[This article was first published in May 2016 and has been updated, revised, and expanded.]
There are likely no other proven ways to create prospects that are favorable to your brand and ready to buy than through referrals. Even on the Internet.
When someone we trust recommends a product or service that we need, our natural tendency is to give that referral our first consideration. That's the innate power of referrals.
We've all been there.
A friend calls us up or we're in a conversation at work, and the topic of good restaurants or must-see movies comes up. You ask for a recommendation and your trusted friend or co-worker gives you an enthusiastic referral.
Now if you're like most people, you're already strongly inclined to anticipate a good meal or a memorable film. Your expectations have been set and you are, quite likely, already "sold" on your friend's recommendation.
That is the power and magic of referrals. Often known as recommendations or word-of-mouth, a referral - formal or casual - packs a punch when it comes to lead generation.
Have you ever seen those statistics on how much it costs to gain a new customer or client? The actual cost is going to vary all over the business universe, and the marketing and lead-generation strategies used will determine much of the actual cost. But the point is that it costs something to gain a customer.
According to data compiled by First Page Sage,
Getting new customers costs money. Sometimes lots of money. Unless they come to you through a referral.
One of the greatest democratizing changes in the world of marketing has been the Internet. Because so much of what is accessible to business owners - and prospective customers - is essentially free, the costs involved in Internet marketing can be nominal.
In other words, "affordable."
Affordable Internet marketing is certainly a relative concept for business owners. Aside from what can be done online for free, marketing on the Internet is no longer "cheap and easy" for many businesses.
Owners of smaller businesses would like to think that it really can be affordable, but they've also been disappointed too many times to really believe that it's possible any longer. And if it is too "affordable" then they run the risk of having cheap and ineffective tactics sucking up their limited time and resources.
The good news is that, yes, Internet marketing can be affordable and the better news is that combining the power of the Internet and social media with the value of qualified referrals is a winning combination.
John Jantsch notes in the introduction to his book The Referral Engine:
There was a time when marketers would simply create a product or brand, broadcast a compelling message, and send the sales folks out to hunt down new business. Over the past few years, in large part due to the explosion of online tools and networks, customers and prospects are now active participants in the creation of products, services, brands, positioning, messages, and subsequent buzz—for good or bad.
He goes on to describe the process - the set of systems - he recommends for creating an effective program for eliciting referrals consistently.
The power of traditional advertising and elaborate marketing campaigns is on the decline and word-of-mouth referrals are what drive business today. People trust the recommendation of a friend, family member, colleague, or even stranger with similar tastes over anything thrust at them by a faceless ad agency.
The reach and ubiquitousness of the Internet and social media make "word-of-mouth" referrals far more common.
Yet, most business owners believe that having customers refer them is entirely out of their hands. But science shows that people can’t help recommending products and services to their friends—it’s an instinct wired deep in the brain.
And smart businesses can tap into that hardwired desire.
In today's digital landscape, competition for online attention is fierce. Paid advertising costs are on the rise, and organic reach on social media platforms is declining. For small and medium-sized businesses (SMBs), securing a foothold in the digital marketplace can feel like a daunting task.
But what if there was a way to leverage the power of the internet to attract new customers without breaking the bank? Enter referral marketing – a cost-effective and highly effective strategy that utilizes the trust and advocacy of your existing customer base.
As we've noted already, people are more likely to trust recommendations from friends, family, and peers than traditional advertising. According to Nielsen, recommendations from people we know are trusted 92 percent of the time, far exceeding endorsements from celebrities or online advertising. Referral marketing taps into this inherent human behavior, transforming satisfied customers into brand champions who spread the word about your business organically.
There are numerous advantages to incorporating referral programs into your overall digital marketing strategy. Here are some key benefits:
Designing a referral program that resonates with your audience and drives results requires careful consideration. Here are some key steps to follow:
While incentives are important for initial program adoption, sustainable referral marketing goes beyond simply offering discounts. Here are additional strategies to cultivate a customer base that naturally advocates for your brand:
Referral programs aren't standalone strategies. They work best when integrated seamlessly with your overall digital marketing strategy. Here are some ways to achieve this:
Several companies have implemented successful referral programs that showcase the power of this strategy. Here are a few inspiring examples:
Referral marketing offers a powerful and cost-effective way for businesses of all sizes to leverage the power of the Internet to attract new customers and grow their bottom line. By building a strong brand identity, delivering exceptional customer service, and fostering a community of loyal advocates, you can unlock the true potential of referral marketing and achieve sustainable online growth.
At BroadVision Marketing, we can help you design and implement a referral program that aligns with your unique business goals and target audience. Contact us today to learn more about how we can help you turn your satisfied customers into brand champions and fuel your digital marketing success!
Using content and inbound marketing can do wonders for your business. But, achieving your marketing objectives with a content marketing strategy takes time.
It won't happen with a few blog posts or some other great content. People will need to consume your content for a while before they contact you. Yet, without your content compelling them to contact you, your goals may never be met.
The good news is that you don't have to figure it out alone. One of the best investments you can make with your marketing budget is to partner with a solid firm like BroadVision Marketing.
Click on the button below, or call BroadVision Marketing at 707-799-1238.