Business improvement idea for a small venture: Customer referral programs

by Souvik on 15/05/2018
Modern technology has transformed marketing in more ways than one. With the emergence of digital technologies such as SEO, SMM, and SMO, brands have moved away from traditional forms of marketing and business promotion. However, for smaller brands, word of mouth is still one of the most potent tool for business growth. As suggested by a business trend survey, 85% companies still depend primarily on word of mouth referral for brand promotion*. The real trick lies in making the best use of available technology to boost the reach of word of mouth promotion.

If you are looking for ideas to increase sales, you need to give customer referral program a serious thought. Your existing happy customers are ambassadors who are likely to give your brand promotion a positive boost.

Customer referral program is one of the most cost-effective business improvement ideas that small-scale businesses can try. Implementing the concept correctly can give you the following benefits:

A referral program can go viral easily. Thanks to social media, getting the word out is now easier than ever for small and mid-level companies. If you are running a customer referral program, you need to encourage users to share their opinions on social media by incorporating easy-to-use share buttons. Honest testimonials, when shared by the customer on social media, tend to get a lot of attention from other prospective customers. This can boost your brand’s visibility and attract new customers without having you spend much.

Gain loyal customers. Most referral programs revolve around the philosophy of targeting existing customers with some added benefit. Be it in the form of gifts or exclusive discounts, these incentives add to the number of returning customers. If you are able to continue to have these programs without lowering the quality of your service, you are likely to gain loyal customers in due course of time. Loyal customers act as brand advocates and are likely to promote your brand in their personal circles. As per a research report, 18% of referred customers are likely to stick to your brand**.

Best type of advertisement. Referral programs act as advertisements without making you spend too much on promoting your brand. Once users start sharing your referral program on their personal social media channels, the online visibility of your brand is likely to improve significantly. This concept makes existing customers promote your brand, making it more credible and authentic to your customers.

Better customer experience. Who doesn’t like to feel special? Your customers are no exception to the rule. Referral programs give existing customers a privileged feel that adds to the overall CX. It also makes the relationship of the customers with your brand stronger than before. The customers promoting your business will naturally feel responsible for your brand’s success.

Easy on the pocket. Most marketing strategies require a lot of budget, making it extremely difficult for smaller brands to implement. Customer referral program is a concept that is easy to implement and doesn’t require heavy financial investment, making it tailor-made for small businesses.

Customer referral programs can undoubtedly spell profits for your business. Get started by registering yourself as a seller on Amazon and make the most of its cross-country customer base for building authentic referrals for your brand today.

*Source: Summitfr: How Small Businesses Can Benefit from Referrals
**Source: Kabbage: 5 Ways Referral Programs Help Small Business

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