"The purpose of business is to a create customer who creates customers." - Shiv Singh
Referral marketing, also known as 'word-of-mouth marketing, has proven to be an invaluable strategy for attracting new customers through referrals of both happy customers and those in the brand’s professional network .
Yet it’s a part of the marketing program that’s usually stuck on the bench only given focus when convenient.
It should be part of the prioritized playbook.
Referral marketing is an approach that inspires with incentives to those who brag about your brand's products or services. In today's digitally driven world, referral marketing has evolved and enables companies the opportunity to digitize their referral programs and customer rewards.
Face-to-face conversations and personal recommendations have been impactful when it comes to generating new business. However, significant customer interactions have moved online. As businesses embrace the potential of
digitization, they unlock more benefits and opportunities, including automation, personalization, reporting, and seamless multi-channel integration.
A robust referral marketing strategy goes beyond traditional marketing efforts. It is a bridge between engagement and long-term trust with customers, leading to increased lifetime value and revenue.
92% of customers trust referrals from people they know. Referral marketing allows your brand to transfer trust from the person that already has credibility with a potential customer to you and your brand.
Referred customers result in profit margins as high as 25% more. That means a focus on referral marketing increases both revenue and trickle through to the bottom line.
The ‘Loyalty Centric System' makes implementing a successful and modernized referral marketing strategy simple and empowers businesses to scale more profitably. We empower brands to fully automate and gamify the referral process, making it effortless to refer friends and family.
Incentivizing customers to make referrals fuels a referral program. Tailoring incentives to customer preferences does that even more. For customers likely to make repeat purchases or a complimentary business with the ability to make a referral, rewards are often strongly encouraging. And gamification is significantly engaging on an ongoing basis.
Efficiency is key in referral marketing.
Simple and straightforward processes benefit both businesses and customers, ensuring that referrals become a consistent and fun experience. With Loyalty Centric, businesses can easily deliver referral requests, rewards, and insight surveys across multiple channels, streamlining the entire process.
Being data-driven is key in understanding how efforts connect to financials and to inform more effective strategy.
Keeping a close eye on customer lifetime value, retention rates, referral revenue and more can provide invaluable insights for future marketing strategies. It also helps your brand to proactively anticipate customer expectations vs. just trying to meet them where they are.
Referral marketing, powered by 'The Loyalty Centric System,' has the potential to differentiate the game for businesses by leveraging the power of recommendations. By building trust, incentivizing referrals,
and streamlining the process, companies can unlock a powerful source of consistent customer flow and maximize growth.