Referral marketing is the new type of word-of-mouth marketing. Customers are encouraged to share a link with people they know in exchange for some form of incentive (gift, discount, or offer).

Many reports show that the level of trust given to content shared by individuals is rising.

Referral Marketing: How to Create A Successful Strategy

Stats show that 90% of Americans trust product and service recommendations from friends and family.

These days many brands and businesses are using the power of their current customers to get new ones with the help of referral marketing.

Advantages and Tips of Referral Marketing

1. High Level of Trust

Instead of publishing the information on your website or social media, your customers now become the medium that delivers your message to people who know and trust them. That personal connection will make them listen to what your customers have today.

2. Increase Sales

Your customers will choose which of their friends and family will most likely purchase your products or services. So you can increase your sales with the help of your customers.

3. Improve Your Strategy

Referral marketing software programs can help you to create your referral marketing campaigns, making the whole process more straightforward.

Also, these software programs provide you with analytic reports so you can track your campaigns and help you to improve your referral marketing strategy.

4. Improve Customer Experience

You can help your customers to receive discounts at their favorite stores and provide a great experience. Your business should offer an incentive that will improve your customer’s experience based on your product or service.

5. Use a Double-Incentive Referral Program

A double-incentive referral program means that you reward your customers when they refer someone to your business and also you reward the people who take the prescribed action.

You can increase the virality of your referral program without risking it becoming too spammy.

When using a double-incentive program make sure that you match the incentive you offer with what you’re asking your customers to do for you.

6. Use Analytics – Track Your Referral Program

You need to track your referral program to see if it helping you reach your goals.

You can use Google Analytics or a similar program to help you understand where people visiting your site are coming from.

Also, with analytics, you will get a clearer picture of your referral marketing program’s performance. Some of the performance metrics you need to know.

Conversion rates, Email click-through rate, Lead generation rates, etc.

Last Tip

Referral marketing programs are an effective way to gain your target market’s trust and increase your sales.