it pays to pay attention to the user experience, but a referral system provides much more than just getting more customers.
1. Referral Marketing is Easy to Implement
The stages of setting up a referral program have been made more systematic and simpler with the help of referral marketing software. With the use of referral software, many eCommerce businesses are able to easily add a referral program to their site without worrying about coding or anything.
2. Instant Credibility & Trust
Before any customers will choose to do business with you, first they need to build trust in you. Which means you have to encourage them to like you in order to trust you and know you before they can like you? It’s just part of the marketing process.
People first get to know about you, and then become prospects once they show interest in you and customers once they start trusting you.
Referrals allow you to skip ahead steps. Prospects might not trust you, but they will trust another person’s word of you. That’s what a company or business needs.
3. Referral Marketing is Social Media Friendly
Many eCommerce sites prosper by social media and referral marketing fits right in on this experience as well. Since most referral software offers simple social sharing buttons, it makes it incredibly simple for online stores to automate and track referrals.
Referral marketing for eCommerce also builds social proof. When your customer’s social audiences see them sharing your business, they will feel more inclined to check out who you are. This simple action adds to your credibility.
4. Referrals Provide Cost-Effective Marketing
People like to brag about good experiences. Boasting about your products & services is an easy way to get your business out there by using word of mouth marketing – an essential component of referral marketing.
Businesses that hire a referral marketing company definitely obtain the benefits. Not only is it cheaper than traditional advertisements, but its reach is also pretty outstanding. Generally, customers refer their friends who they think will be interested in your company or more likely to buy your services or products. That means you don’t have to put forward the effort to find these people by yourself.
5. It Leads to Good Reviews
People share their reviews when a business makes them feel good in a certain way. Think about when you want to buy something & you research that product or business. People like to praise, and people like to share. This is one of the reasons people focus & read reviews before buying. Anyone will be keen to see the best and worst things about the business from where they are thinking to purchase products.
Referral marketing has a good positive impression on your customer’s emotional response towards your company.
Top Referral Marketing Company
- Branch Metrics
- Gagapay Network
There’s no doubt that referral marketing can be one of the best ways to grow & expand your business, but it can also be one of the hardest for business owners to understand.
Referral marketing campaigns have this ability to take your business to the next level, working as an engine that brings new customers directly to your door. It’s in your best interest as a small business owner, marketing, or customer engagement specialist to give it a try.