The Best Customer Referral Ideas For Your Business
The 3 best referral program ideas and how to implement them to generate high-quality leads for your business.
WHAT IS A REFERRAL PROGRAM?
A referral program is simply a marketing tactic that rewards customers of your brand to promote or advocate your business to their peers through word-of-mouth. Since referrals are given by satisfied customers who have tried and tested your product, they have a much higher chance of increasing sales while keeping marketing costs low.
1.CONTESTS AND GIVEAWAYS
Contests and giveaways are a great way of encouraging existing customers to refer new leads to your business. An example of this can be a giveaway wherein a certain specific number of referrals are required to enter the contest.
To improve the quality of leads to your business, you may set the entry barrier as a specific number of converting clients instead of random contacts. This means that your customer will have to get a friend to purchase your product in order to participate in the giveaway. This will not only help you gauge genuine people to be interested in your business but also help your sales team to close deals faster and with a higher success rate.
Everyone wants to contribute to a good cause. Fundraisers are a sure-shot way of forming a meaningful bond with your customers by involving them in campaigns that align with their values. Fundraisers may or may not be directly related to your brand or product and therefore are a great way to build trust in the long run.
Furthermore, fundraisers are a great way for existing customers to refer your business to their friends as there is no pressure for them to make a purchase. New leads can be added to your business’s database and their interest can later be shifted towards your product or venture at a convenient time.
3. EXCLUSIVE EVENTS FOR CUSTOMERS
This tactic plays on people’s psychological fear of missing out -also known as FOMO. Events that are exclusive to your customers make them believe they are part of a community. This can be done through a charitable event or a fun social affair where customers get extra tickets or similar incentives for inviting friends. This way potential customers can get acquainted with your brand in a fun and casual way rather than in an official setting. By giving them a taste for such fun activities, you are more likely to get them interested in your business and convert them into high-quality leads.
To summarize, the best referral programs are the ones that add value to your potential clients’ lives and are a great way to spread the word about your business.