Most Common Referral Marketing Mistakes
One of the world’s oldest and most effective channel for acquiring customers is referral marketing. Referral marketing is a highly popular technique used by business houses because they are cost effective and have high returns. To be successful in referral marketing, care should be taken to avoid the following mistakes:
1. Waiting For A Strong Customer Base
Start referral marketing with the list of contacts that you have, even if a small one. In fact, the earlier you start, the better are your chances of acquiring new customers. Referral marketing should go hand in hand with all other marketing strategies such as SEO, inventory management, inbound marketing etc. It’s never too early to start referral marketing.
2. Taking Existing Customers For Granted
Many companies make the mistake of taking their existing customer base for granted. They forget the importance of constantly communicating with them regarding their product or service. For a referral program to work, you have to create opportunities to get in touch with loyal customers.
3. Being Selfish With The Rewards
Many people think of it as a great idea to incentivize customers with account credits or discounts for purchases they make in future. However, a better approach is to reward customers who have sent referrals with cash or gifts. You can also try dual incentives whereby you reward the customer and their friend too. It works to accelerate sharing.
4. Small Scale Referral Programs
Successful referral programs never start small. They just take the plunge with all the risks involved. You cannot limit yourself to the safety of just a few customers that you know. You have to involve potential customers as well. The program should be an expansive one that’s open to everyone.
5. Lack Of Patience
Patience is pivotal when it comes to referral marketing. Don’t give up. It’s a process that takes time, effort and some investment. You will learn many things that work for you along the way and drop those that don’t. Eventually you will find yourself on the right track. It’s just a matter of time. Stick to your plan and stay focused on your goal.
6. Referral Programs That Are Difficult To Use And Find
For a referral program to be effective, it should be a public facing one. It should not be restricted to your current customers but should also include anyone else who might be directly or indirectly interested in your brand.
Starting and running a referral program is just the beginning. You need to channelize your referral marketing program in the right direction for future referrals. For more information, call (281) 778 - 6661 or visit our office at 11 Tayside Track, Missouri City, TX 77459