How to get a constant flow of new customers?
If business owners could have one wish magically come true, it would be having a constant flow of new customers.
The equation is simple: more customers = more income.
Unfortunately, acquiring new customers has never been more challenging.
According to ProfitWell, customer acquisition costs have increased by 60% since 2014. Research by Zenith media shows that companies will spend around $873 billion by 2024 on digital ads.
But the problem with creating an acquisition strategy around paid ads on Google or social media is not only the high cost of ads.
It’s human behavior.
What do you do when an ad pops up in the middle of your favorite song on YouTube? You get annoyed, and you can’t wait the obligatory 5 seconds to pass before you can close the ad. And you do that even if you like that brand.
So how can you create a customer acquisition strategy that will not only help you attract new customers but also won’t cost you an arm and a leg?
A referral marketing program might be the golden egg you’ve been looking for
The reason why referral marketing is so powerful is that it’s based on word of mouth. And there’s nothing quite like word-of-mouth marketing.
When someone you trust recommends a product or service, it carries a lot of weight. After all, if your friend tells you about a great new restaurant, you’re much more likely to check it out than if you saw an ad on Facebook.
It’s one of the best ways to build trust and credibility with potential customers and attract new ones. And studies found that 84% of people trust referrals from someone they know.
That’s why we are sharing the ultimate checklist that will boost your referrals.
But before we dive in, let’s check some of the most common mistakes people make with their referral program.
Most common mistakes business owners make when it comes to referral marketing strategy
People don’t know about your referral program and rewards.
Referral programs are a great way to show your most loyal customers that you appreciate them. Let them talk about how much they love your product or service by asking them to refer their friends or family. Everyone loves a good recommendation.
You don’t offer referral rewards or your rewards aren’t exciting enough.
It’s easier to motivate people if your rewards are meaningful and desirable to your target audience.
It’s hard for people to share your offers with friends and family.
Nobody has time to figure out how your referral system works. Remember to keep it simple and make it convenient for your existing customers to recommend your products or service on their mobile phones.
You don’t provide exceptional service.
No matter how amazing the rewards are, people won’t recommend something they don’t really like or are not satisfied with. No one wants to look like an Instagram influencer who recommends something that is obviously not working.
The Referral Booster Checklist
There are few things you can do if you want to improve your referral program and skyrocket your referrals easily and effectively.
Check out these following steps to find out what might work best for your business.
1. Test referral rewards
When creating a successful referral program, it’s important to remember that what works for one business might not work for another. So don’t be afraid to experiment to see what works best for your business.
By trying out different approaches, you can figure out what motivates your customers and what doesn’t, and you can adjust your program accordingly. Additionally, testing different rewards can help you figure out what provides the most incentive for your customers to refer new people.
Feel free to experiment with different rewards until you find the perfect mix that encourages people to promote your business.
Pay attention to the data. With Referrizer, you can easily see if your referral program is working by observing the increase of shares and referrals in analytics.
2. Add a welcome email or a text message
Welcome email campaigns and text messages are a great way to introduce your referral program and rewards to new subscribers.
By sending a welcome email or a text, you can quickly engage new subscribers and encourage them to take part in your referral program. Plus, by including information about your referral program in the email, you can increase the chances that new subscribers will be successful in referring friends and family.
Another benefit of email marketing is that it allows business owners to target specific groups with their messages. For example, you can target people who live in particular zip codes or have specific interests.
With Referrizer, you can easily craft your welcome sequences and see how many people opened your email, clicked on the link, and signed up for the referral program.
You can also create and easily send a unique text message to your new customers.
The platform keeps track of your data, so you can easily view it in just a few clicks.
3. Send automated SMS and emails messages
When it comes to referral programs, automated text campaigns can be a game-changer.
Why?
Because referral programs are all about building relationships.
By using automated text campaigns, you can stay in touch with your customers and keep the lines of communication open. This way, when it comes time to ask for referrals, your customers will be more likely to say yes.
Automated text campaigns also allow you to track the performance of your referral program. Just like with the welcome email, you can see how many people click through to your landing page and how many sign up for your referral program. Not every landing page will perform the same, though. Learn how to make the perfect one for your next referral program.
This data is essential for understanding what’s working and what’s not. Without it, you’ll be flying blind.
Automated follow-ups also make it easy to show your appreciation. For example, a quick “thank you” email after someone visits your business is a great way to start building relationships with your customers.
4. Create a flyer to promote your referral program
Any marketing campaign is only as successful as its reach, and a referral program is no different.
But what should you do if your existing customers don’t spend much time online?
Then good old flyers are the answer.
A well-designed flyer can help ensure that potential customers are aware of your referral program and its benefits. You can encourage customers to participate in your referral program and spread the word about your business by including a call to action and clear instructions.
Be sure to put a flyer in a visible place like the front door of your shop or near a cash register, then it will be easier for your existing customers to notice the benefits of your referral program.
Think about where your potential customers like to spend their time when they visit your business.
5. Combine your referral program with your loyalty program
You can kill two birds with one stone if you have a loyalty program. If you don’t have a loyalty program, check out this article to find out how to use a loyalty program to boost engagement.
Encourage the members of your loyalty program to promote your business on their social media or to their friends and family to earn points or rewards.
With Referrizer, your customers can easily promote your business and earn rewards: everything is done in just a few clicks.
And the best part about using Referrizer is that the platform keeps track of all your referrals and rewards which saves you time
A study showed that 62% of customers make one referral. So don’t hesitate to offer a referral program to your customers because people love sharing things they are excited about and getting rewarded for it.
We hope this referral marketing checklist has given you some ideas on how to get started with your own program and has shown you that referral marketing isn’t as daunting as it may seem.
If you want to learn more about how you can set up your referral marketing program, check out our other blog posts, or contact us today for help getting started.
We can’t wait to see your referrals skyrocket!
