Understanding the Importance of Referral Marketing for Business Growth

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    According to recent surveys, 70% of consumers said they would be more likely to refer a brand if they had a great loyalty program.

    It's statistics like these that shed light on the importance of smart marketing with special attention to the little details. With just a few key steps, you can experience the benefits of referral marketing to boost your business and collect valuable leads.

    Why are referrals so valuable, you ask? Follow along to discover the distinct benefits of this reputation marketing tool for your growth and longevity.

    What Is Referral Marketing?

    Referral marketing, also known as word-of-mouth marketing, is the concept of gaining new and dedicated customers by having your existing client base refer their friends, family, and more.

    The reason this technique is so important is that your consumers value the opinions of their friends, family, and influencers now more than ever before. By giving a personal recommendation to refer customers to your brand, that person is putting their stamp of approval on you.

    This goes a long way to skyrocket your reputation marketing and make more impactful relationships.

    Referral Marketing 1

    The Benefits of Referral Marketing for Your Business

    Not sold on starting a referral program for your brand?

    Here are a few key benefits you can experience by fleshing out your referral marketing strategy.

    Increased Buy-In

    As we mentioned above, consumers take recommendations to heart. This means, when someone they trust recommends your brand, they are far more likely to choose you over your competitors.

    In addition, offering a reward for both the referrer and the referee encourages higher conversion and increased buy-in.

    Laser Targeted Marketing

    Ads are great, but just because someone sees your paid advertisement doesn't mean they will be interested in your services.

    With referral marketing, you're being recommended to people who are already looking for your services. After all, why else would a customer bring you up?

    Impressive Reach

    Finally, referral marketing has the potential to reach an impressive amount of interested buyers.

    What's even better is that you won't be paying-per-click for all of these new and excited eyes on your products, services, and web pages.

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    How to Execute Referral Marketing for Success

    There are two primary ways to soak up the benefits of referral marketing. You can create a compelling referral program and you can embrace influencer or affiliate marketing trends.

    Referral Program

    Buiding your referral program is easier than you think. In fact, all that you really need to do is provide great service, make referring easy, and reward your customers when they send business your way.

    Use simple links to simplify referrals and offer your loyal customers a bonus or discount for helping you grow!

    Influencers and Affiliates

    Affiliate marketing or influencer marketing helps you reach a larger audience. You do this by utilising individuals with large followings on social media sites.

    By giving these profiles a code to offer to their followers, they'll earn a commission on the referral. This gives them an incentive to share your brand and gain you those sales!

    Refer Clients and Customers With Ease

    Refer Clients and Customers With Ease
    Now that you know the power of referral marketing for your business, it's time to put your strategy into action.

    Not sure where to start when building your collection of referrals? Get in touch with us today to work out your strategy and started experiencing the benefits for yourself.

    Owen is a business consultant with extensive experience in corporate affairs, external relations, strategy, marketing and engagement. He consults with clients to understand the challenges they face and create solutions to overcome. Owen holds an MBA, Master of Business, Bachelor of Business, Diploma of Investor Relations, and certifications in corporate innovation, digital marketing, and product management.

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