How referral marketing can 10x sales

Referral as a business strategy is one of the most powerful strategies to gain customers.

A referral is a positive and affirmative word of mouth about a brand from a customer to friends and family, and even anyone who cares to hear. The statistics of referrals are massive and 10x some business.

In this blog post, we will be discussing:

• Reasons referral marketing is a must for your business
• Benefits of referral marketing
• Getting started with referral marketing.

Reasons referral marketing is a must for your business

These statistics from earlyparrot.com shows that not including referral marketing in your marketing plan is as good as leaving 10x of your current sales on the table. Below are the statistics from earlyparrot.com:

• 82% of B2B sales leaders are convinced that referral marketing generates the best leads.
• Every 1 happy customer can refer your services to up to 9 people.
• 92% of customers trust referrals more than advertising.
• People trust referrals from friends seven times more than any other advertising method.
• Referred customers tend to spend up to 16% more money with your company.

Impressed? HubSpot – a marketing software platform added more statistics in their blog post.

According to blog.hubspot.com, customers rely on word-of-mouth between two and 10 times more than paid media, and 74% of consumers say recommendations from people they know are key drivers of their purchasing decisions.

These statistics are awesome!

Think of your reaction when your mom tells you a new product is awesome after she tries it. You trust your mom, therefore, you would willingly try the product.

When you see an advertisement for a new product, even with good messaging, you may not trust the brand immediately. It may take you at least 3 -7 times before trying their product, or you may never try it.

That’s how powerful referral is. You trust a new product your mom recommends over an advertisement.

Benefits of referral marketing

The statistics and illustration above already show how powerful referral marketing is, let’s go ahead to discuss other benefits of referral marketing.

1. It increases brand awareness
2. It enhances a strong relationship between a brand and its customers.
3. 10x sales

1. It increases brand awareness

Imagine an excited customer talking to whoever cares to listen about how great your product is. That’s a more authentic form of advertisement. It may not translate to sales, but it means a new person knows about your brand, and that’s great for a start.

The statistics by earlyparrot.com says that every 1 happy customer can refer your services to up to 9 people. 10 happy customers equate to 90 possible referrals.

2. It enhances a strong relationship between a brand and its customers

Imagine, a customer is well satisfied with your product that they choose to become an unofficial brand ambassador. When they feel good about your brand, they feel responsible and loyal to you.

The energy from an excited customer will make people referred trust you completely too.

3. 10x sales

When it comes to referral marketing, the first factor eliminated is skepticism, and the first factor added is trust. Referred customers, according to earlyparrot.com, tend to spend up to 16% more money with your company. blog.hubspot.com added that 74% of consumers say recommendations from people they know are key drivers of their purchasing decisions.

Other benefits are:

• It stabilizes customer retention
• It reduces the cost of acquiring new customers
• It’s a great way to start if your marketing budget is limited.

Getting started with referral marketing

It’s pertinent to note that referral in its basic form begins with a good product and great customer service. It’s a requirement to get started with a referral.

This isn’t only about the brand, but about your customer’s credibility. If your product is great, it will enhance your customer reputation and credibility and vice versa.

Every human wants to feel special, therefore, investing in top-notch customer service will go a long way. This customer service in its basic form could be a functional website that ensures customers will order what they want with ease. When a customer is happy with your products and services, they tell people about you!

Here are great articles to get you started on the path of owning a functional website:

• 4-must use e-commerce sales channel
• Ingredients of a website that your target audience will love
• 5 blueprints to driving traffic to your website
• scale your e-commerce business – branding, website, marketing

Below are other ways to get started with referral marketing:

1. Referral programs
2. Influencer marketing
3. Call to action.

1. Referral programs

Referral programs are plans whereby you ask your current customers to talk about your products and services in exchange for an incentive, which could be monetary, a discount, or something that genuinely appeals to them.

2. Influencer marketing

We as humans have that person or group of people that we respect and adore. This means in one way or the other, they have a certain influence over you. If a person or group of persons who influence your potential customers talk about your brand, there is a high chance that they will patronize you.

NB: Influencers are very common in the social media world of today, ensure that the ones you work with have a direct influence on your potential customers.

3. Call to action

Sometimes, all your current customer base need is a push to talk about your products or share your content. Never miss out on it! Call to action like ‘share with a friend,’ and ‘talk to a friend about us are sometimes what your audience needs to see or hear to become brand ambassadors.

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