Referral marketing has been around for as long as business and to this day, remains a highly effective form of customer acquisition. However, with today’s many other marketing options that are readily available, many people tend to feel a bit skeptic about traditional referral marketing. In reality, referral marketing has seen many changes since word-of-mouth began and today, a smooth running campaign can fetch loyal subscribers along with recurring sales.
A referral program has unlimited reach
While a program will initially take some time and efforts to gather steam, your reach will continue to grow with each new referral. With powerful referral sources and referrals from your existing clients, the network will continue to grow bigger with no foreseeable end.
Referrals are more trusted than other forms of marketing
Referral campaigns, even those that are based on incentives, tend to be more trusted by consumers. When you refer a friend to try out a business, service or product, they will most likely be trusted as the information is coming from a well-known and trusted source. Of course, people are not keen on taking a risk by promoting a sub-standard business to their own family and friends.
Referral marketing has a lower level of competition
Unlike other forms of marketing where businesses have to try and outshine their competition especially on the social media platforms, referral marketing methods do not have to worry about having their limelight stolen. In addition, to put things simply, strong business relationships cannot be duplicated or out-shined.
Referral marketing is cheaper than most other forms of marketing
If you invest in a referral marketing system or an email marketing campaign, you will see that the costs are considerably lower in comparison to other advertising forms. Even an incentive based program (rewards program) won’t cost nearly as much as traditional advertising methods.
Referral programs promote long-term loyalty
If you present a happy customer with an incentive to refer your business to a friend, you are gaining a happy referrer who won’t hesitate to try and push more customers your way. This is a great way to make sure that your clients stay with you for the long term as your customers and as your brand ambassadors.
The most significant investment you will have to make with your referral campaign is your time. By spending some time to create your campaign, you will see exponential returns along with the aforementioned benefits that can help your business grow. With a tool such as IncentivIt, you can tap into your satisfied clients by giving them just the right boost to start spreading the word about your business.