A Guide to Referral Programs

Nov 10, 2021

Would you be surprised to find out that word of mouth influences customer purchases about 83% of the time? Or that it’s directly responsible for 19% of sales? Knowing these numbers, would you then be even more surprised to find out that less than 1% of businesses reported having referral programs?

It’s no longer enough to count on the kindness of your customers’ hearts to refer your business to their friends or family, and these referrals certainly won’t come out of exceptional service alone. Your business needs to create and implement a solid referral program to grow and retain your customers. It’s arguably the most cost-efficient way to spread the word about your products or services.

What Are Referral Programs?

At its most fundamental level, referral programs are marketing tactic that helps to encourage your customers to become amplifiers for your brand. However, this isn’t about getting just anyone to become a customer. A well-planned referral program targets those leads who are the best fit for your business, meaning they’re much more likely to convert. In turn, this makes your other marketing strategies much more effective with much higher ROI because the leads are warm.

Here’s some more insight from John Jantsch, from his latest Duct Tape Marketing Podcast:

“If I’m trying to make a decision about hiring a company and all I’m doing is looking at their brochure or talking to a salesperson or looking at their website, I might be able to make an assessment. But if a friend of mine says, oh no, they do exactly what they said…Your ideal customers will probably refer to somebody who is more likely at least to be an ideal customer as well. And certainly shortens the sales cycle.”

Building Referral Programs

Like with any other digital marketing strategy, you’ll need to define the end goals. It could be the case that you want to grow your customer base or retain what you have or a mix of both, but regardless, your goals will help shape your entire strategy moving forward.

The next step is to flesh out your referral sources. Not only should current and past customers be featured on this list, but so too should vendors, industry leaders, and business partners, among other groups. It would be best to consider adding anyone you have a connection with to the list of potential referral sources. Choose the platforms and channels for your referral program accordingly; use the referral list to narrow down your channel choices.

With those variables dialed in, it’s time to deploy your referral program — which can look vastly different depending on those end goals you established early on. Contests based on the number of converted referrals are a popular and effective way to gather leads, as are giveaways and social gifting. Fundraisers, tiered loyalty programs, and exclusive events are also great ways to get more referrals for business growth. 

Don’t DIY It

Because referral programs are so deeply entrenched with the current digital marketing strategies your business has in place, it’s a wise idea to work with a marketing partner. If you’re ready to get serious about continuity, consistency, and results in your marketing, you need an experienced professional to help you build and deploy a marketing system to land your new best customers.

Our approach is different. Because we “Do It For You” with comprehensive marketing services for a set monthly fee. Our programs include fundamentals like building or redesigning a new website or integrating a referral program across your marketing channels.

Whether you want to look professional to prospective customers or employees who are “kicking your tires” or if you also want to gain a steady stream of new leads and phone calls generated from Google searches that lead to your website, we can help. Get in touch today to talk more about building your referral program — and your bottom line.

The post A Guide to Referral Programs appeared first on Cole Dalton.

Forecasting the Next Ten Years of Marketing

10 Apr, 2024
Marketing is gearing up for significant changes as we enter the new decade. With new technologies, shifts in buyer behavior, and changes in consumption culture, the way businesses reach out to customers will look very different in the coming years. While we can't say what marketing will look like in 10 years, we can examine emerging trends and strategies to forecast its future. Here are some predictions experts are suggesting could take shape moving forward. Increasing Personalized Advertising Personalized marketing should undergo even more profound transformations in the coming decade, leveraging advanced technologies such as artificial intelligence and data analytics to forge deeper customer connections. With the ability to glean insights from vast amounts of data, companies will craft highly tailored ads and messages that resonate with individual preferences and behaviors, fostering stronger brand-consumer relationships. From dynamic content customization to predictive marketing algorithms, the era of hyper-personalization will redefine how businesses engage with their target audiences on a one-to-one level. Advanced Device Communication The proliferation of voice-enabled devices and virtual assistants heralds a new era in consumer engagement, requiring marketers to adapt their strategies to communicate effectively through these mediums. As voice technology continues to gain traction, companies must anticipate the rise of voice commerce and tailor their approaches to accommodate this emerging trend. By leveraging conversational AI and natural language processing, brands can deliver seamless, personalized experiences that resonate with consumers, whether shopping, seeking information, or interacting with digital assistants. Wider Use of Virtual Reality Virtual reality (VR) is poised to become a ubiquitous tool in the marketer's arsenal, offering immersive experiences that transcend traditional advertising methods. With VR, brands can transport consumers into captivating virtual environments where they can interact with products and services unprecedentedly, fostering deeper engagement and brand loyalty. As VR technology becomes more accessible and sophisticated, expect to see a proliferation of immersive marketing campaigns that leverage the power of virtual experiences to captivate audiences and drive conversions.

