Referral Marketing Mistakes To Avoid
Referral marketing has always been one of the most effective ways of acquiring new customers for any business. Even the most established entrepreneurs follow this practice to improve business networking and generate consistent leads. Some of the ways in which this advertizing technique can be beneficial for your business are:
- Help to reach out to a larger pool of target audience by promoting your products in front of leading business owners and industry influencers.
- Build customer satisfaction by advertizing your products through someone who has already established his credibility. This, in turn, boosts the customers’ trust in your business and increase the chances of a conversion.
- When a business is referred by a renowned entrepreneur or networking professional, it is more likely to generate loyal customers. This, in turn, translates into higher sales and consistent profits.
- Well-planned and constant referral marketing efforts can get high quality leads for your business.
Minimal investment of time and money allows for a cost-effective marketing of your business.
Making your referrer group promote your products/services increases brand awareness among the target audience.
However, if you fail to implement referral marketing program in the right manner, it may not yield the results that you are looking forward to.
Given below are some of the mistakes that you need to avoid to ensure that your referral marketing strategy is a huge success.
Not rewarding your customers for the referrals
You should always reward your customers when they refer your business to someone. Entice them to provide further referrals by giving discounts or special offers on your products/services. The reward should not be delayed, provide them as soon as possible after they give you the referral. Also, make sure that the reward is something that holds value for them.
Adopting a sales-only approach
When asking for a referral, starting with a sales pitch right away can be a big mistake. Rather, you should focus on gaining the trust of your referrers, whether they are your customers or fellow entrepreneurs. Instead of directly embarking on the promotion of your products/services, start by knowing your referrers, what they do, their business offerings, interests etc. Building trust and assuring your referrers about the credibility of your business is the key to a successful referral marketing program.
Not sending out the right message
The harder you make you referral program to be understood, more are the chances that your customers will avoid it. Make sure you send out the right message to your referrers so that they know what exactly they are going to get in return. Provide them complete information about your company, products/services, their usefulness, USP of your brand etc. that gives them a reason to promote your business further.
Not identifying your ideal referral
Though getting a higher number of referrals seems great, they still need to be qualified to ensure that they are actually interested in buying your products/services. Accepting everyone as a good referral may not be the right strategy for your business. You must take the time to identify your target audience in terms of age group, demographics, gender and other such parameters. Let your referrers know about this criterion so that they are able to get only quality referrals for your business.
Not being consistent in your efforts
Referral marketing is a long term process. You need to patient and keep up with your efforts. If your referrer group is not able to get you quality leads right away, you must not refrain from trying. Target the same people again and again as you do not know when they come across someone who can be a great referral for your business.
We, at Houston LEAD, organize referral marketing program for business owners across Houston, TX. For more information, you can call us at (281) 778 – 6661 or visit 11 Tayside Track, Missouri City, TX 77459.