- Post By : Michael Smith
- On : October 4, 2016
Word-of-mouth marketing is still as effective as ever. According to a study conducted by Nielsen, people are four times more likely to purchase something if it’s been referred by a friend.
Offering an online customer referral program is one of the easiest ways to boost your sales, and while it might seem like a lot of extra effort, you’ll be surprised at the incredible results you’ll see if you do it right.
According to Texas Tech, 83% of consumers are willing to refer after a positive experience but less than 29% of them do. So what can brands do to change this around?
If you already have an online referral program in place and you’re looking to see better results or you want to get it right from the get-go, below are just some of the most common mistakes to avoid.
Mistake 1: Your Customers Don’t Know About Your Program
If the details of your referral program are not easily accessible from your home page then chances are your customers aren’t going to know about it and it won’t work. Along with placing the program’s details on your website’s homepage, it also helps to market your referral program on your social media pages as well as your newsletter if you have one. Greater awareness = More referrals.
Recommended Read: Getting Customer Testimonials to Work for You
Mistake 2: Not Giving Your Reward Proper Consideration
How are you rewarding the customers who refer new customers to you? Rewarding customers with just anything isn’t going to cut it. If you truly understand your customers, their interests and their browsing habits, you’ll know what’s most important to them and what reward they would find hard to resist. There are countless ways that you can reward your loyal customers but make sure that it’s something unique and relevant.
Mistake 3: Not Testing Your Program
There is no one-size-fits-all solution to referral programs. This is something that you need to keep a close eye on, stay committed to and most importantly, test. Just because your first approach to customer referrals didn’t work doesn’t mean it’s not for you. Try out different rewards and change up the way you present and promote your program before you call it quits.
Mistake 4: You Haven’t Laid a Solid Foundation
If your brand hasn’t been very active online and you suddenly decide to implement a referral program, you might find that the uptake is pretty slow. In order to encourage referrals, you need to have built a solid foundation with your customers to begin with. Customers need to see that you’re engaged and always there to assist before they’ll think about referring you to the people in their social circles. Having a good product or service is a great start but showing your customers that there are people behind your brand goes a long way.
Recommended Read: Landing Page Copy That Converts
Mistake 5: You’re Not Making Customers Feel Secure
A referral program generally involves a lot of personal details so it’s important for you to be transparent about what details you’ll require and how you will be using them before a customer will think about handing them over to you. Make your customers feel secure knowing that their contacts’ personal details won’t be used incorrectly if you really want to increase your referrals.
Referral marketing is so powerful because of the strong sense of trust we have in our family and friends. It’s up to you as a brand to build on that trust if you want to truly succeed at online referral marketing.