Referral marketing is not as easy as you might think.
A business looking at customer referral programs often has lots of questions to ask such as: Will it work for our business? What kind of ROI can we expect? How different is it from any other marketing campaign? Will our customers take part? What are the mistakes we should avoid?
Referral marketing is one of the most successful techniques that companies can employ to ensure they stay on top of their market. And many iconic companies like Uber, Airbnb, Dropbox and Netflix, owe much of their incredible initial growth to supercharging natural word of mouth with a referral program. But a mistake that we think many of these titans have made, is in not realising that no brand is too big for referral marketing and, once they have become established household names, they have often failed to update and upgrade their referral program to support the continued growth of their business.
Trust is one of the most important factors in maintaining a successful relationship with your customers. It can boost sales, give your company an edge over the competition, but above all – it is the driving force behind brand loyalty.
The problem is, brand-customer trust cannot be established with the press of a button. With all the spam and phishing scams floating around, how do you let your audience know they can feel secure and comfortable doing business with you?
At Buyapowa, we see many digital marketers wondering what is the difference between affiliate, influencer and referral programs and which is best to help boost sales via word-of-mouth.
While all of these can be genuine forms of word-of-mouth marketing (although affiliate marketing may have nothing to do with word of mouth, and can be can be click arbitrage or other forms of marketing etc.) they differ from each other in a number of ways. For retailers just starting out, the terms can be easy to mix up. And even experienced marketers can struggle to understand the best time to implement such a program and the relative benefits of each. So which program is best for your business?
Your customers are the lifeblood of your business. Frankly, while you can have a fantastic team, a great catalogue of products, and an amazing business plan, but none of this will matter if you can’t keep those customers happy, engaged, and willing to tell their friends good things about you. Quite simply, in ecommerce, your customers are arguably the most important and effective sales tools you have at your disposal today. That’s because, when your customers talk, their friends and family listen. So you could spend your entire marketing budget on precisely targeted Facebook ads, compelling email campaigns, and clever CRO tests, but you’d probably be better advised to get loyal customers — or brand advocates – to convince a friend or family member that your products are worth buying.
The popular belief is that referral marketing is a sledgehammer, something you deploy to get masses of new customer acquisitions in one big slam. But, here at Buyapowa, we know it can be much more surgical than that – less a sledgehammer and more of a scalpel; something you can deploy in very specific ways to achieve very specific goals.