Use referral marketing strategies to
increase customer retention

Referral marketing is a very effective way to attract more potential customers to your business by leveraging your existing client base. Learn how you can use referral marketing strategies successfully in growing your business.

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Humans are social by nature, so it's instinctual that we share our experiences with others when we get the chance. When we have a good experience, we’re very likely to tell our friends and family about it, and this is a little like the most basic idea based on which referral marketing works.

One of the reasons referral marketing works is that most people trust information that comes from real people who are often close to them rather than from a brand. When people hear about a brand from someone they know, they’re more likely to engage with the brand since it was referred to them by a trusted source.

This is why it’s important that your business, regardless of which industry you belong to, leverage referral marketing strategies to grow your client base and build more customer loyalty.

referral marketing

Why is referral marketing so important for businesses?

According to a recent study, customers who were referred to a business have a lifetime value that’s 16% more than that of a regular customer, meaning that these customers bring in more revenue over time than those who were acquired by other means.

Referral marketing establishes “social proof”, which means that when people hear about a brand from the person they know, they feel that they can trust the brand and become more willing to engage with it or make a purchase.

Also, referral marketing can often lead to higher conversion rates as compared to more traditional methods of advertising. This is why referral marketing is so powerful—it bases itself on trust, which is something that most humans value, to sell a product or service.

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How to use referral marketing strategies to grow your client base

Here are some strategies for referral marketing that you can use to bring in more customers.

Ask when the time is right

To increase your chances of getting higher referrals, you need to ask your customers at the right time. The best time would be after a customer gives a review, makes a purchase, or speaks highly of your brand on social media.

Create an online community

A good way to get your customers to refer your brand to others is by fostering an online community. One way to do this is to establish an online forum where customers can talk to each other about their experience with your brand.

Give your customers an incentive

Customers simply liking your brand won’t be enough in some instances for them to refer your brand—you might need to give them an incentive to do so. Try offering them a reward for referring your brand to their friends and families.

Simplify the referral process

A great way to get your customers to refer your brand is to simply make the referral process easy. Break down the process into a few simple steps and avoid asking them to join a referral programme, because most of them won’t.

How to use referral marketing strategies to grow your client base

Here are some strategies for referral marketing that you can use to bring in more customers.

Ask when the time is right

To increase your chances of getting higher referrals, you need to ask your customers at the right time. The best time would be after a customer gives a review, makes a purchase, or speaks highly of your brand on social media.

Create an online community

A good way to get your customers to refer your brand to others is by fostering an online community. One way to do this is to establish an online forum where customers can talk to each other about their experience with your brand.

Give your customers an incentive

Customers simply liking your brand won’t be enough in some instances for them to refer your brand—you might need to give them an incentive to do so. Try offering them a reward for referring your brand to their friends and families.

Simplify the referral process

A great way to get your customers to refer your brand is to simply make the referral process easy. Break down the process into a few simple steps and avoid asking them to join a referral programme, because most of them won’t.

Should I work with a digital marketing agency?

Referral marketing can be tricky, but not when you have a reliable digital marketing agency working for you.

A good digital marketing agency will bring valuable knowledge and expertise, and also innovative marketing tools to help you create a winning referral marketing strategy that is tailor-made to your business requirements and will help you boost your customer base significantly.

Hype Insight’s team of knowledgeable and highly experienced digital marketing experts will help you devise the ideal referral marketing strategy to bring in more potential customers and grow your customer base.

From research to creating email campaigns, we know all the proven tactics of the trade when it comes to exciting customers and building loyalty towards your brand. Get in touch with our team and kick off your referral marketing campaign today!

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Can referral marketing strategies work with other marketing strategies?

Yes, it can. Referral marketing can go hand in hand with influencing marketing, social media marketing, and content marketing.

How can the success of referral marketing programmes be measured?

This can be done by tracking a few key metrics, such as the number of referrals, the lifetime value of referred clients and conversion rates.

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How can the success of referral marketing programmes be measured?

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Today, companies across the SaaS space are struggling to stand out from their rivals due to the rapid growth and popularity of the industry. This demands a foolproof plan to stand out from the competition and make your brand seen by your target audience.
And that’s where SEO plays a significant role.

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