5 tips for effective referral marketing
"Heyy! Last week I bought these new jeans at coolfashion.com and they are the best :-)" "Really? What was their website again? Definitely going to check them out too. How was the rest of your weekend?"
Sounds like a conversation you might have or a simular conversation with a product or service you actually like. It's called the "power" of word of mouth marketing. It is basically a targeted recommendation directly to the peers of your happy customers. When done right online you get unboxing video's on Youtube with a referral link in the description. Are you looking to set-up your referral system? Here 5 tips to unlock the power of word of mouth marketing;
1. One click
If you are going to ask your customer something to do for you, make it as convenient as possible. Every step in an online process is a conversion killer. Less steps means a higher conversion.
2. Clear call to action
It should be clear in a split second why your customer should help you grow your brand. With the average concentration span dropping year over year it is important for marketeers to make sure your "call to action" is spot on!
3. Looking good
Stay sexy at the bar. Make sure you look good and attractive. Your message should not only be clear but also attractive. A good way to get this right is starting with A/B testing. You will improve your conversion-rate rapidly when you do this right.
4. Don't be cheap
In general, if you are able to reward your customers for their support the better it works. This does not mean you should spend a lot of money on it. Rewards can be determined in many ways. It could be higher status (ranking) or loyalty points etc. A first step to determine your reward for attracting new customers is knowing your Customer Lifetime Value (CTV). In other words: if you know how much you will be making on a customer lifetime you know how much you can invest to attract new customers to grow your company.
Timing is everything. So when and how should you activate your customers to spread the love? Make sure that you activate your customer when you are relevant. For example directly after the purchase, when they received your service or product or when they engage with your content.