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It’s evident that in-person and online referrals can go a long way
toward driving new prospects to you. One of the most effective
ways to turn your past and present customers into brand
advocates is with a referral program. Here are a few ways to
get yours up and running:
Ask for a recommendation |
“When you have happy
customers, they want to help you be successful because now
they know, like and trust you,” Peden says. “Asking them for
referrals provides them the opportunity to support your success.”
Partner up to cross promote |
Think of businesses related
to – but not in competition with – your own. Run an automotive
collision repair shop? Arrange to promote a trusted mechanic,
muffler shop or tire center in exchange for their endorsements
of you.
Promise referrers a reward |
On your website and in other
communications, let customers know they’ll earn cash, gift cards
or similar incentives for any new business they send your way,
provided their friend or neighbor mentions the referrer’s name.
Encourage your social media fans to share |
Establish a
page on Facebook or other sites and encourage your customers
to become “fans” and your fans to “share” their endorsement of
you with their friends. (See sidebar for details.)
Start an automated online referral program |
Usually
offered on a monthly subscription basis, automated programs
integrate a custom website with branded emails and referral
incentives, and offer the added benefits of campaign
management and results tracking.
“Referral marketing or word-of-mouth advertising is marketing
at its most basic and most effective,” concludes Peden. Indeed,
two-thirds of all economic activity today is influenced by personal
recommendations
.2
n
Quick Tips to Promote Social Sharing
Word-of-mouth used to occur over the backyard
fence or around the water cooler. Today’s influentials
are gathered on social media sites and primed to share
their opinions – positive and negative – with a much
wider audience. Here’s how you can drive some of
the conversation:
• Make it a game.
Introducing a new product or
service? Encourage your social media fans to vote on
a colour or suggest a name by offering a prize. Then,
promise them an increased chance of winning with
the more friends who support their suggestion.
• Appeal to their altruism.
Craft a campaign
that promises to make a charitable donation as
an incentive for social media users to share. You’ll
increase your fans and elevate your brand image.
• Offer an exclusive.
Give fans who share something
special, such as a first chance at a product, service,
event or discount in return for them influencing
their friends.
• Incentivize influencers.
Track your fan
recommendations. Reward influencers with an
invitation to a launch party, a pre-sale opportunity
or other exclusive that acknowledges their
special status.
• Mobilize the masses.
Launch a program which
induces fans to share and achieve a group discount
or shared benefit. (Sign up five friends, and you’ll all
save $20!) With the right group incentive, everyone
wins – including you!
1
Nielsen Newswire,
Consumer Trust in Online, Social and Mobile Advertising Grows
, 2014
2
eMarketer Research Report, 2012
