Referral Marketing Explained

Referral Marketing

So if 2016 was about content marketing and 2017 saw the rise of Influencer marketing, 2018 will be about referral marketing.

So what is referral marketing? 

‘Simply put, referral marketing is spreading the word about a product or service through a business’ existing customers, rather than traditional advertising.

Word-of-mouth marketing, which occurs when others tell each other about a business, is also considered a form of referral marketing.’

(Source: http://www.marketing-schools.org/types-of-marketing/referral-marketing.html)

referral marketing

And why is it so important?

70% of millennial consumers are influenced by peer recommendations. (Medium 2017)

We all know the importance of personal recommendations in our own life and social media seems to have a constant stream of people asking questions such as…

Can you recommend somebody to clean my oven?
Does anyone know an architect?
Who is the best estate agent in the area?

So what are our top tips for encouraging customers to refer you?

Ask for referrals at the right time

Timing is everything so asking for testimonials at the right time is really important. Try to ask (happy!) customers after 5-7 days of them using your services to give you a testimonial. Also, don’t forget to offer referral incentives regularly to encourage your satisfied customers to spread the word.

Make it easy for people to refer you

If you are looking for reviews for Facebook and Google, make it really easy for customers to leave these reviews by providing links. Complicated processes will stop people from leaving reviews.

If you are looking for people to forward on an email or recommend a friend to receive a reward ensure the process is simple.

Say thank you or reward referrals

Remember to acknowledge customers when they refer somebody to you, a simple ‘thank you’ can go a long way and ensures they will refer you again and again in the future.

Offering a reward for referrals can often be a great strategy to use and can entice customers to refer you to a friend. Try to think about what your customer would want as a reward as this can often be different from what we would want ourselves. It’s often worth asking a few customers what they would like as a reward.

Above all, giving good customer service and building a relationship with your customers will always be the best way to get referrals.

Further reading 3 Reasons why online reviews are important.

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One thought on “Referral Marketing Explained

  1. Really enjoyed that piece Emma and Kate at Piece of Cake Marketing. I have just picked up a public appearance and speaking engagement at a prestigious event as one of the attendees had booked me for their event and said we need to book “Paul Curtis”

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