The Power of Storytelling

12 Mar, 2024
Marketing tends to focus on analytics and systems, but we sometimes forget about one powerful tool that has existed since the beginning: storytelling. From our ancestors telling ancient myths to be passed down for the generations to come to modern-day brand narratives, stories have held the power to inspire and connect in all different ways. Today, consumers face a constant bombardment of advertisements and catered content; using the power of storytelling in marketing campaigns has become critical for businesses, especially smaller firms aiming to create meaningful connections with their target clients. Why Storytelling is an Effective Strategy When a brand uses storytelling to convey its message, it connects with the audience emotionally. By telling a compelling story, marketers can create a memorable experience for consumers, making them more likely to remember and engage with the brand. Additionally, storytelling allows marketers to communicate the brand's values and personality more authentically. Instead of bombarding consumers with sales pitches, storytelling enables brands to share their stories and build trust with their audience, increasing brand loyalty and customer engagement. The Emotional Resonance of Stories At the heart of storytelling lies its ability to bring out emotions and create profound connections on a human level. Unlike traditional marketing messages focusing solely on product features or sales pitches, stories can engage the audience's imagination, stir empathy, and spark genuine interest. By weaving narratives that resonate with their target audience's hopes, dreams, and challenges, small marketing firms can create a powerful emotional bond that transcends transactional relationships. Building Brand Identity and Authenticity Storytelling is a potent tool for small businesses to authentically define and express their brand identity. Through compelling narratives that reflect their values, mission, and vision, small firms can differentiate themselves from competitors and carve out a distinct identity in the minds of consumers. Whether recounting the founder's journey, highlighting customer success stories, or showcasing the company's commitment to social responsibility, storytelling allows small businesses to humanize their brand and foster customer trust and loyalty.

A Guide to Employee-Generated Content

13 Feb, 2024
In a world of "influencer marketing" and brand deals, companies can easily overspend their marketing budgets and get caught up in the frenzy. An influencer may feature your product or brand only for their videos to perform poorly. At best, you lose out on the money spent sending the product to the influencer and whatever you spent on hiring them. At worst, your business gets a bad reputation online, and customers don't take your brand seriously. Consider that influencer marketing is just the "shiny new toy" in marketing. In that case, companies should continue to produce consistent, cost-effective outcome. One source for this? Your Employees. Employee-generated content refers to any videos, pictures, or copy that employees publicly post about their position and the company. Find out the benefits of employee-generated content (EGC), what this content can look like, and how to implement EGC into your overall strategy. What Does Employee-Generated Content Look Like? The beauty of employee-generated content is that it can take many forms. Any content your employees make that involves details about their role, the company itself, or the relationships they've developed with coworkers or customers/clients can be EGC. A simple, straightforward EGC piece can be an employee spotlight for new hires or veteran employees. You can choose to craft employee spotlights as infographics with a picture of the employee along with some fun facts about them, write a long-form piece from an interview with the employee speaking about their time at the company, or even long or short-form videos with the employee speaking on their experiences. While these methods may require the help of a graphic designer, copywriter, or videographer, the idea is that the employees generate the content by speaking about their experiences and introducing themselves. Other ideas for EGC pieces might be "day in the life" videos following a specific employee throughout their day, reflections employees have from conferences or professional development opportunities, employment milestones or recognitions, or even just pictures employees take with each other or showing what happened that day. There are limitless options and iterations for employee-generated content, and the key is to find out what works well for your business and why.
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