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A Quick Guide to Referral Marketing Strategies


If you don’t have a big budget set aside for promoting or marketing your products or services, don’t worry as there are other ways to attract new customers. Referral marketing strategies are cost-effective methods that can help you get new customers for your business. Market research has shown that a client secured by a referral program is usually loyal to your brand and product. Here are a few strategies to generate more referrals.

Seize every opportunity

According to John Jantsch, author of “The Referral Engine,” people can’t stop themselves from recommending products they have used and are satisfied with. So, as a business, you should take advantage of this urge by immediately asking your customers for feedback and then ask them to suggest your product or service to their friends or family. More often than not, they will gladly refer you to their contacts. These contacts are more likely to give your product/service a chance as you’ve been recommended by a trusted source. Typically, such contacts would be aware of your product’s price and features as they would have discussed these aspects before deciding to approach you.

Referral reward programs

If your asking nicely is not getting you any referrals, you might have to resort to something more creative to get the results you want. In John Jantsch’s “Duct Tape Marketing,” he suggests setting up a referral reward program where customers are rewarded for any new customers that they bring in. To get them interested in your program, make sure that the incentives that you are offering are worth their while. Vouchers, free merchandise, discount coupons or freebies will definitely grab your customers’ attention and make them want to send new customers your way.

Targeting similar businesses

One way to expand your database of existing customers is by joining hands with other non-competing businesses to promote your products or services. In return, you may have to refer their business to your customers or pay them a certain amount for every customer that they recommend to you.
Once you get your referral marketing strategies in place, you may not feel the need to hire costly marketing firms again.

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