Optimizing Referral Programs for Your Business
January 18, 2021 / Category: Business
Did you know referral programs are one of the most efficient and effective ways to increase your client base as well as retain your existing clients? This method of business development translates into likely opportunities to add new clients to your portfolio. When your business is referred to friends, colleagues, and family members by your existing clients, it symbolizes that your current clients are impressed with your product or service, which makes it more likely the people being referred to you are going to come on board with your entity. Still unsure? Take a look at some of the ways a referral program can help you to grow your business.
Information From a Friend Is Trusted Information:
Consider if you were looking for a product or service; what information are you more likely to be excited about? Doing a random internet search or having a trusted friend/colleague suggest the best option for you? Studies show that 92% of consumers across markets are more inclined to follow the suggestions of those within their inner circle.
Clients Feel Like They Are a Part of the Company:
When you reward your existing clients for referring people to your entity, clients feel like they are contributing to the success of the company. Studies show that non-cash incentives are 24% more enticing for those participating in referral programs. Thank your clients for spreading the word! Product discounts or free items or services go a long way in having your clients spread the word about what you have to offer!
Increased Marketing Impact:
Considering the average social media user (not even considering influencers) has approx. 400 followers- the potential to get your entity out and on the minds of others is astounding. Building on the above, if the average person interacts with 10 people a day and mentions your brand, and that person turns around and engages another 10 people, this method allows your entity to reach potential new clients at a much quicker rate. Peer-to-peer referrals drive 4 times the media lift than other methods of marketing.
Referral Clients Are More Valuable to Your Business:
Customers who have been referred to you already have a positive outlook on your business because they were referred by someone they trust/respect. These clients have an increased lifetime value compared to other customers. Therefore, the minimal cost of rewarding referrals (gifts, discounts) means that your ROI is maximized.
Drives Repeat Purchases:
Clients are more likely to purchase your product/service multiple times because they want to earn the incentives you are offering. While it is true they value and respect what you have to offer, striving towards VIP exclusivity, cash-back rewards or incentive gifts will fuel their continued dedication to your business.
Simple and Easy To Do:
Referral programs do not have to be complicated. By implementing a system or software to track client engagement and referrals, will automatically track their efforts while minimizing yours. A referral program allows you to maximize your leads at a fraction of the cost of looking for leads elsewhere.
How are you going about initiating or increasing referrals from your current clients or from new business opportunities? Talk with us about improving or engaging in a referral campaign if you don't already have one -- if you do, are we aware of it? Let's create a strategy to promote it.
Namami has long been a big promotor of referral programs to grow your business! We are here to help you optimize your client base! Connect with us to improve or build your referral campaign! Visit us online at www.facebook.com/NamamiInc or give us a call at 561.926.3969 to get started.