In terms of what generates the most conversions (that is, taking a lead and turning it into a customer) and, ultimately, sales, online referral marketing is frequently and consistently cited as the most effective method of marketing. This type of marketing is also called "word of mouth marketing," and the reason it's so effective is simple: human beings are more likely to trust the word of their friends and family over the word of a stranger. In other words, if a friend of yours had a good experience with a product, the chances are high that you would be willing to try the product yourself...and, ultimately, have a good experience with the product...thereby turning you into a customer along with your friend.
In this blog post, then, we're going to discuss why referral marketing is the most effective way to get a new customer.
What makes referral marketing so effective?
As was previously hinted in the opening paragraph, referral marketing is effective because people are more likely to trust the word of a friend or a family member over that of a total stranger. Let's look at some other reasons why referral marketing is so effective:
- Referral marketing is precision targeted: because you know what message effectively worked for your potential customers' friends and family, you know what will -- most likely -- work for them. Therefore, you can be exacting in your marketing efforts.
- Referral marketing has a great reach & acceleration: thanks to the online nature of the world today, you'll be able to transmit your message with a simple Facebook post or Tweet, depending on who's doing the sharing. And, because social media is a real-time online campaign, transmissions that once took days or weeks to effectively place across several platforms now will only take a matter of seconds.
- Referral marketing has a great trust factor: no less of an authority than Nielsen has reported that referral marketing -- moreso than any other form of marketing -- is the most trusted form of marketing...and by a large and wide margin!
For more information about referral marketing and our services, contact us today!