How To Implement A Referral Scheme For Your Business
When it comes to landing new customers, word of mouth is still proving to be extremely effective. In an age where consumers are completely spoilt for choice, having a personal recommendation from someone they trust is highly valued.
In fact, referral marketing still remains the most credible form of advertising as research from Nielsen shows that 83% of people surveyed online said that they trust the recommendations of friends and family.
With this in mind, here is how your business can implement a referral scheme of its own:
Choose an incentive
Depending on the nature of your business, you’ll want to decide on an incentive for your referral scheme. Some options could include discounts, free gifts, loyalty points as well as other money-saving perks. When deciding on your incentive, make sure that you land on a reward that your customer and referral will actually benefit from. The reward should also keep customers coming back to your business time after time.
For example, at Liberis we reward our customers when they recommend us to fellow businesses. Once those referred businesses receive a Business Cash Advance both parties receive £250, so it’s a win-win situation!
Advertise your referral scheme
Once you’ve figured out what sort of perk you want to offer, it’s time to let everyone know about it. This means posting about it across your social media channels, on your website and across all of your communications. If you’re an online retailer then you could also create a website pop-up at the checkout letting your customers know they can get rewarded for referring a friend. And don’t forget about the power of offline advertising. Put up posters around your premises and print the details on all of your receipts.
Keep it simple
Your customers don’t want to spend ages filling out lengthy forms or delay their purchasing journey with time consuming processes. That’s why it’s really important that you make the referral scheme process as simple and streamlined as possible. Consider setting up a dedicated landing page that you can point customers to via a direct link. You can also implement buttons on your website, email communications and social media channels to share referral links with friends and family in just one click. If you need a little help setting this up there are plenty of software options available such as Mention Me and Growsurf who will take care of the technology for you.
Focus on your loyal customers
If you’re struggling to get started then you could consider utilising loyal customers that you already have a strong relationship with. After all, if they’ve bought multiple products from your business or visited your premises numerous times, then it’s likely that they’re already willing to refer your business. It could also be worth asking them for some valuable feedback on how you can make your referral scheme more appealing and beneficial.
Track your referrals
Once you’ve started getting some referrals through, it’s important to track the data on this. Google Analytics and any CRM systems that you have in place will be able to give you all the insights that you need on your referrals. You should be tracking metrics such who was referred and who referred them, when they were referred, and the activity of that referral. From this information you can uncover the customers that are referring the most people, make improvements to your scheme, and use the information to work out an approach on nurturing your referrals and effectively following up with them.
So now you have a few tips on how to set up your own referral scheme, it’s time to try it out!