A few days ago, a friend WhatsApped me the link of a website that has some trendy collection of jeans. Before opening the link, I asked him what it is.
He said it’s a newly launched fashion website where you get some unique collection of clothing items, that too at a reasonable rate. He further said that for the first time registered user, they are offering a flat 20% discount.
Even though I knew he will also get some incentives if I register through his forwarded link but what he said was indeed true. The site has some amazing stuff.
Impressed, I told about it to a few more friends. And I am sure they would have too.
This is what we call REFERRAL MARKETING!
What is Referral Marketing?
Referral marketing is the type of marketing where your existing customers give a shout out about your brand to others; family, friends, and relatives, which helps you acquire new customers.
Put simply, it is a word-of-mouth marketing where your customers market your brand or products or say spread a word about your business. In return, you reward them with some incentives for bringing new users/customers.
Referral Marketing Ideas and Strategies
If you are running a referral marketing campaign, keep a few points in your mind to get the most out of it. With that being said, let’s take a look at some of the effective referral marketing strategies-
1. Rewards for Both
To get fruitful results from a referral marketing program, make sure that the person who refers and the person who is being referred both get some rewards on successful referral.
If you are not paying the former, he or she would not be interested in sharing it with their known ones. The same goes for the latter. If they are not getting any kind of benefit through it, they will be least interested in giving it a look.
But if there are some perks for both, the referral program will surely bring some amazing results. This is basic and amongst the best referral marketing strategies.
2. Add Emotions to Your Way of Asking
Instead of simply saying “Refer a friend and earn XYZ”, it would be more ideal if you say “Hey, help us reach out to more people and get exciting rewards for it.” When you add emotions to your words, it leaves a stronger impact.
Ideally, this is the way to do it. Besides, it looks like an actual conversation between two people like someone is asking you for help else it seems like a conventional marketing scheme with no impact at all.
3. Do Not Reward Only When Someone Makes a Purchase
Most of the referral marketing programs focus on providing incentives only when the referred person makes a purchase. In fact, the referring person also receives rewards only when the other person buys anything from the website.
The idea referral marketing strategy here would be to provide commission also when the user successfully registers on your website. I mean there should be at least something for a person who sent a new user on your website and made him/her registered. And to make the referred person go for the first purchase, you could encourage them with an exclusive coupon code for first-time users.
This referral marketing idea is accepted by most of the brands.
Benefits of Referral Marketing
Let’s try to find out how referral marketing programs can be helpful for your business.
1. Boost Your Website Traffic
One of the major benefits of referral marketing is it tends to bring in more traffic on your website. The traffic during your referral marketing campaigns would comparatively be high as compared to other days, only if the campaign turns out to be successful.
2. Acquire New Customers
One of the primary purposes of a referral marketing program is to get more customers to your brand. And if implemented well, it will surely do the needful for you. You will get new subscribers in your email list which will help you target them later through your email marketing campaigns, and you will eventually gain some new customers as well.
3. Boost Brand Awareness
Referral marketing proves to be one of the best ways to grow your brand awareness. When people start discussing your Brand, it gives you a name in the market and more and more people try to know about it.
And believe me, no kind of marketing can beat word-of-mouth marketing.
4. Increase Your Store Sales
If you are rewarding people with some exciting incentives for promoting your website, getting registered or making a purchase, you will surely achieve high sales on your website. Who would not like to grab some rewards if they are enticing?
Referral marketing creates a win-win situation for both the customer and the brand.
Affiliate and Referral Program Module by Knowband
If you are also looking to start a referral program on your website and manage everything easily, the affiliate and referral program module will let you do that without any hassle.
The module sets up an affiliate section on your website and allows customers to register as an affiliate and earn some exciting rewards for referring your website to others. The rewards are awarded when a new user registers on your website or makes his/her first purchase. And you can also set up the commission value from the back end.
The affiliate can refer to a person by sharing the website link, referral code, etc. This module based on Referral marketing is currently available for the PrestaShop, Magento, and Magento 2 platform. Check out-
PrestaShop Affiliate and Referral Program Addon
Magento Affiliate and Referral Program Extension
Magento 2 Affiliate and Referral Program Extension
For any assistance, feel free to drop a comment below or submit your query at support@knowband.com
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