Referral links marketing is a process of promoting products or services to the new customers from the word of mouth that increases the referral significantly. It is often spontaneous and perhaps the oldest and most trusted marketing strategy. Referral marketing can be accomplished by rewarding and encouraging customers both online and offline.
Online is totally based on the internet which is very different from the traditional approach. The web browser cookies helps to track down the customers’ behaviour online that is used to increase the brand awareness and potential referrals ultimately resulting in the increase in the revenue. It basically focuses on the interactions between customers. The internet is the common channel for this kind of online referral marketing. Internet is a platform that provides abundant outlets like Facebook, twitter, LinkedIn etc. to the users to share their opinions and experiences. You can also refer a friend online at refafriend.This helps the marketers to encourage the referring parties with pre- scripted messages.
Working of the referral links marketing:
- The company provides various users with links including various referral codes and convey the information through e-mails, blogs and messages.
- This system of providing customers with information is often integrated and formed into online marketing programs.
Results of referral links marketing:
- According to various studies and researches referral marketing programs mostly have positive results as the referred customers were found to be more loyal and profitable than the normal ones.
- These customers were more valuable in both short and long run with higher retention rate and higher contribution margin. This aspects further helped the companies to increase its revenue as well as sales that resulted in profit making in the long run.
Studies have proved that referral marketing strategy is one of the best forms of marketing as people buy products based on someone else’s opinion and influence. This marketing strategy also powerful because people trusts the people in their lives and value their opinions and implement them. Family, friends, social media influences , big stars and celebrities play an important role in molding their opinions and their decisions usually depends on the influence these people create in their minds.
To carry out the Referral marketing schemes and programs the companies use various software that serves many purposes as stated below:
- Tracking online and offline sales
- Uploading logo
Customizing the look
- Editing reward triggers and eligibility rules
- Running multiple referring campaigns
- Personalising the referral experience
- Rewarding the customers with coupons and gift cards
Referral based marketing basically aims at carrying out the business by using the “word of mouth” in the most effective manner focusing on the below mentioned points:
- Building a brand and reputation around any one thing that you do better than anyone else that helps to attract referrals.
- Not hesitating in asking people for referrals if you need them .There can be various occasions when people might be willing to give them to you but might not be knowing that you need them which will cause losses to the company as well as the customers.
- Grabbing the opportunities as much as you can. If someone has complemented your work, it is considered as the best time to ask for referrals.
- According to the studies, it is estimated that typically 80% of a company’s business comes from 20% of the reffered clients.
- Sharing of ideal client profile with your referral network usually helps in the business.