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Referral Marketing; How to Make the Most Out of It.

I once read an online review from a man who was bitter after he called a company to come to fix his water pipe but they never showed up; 5 days later, he called another company and they attended to him almost immediately. With such review, would you call on such a plumbing company when you need to fix your water issues? I can tell that you won’t.

As a company, a statement by just anyone on the internet can kick you out of the market in no time or help you stand firm; that’s the power customers have. The moment they sense that your organization is out to simply make money without providing value, they flee from you and warn others within their circle to beware of your brand. In this year alone, we at Big Field Digital have gotten over 30 clients based on referrals from satisfied clients; this loudly speaks for us and shows that our clients are pleased with our results and customer service. It’s not rocket science, if you implement these simple hints below, you might just be on your way to boosting your client base through referral marketing.

Just in case you are cut in between and do not have an understanding of what referral marketing is and what your business stands to gain from it; I’ll let you in quickly. Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth, online reviews, testimonials and more.

This is referral marketing
Source: Oberlo.com

The impressive part of referral marketing is the fact that your customers get to market your business without you paying them to advertise or promote you. They do it from a place of satisfaction and excitement as they want others to experience the same awesomeness you have delivered to them.

How to make the most out of referral marketing.

It is important to know that your customers can only refer you to other prospects if they are satisfied with every aspect (customer service, feedback, and results) of your product or service delivery. 85% of small businesses say word-of-mouth referrals are the number one way that new prospects find out about their businesses.

Encourage your satisfied clients to tell people about your business.

After selling a product or offering a service to a client, try to get feedback from them to know their level of satisfaction. If they commend and are happy with you, encourage them to tell their friends and network about your business. It is typical of an unsatisfied customer to inform the whole world about his nasty experience with a company and discourage others from patronizing them. The truth is, you are likely not to hear a word from such a client but would have lost quite several prospects before you even meet them. During my research, I learned that a satisfied customer is likely to tell 9 people about your business while an unsatisfied one will tell 27 other people about their experience. Remember that delighted customers are happy to help you grow your business. Don’t be afraid to ask for their help.

referral marketing
With referral marketing, everyone wins. Photo source: Oberlo.com.

Put in place a compensation plan for referrers.

If a previous client refers you to another customer, do not let them go empty-handed. You could thank them by giving them a discount on their next purchase or gifting them with a free service or product. This way they will be more interested in marketing you because they know there’s something in it for them also. Apart from compensating referrers, you should make your loyal customers know that you recognize the support they give to your business. One way to go about this is through loyalty programs like discounts, festivity promotions, and giveaway. Any client that has patronized you more than twice can be considered as a loyalist and should be acknowledged.

In other to reap the rewards of referral marketing, your clients must get value in exchange for their investment.


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