Referral Marketing – Get the Power by Launching Your Own Campaign
By Nicholas Hurd
Many research papers have proved that the best option of marketing for sales and conversions is starting your own Referral Marketing Campaign. Referral Campaign is also known as word-of-mouth marketing. That’s because it is all about one person giving his own opinion or advice to other for purchasing some product. And it is the most powerful type of marketing as people like to get help from others. And, they trust their opinions and experiences while purchasing almost any product.
Think about it like this: we commonly like to get advice and recommendations from our friends and family. Especially about watching some TV show or movies in our precious time. And as consumers, we also like to share our stories and experiences about the products and brands we choose. This becomes more useful when it comes to buying unique type of products.
After reading this post, I’m sure you’ll agree that the referral marketing is the most effective way of marketing. I’ll describe to you the three main reasons why the referral marketing has become so powerful in this modern age. In this post, you’ll also find some examples of successful referral campaigns, In addition, you’ll also find some effective tactical steps, so you can also launch your own powerful referral marketing and boost your business.
Here’s Why the Referral Marketing Has Become So Powerful In This Modern Age
Now every businessman knows that the referral marketing is the most effective and powerful forms of marketing, but in this post, let’s jump into, why?
Following are some core reasons for this, explained in detail:
1. Targeted Marketing
If you have used Google Adwords or Facebook Ads, you’ll know how it feels to watch right before your eyes money slipping through your hands. I am not saying that it is the problem of platform you are using for marketing. I am trying to explain how these platforms are important in a different way than targeting your main audience. And, that can result in waste of money if you aren’t very careful. A marketing campaign requires two key components to be perfect and effective, a great brand message for the audience and highly-specific audience targeting.
However, word-of-mouth marketing, that is, referral marketing works because it’s a highly targeted audience. It works perfectly because people like to know the choices of their friends and social audiences. In this type of marketing your brand message spreads more successfully than with most other marketing channels and moreover in very less expenses.
Credibility is a very important factor especially when it comes to convincing someone to buy something. If we don’t trust someone, how can we listen to their advice and recommendations or implement them as they say. Let’s consider yourself in this place, think that a salesperson you don’t know very well yet come to sell you something and you have doubts about his sanity due to lack of trust, ask yourself will you do act upon the advice of that man?
However through referral marketing, the sales always come from the person that customer already knows well such as friends and family. They also come from any trustworthy source such as popular newspapers or favorite blogs.
Research has demonstrated that customers always go with salesperson opinions if the brands carefully design the organic advertisements and sales pitches.
A latest research “Marketing Trust Study” also proved that the referral marketing is the most trusted and reliable form of advertising so far:
But remember, it is not necessary that referrals always just can be friends and family. Referrals can be of variety of types, it depends on the audience you are serving. Following are some main types of referral channels?
· Friends and Family
· Authentic Newspapers
· Customer Reviews, Reports and Surveys
· Reliable Blogs or Social Media Sites
3. Influence of the Client
In previous decades, the reach and influence of the average customers was very limited. However, in this era of the Internet, Facebook, Twitter and smart phones, the average customer’s reach is much bigger than before. ‘Now many people have become social icons, with enormous followings. They can make or break a business with what they say about it online.
At this time, with a simple blog post, article or just a tweet, people can make hundreds of credible fan following in a matter of seconds. This kind of social reach is also an important reason for developing your referral marketing.
Examples Of a Company That Used Referral Marketing to Catapult Their Businesses
So we have gone into how referral marketing affects a business, now let’s look at an example of a company that got rich with perfect strategy of referral marketing.
Harry’s is an innovative Men Grooming Product Company. Their shaving supplies for men are one of finest in the market today. The demand for their products was huge in a just a few days, and you know how, by referral marketing.
In the 4-Hour Workweek Blog, Jeff Raider, co-founder of the Harry’s shares in his post that their Referral Campaign used to get over 100,000 sign-ups even before launching. They pre-launched the referral marketing campaign on their webpage with a gift offer, and by that they were able to launch to a massive audience.
Above shows how companies get extreme benefits from referral marketing. So now you should use power of referral marketing.
4. How You Can Use Referral Marketing in Your Business
- Use your email receipt to encourage your customers to tell their friends and acquaintances about their experience with your product or service.
- Add product reviews to your website and products
- read the reviews you receive to find anyone that’s had a problem. If so, you can react to it and clear up the situation
- Add social links to your items so people can post on their social media
- Track social media to find any negative reviews or remarks. Reach out to your customer to clear up the situation
- If it’s a good review, send a thank you.
- Find any influencers in market place. See if you can get them to review your product. Or, add it to a review of products like yours.