4 tips for implementing referral marketing in your business

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Referral marketing is a strategy to generate sales from your current customers. The company uses its active customer base to generate new business opportunities from those who buy from and trust the brand.

After all, there’s no one better to promote your products than those who like them enough to buy them more than once, right? In this post, we’ll show you the 4 steps to implementing referral marketing in your business . Check it out!

1. Find out where the brand advocates are
Do you know who your loyal customers are, your brand advocates? Those who buy regularly and trust your products? If the answer is no, now is a good time to map these people and get better results.

Technologies such as Customer Relationship Management (CRM) and bahrain number dataset management software gather this information. Likewise, tools such as Big Data are capable of tracking the company's digital history to find patterns.

Salespeople who are in direct contact with customers will also know how to recommend loyal customers. Another way is to use the metric known as NPS, the Net Promoter Score, which measures consumer satisfaction.

You may have already come across the question “On a scale of 0 to 10, how likely are you to recommend our company”, right?

This is the question that measures NPS . This method is simple, but since the metric is easy to analyze, you can map out who gave high scores in this test — and go after them to develop your referral program.

2. Create a referral program
The first step in developing a program is to choose the parameters. Some questions that can help at this point:

What will the rules be?
When does the customer win something?
Does he earn just by referring your business?
Or does he earn when the referred person closes the purchase?
3. Define the rewards
The second is the choice of reward, which must be very well thought out to attract customers with the potential for loyalty — and not just those who are looking for any promotion.

You will need to define a benefit for both the person you refer and the person you refer. Think of something that is relevant to your business and that encompasses the interests of your target audience . For example, a company that sells clothing might offer some coveted clothing items.

A company that sells computer parts might offer something that is on the radar of its target audience, such as a year’s subscription to the new Windows. Make sure the reward isn’t random, as it needs to be attractive to generate referrals.

4. Choose communication channels
The last step is to use all of your company’s available communication channels to boost the results of your referral marketing strategy, such as WhatsApp, email, and social media. Be sure to read our post on omnichannel marketing to better understand this step.

To measure results, it is important to record the number of customers acquired with this strategy. In addition, take care of the purchasing journey with the referred consumers so that they also become brand promoters in the near future.

As we saw in the article, referral marketing is a strategy that takes into account the company's own customer base. Thus, not only does the company benefit, but also the loyal customer and the new consumer acquired, who have the chance to win attractive rewards.