As we discussed in a previous post happy customers tell their friends who then become customers. Another way to word that is referral marketing. Not sure how to start referral marketing? We found this article that we know will help you and your company bring in lots of referral business. We hope it helps!
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From the article:
Study after study has proven that referral marketing is one of the best forms of marketing when it comes to sales and conversions. Simply put, referral marketing, sometimes also called word-of-mouth marketing, is just people purchasing products based on someone else’s opinion or influence. It’s a powerful marketing channel because people trust the opinions of other people in their lives and people they respect, whether that be family, friends, social media influencers or big stars.
It makes sense, we regularly get advice from our friends on which TV shows to watch, movies to rent, or restaurant to go to. And, as end consumers ourselves, we wan’t to share our stories, the products we buy and the brands we choose. This becomes magnified when the buying experience and products are exceptional.
In this post, we will show you the three fundamental reasons referral marketing is so powerful, some examples of extremely successful referral campaigns, and provide you with seven tactical steps to build a powerful referral marketing engine for your business.
Let’s jump into it.
Why Is Referral Marketing So Powerful?
We know that word-of-mouth and referral marketing is powerful and is continually rated as one of the most powerful forms of marketing, but why?
Let’s take a look at three core reasons for this:
1. Precision Targeting
Have you every tried using Google Adwords or Facebook Ads just to watch your money disappear, literally before your eyes? Many times this isn’t the fault of the platform, rather your targeting. A great marketing campaign involves two key components, a great message and laser targeting.
Referral and word-of-mouth marketing tend to be much more targeted because people tend to know their friends and social audiences pretty well. This allows your brand message to spread more effectively than with most other marketing channels.