Using a Customer Referral Program as a Part of Your Marketing Strategy

Posted by James Vumback on September 25, 2017

Topics: Customer Referral Program

Customer referral program | Marketing StrategyFinding the right elements for your marketing strategy is a struggle for many business owners. You want to find marketing strategies for your business that are both successful and cost effective. Many of the traditional marketing strategies-like print ads and television spots-can quickly become expensive. Some types of digital marketing are less costly but are so new they lack the data to show their effectiveness in reaching your target audience. You have to work diligently to find the right mix of marketing strategies so you can reach your target audience without breaking the bank. One marketing strategy that needs to be a part of all types of businesses is a customer referral program. A customer referral program can help you grow your business without draining your entire marketing budget. It will help you bring in more qualified leads, keep your customers engaged longer, and attract new business through your incentive structure.

A customer referral program can provide you with high quality leads

Leads are an important part of growing any business. When you look into options for lead acquisition there are plenty of ways you can go about it. For most businesses it is not difficult to find leads, but it is difficult to find high quality leads. Anyone can buy an email list and send out marketing emails with the hope that someone on the list is interested in their product. This is where customer referral programs stand out from many other types of marketing strategies. The majority of the leads that you get through a customer referral program will be high quality. This is because the leads are coming from people who have purchased your product or service and had a good experience. They are so happy with their experience with your company that they are willing to talk to their friends and family about it. The leads that come from your referral program will already have some knowledge of your company because of their interaction with your customers. This makes the leads that come in from your customer referral program higher quality than the ones you find through many other types of marketing strategies.

A customer referral program helps you keep your customers engaged longer

Keeping your customers engaged is an excellent way to increase the likelihood that they will provide you with referrals. One way to do this is to set up your customer referral program inside of a mobile app. You can have an app developed for your company that includes your customer referral program and the ability to stay in contact with your customers. For example, you can have an app designed that includes features for push notifications and direct messaging. Both of these features will help you keep customers engaged even after they are finished with their purchase from your company. Keeping your customers engaged maximizes the potential for referrals in the future.

A customer referral program with an incentive structure can help you attract new business

When people are trying to decide between two businesses for the same product or service, there is not always a major difference that sways the decision. Sometimes it is a small difference that pushes them to one company over the other. A customer referral program with an attractive incentive structure could be the difference that attracts new customers. Get the word out about the incentives in your customer referral program even to people who are not currently customers. The possibility of earning cash or rewards may be just what some of your potential customers need to help them make a buying decision.

Using a customer referral program as a part of your marketing strategy can have a major impact on the overall success of your business. It is a way to bring in high quality leads with much less expense than more traditional marketing strategies. A well-designed customer referral program can also help you keep your current customers engaged and attract new business. If you are actively looking for a proven and cost effective marketing strategy then it is time to create a customer referral program for your business.   

 

5 Step Guide for Customer Referral Program

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