5 Reasons Why Social Sites Are Your Referral Marketing Ultimate Weapon
Referral marketing is one excellent marketing tactic. It is a great way to tap to your existing customers to recommend you, and spread the word about you, thus, creating more customers. More customers, more sales. But, what other simple, but effective can you use to grow your sales, expand your business and help your business thrive? Leveraging social media sites for referral is not just effective, it’s also easy. Referral marketing strategy and social media is the combo you should put effort into taking advantage of.
Why Use Social Media For Referral Marketing?
The answer is trust. Referrals from a trusted source are considered more believable. For instance, if a friend recommends you something to use or buy, you have a higher chance of making the purchase based on your friend’s recommendation, than plainly seeing or reading it from somewhere. And, where else can you reach or find the people who have tried your brand? That’s right, social media! It’s the easiest way to communicate with a network, whether friends, families or people with the same niche.
Social media is one big avenue for referral traffic. This is because a vast majority of your customers are on at least one social media platform. Other than the advantage of your existing network, here are 5 reasons why social media sites are a great way to leverage referral marketing.
1. Increased social proof.
Referral is a good avenue for persuasion. According to a recent study, 90% of respondents who said that reading positive online review affected their purchasing decisions. Social proof is a powerful tool and can be derived from social media. A referral that comes from a trusted resource is more likely to get checked out. People share, comment, and give reviews through social media, and these are things that can surely be of help to your business. Your existing customers all have the potential to advertise your business for free, through sharing. And if your customers share and talk about your brand, this can reach a larger network creating new potential customers. It builds a social proof. It’s a snowball effect.
2. Higher chances for conversion.
The snowball effect of creating a larger network. If an existing customer posts and talks about you, people with the same interests and demographics will see it, too. You will reach many potential leads and customers because of one existing customer – an unofficial brand ambassador, who’s using your product/service- did a mini advertisement for you. Every blog you post gives you the chance of being stumbled upon by old, current and new customers – giving you higher chances of conversion. Therefore, you should make your social media presence as a human and as authentic as possible. Interact with your audience and communicate with your prospects and leads.
3. Easy sharing and reduced marketing cost.
Social media has been one of the most cost-effective marketing platforms over the years. Again, your existing customers can be your free advertisers. More and more people are using social media every day and for the past few years, the numbers are not slowing down. Word-of-mouth naturally happens in social media because people share and reposts, it’s helpful and it’s easy to do. That small thumb and share arrow button at the bottom of your post can make a lot of difference. You can, therefore, reach a bigger audience without having to spend a lot on advertising. Furthermore, your business’ social media presence tweaks the interests of present customers and can serve as a reminder of past ones. You should use social media to increase chances of referral because chances are, your competitors are already doing so.
Social media can also allow you to target your audience, thus, putting your efforts to customers and refer you to people with the same interests and demographics. This will increase your potential for conversion.
4. Building relationships.
Getting to know your customers is important for the success of your business and what better way to do this than to talk with them. And how? Through social media! When you get know your customers, talk to them, respond to comments, ask for suggestions through reviews and feedbacks – these are organic ways to build relationships with your consumers. You should develop authentic engagement. You need to view social media, not as a tool to pitch your product/service, but a way to connect with your consumers.
Social media can also be a tool to connect with other businesses that offer related services and products. They can be sources of shared content that will benefit you and other related businesses. And in no time, you will not just be a business, you will be part of a community.
With this being said, they, in return, a community continues to build trust and loyalty for your business thus paving a way to increased chances of referrals and awareness.
5. Build brand loyalty.
Social media is a perfect way for your customers to recommend your brand. Your loyal customers can be your brand ambassadors and can advocate your product to other people. A report from Texas Tech University stated that companies that have solid social media presence tend to maintain loyal customers.
With different effective strategies, such as referral rewards, you can keep current customers, make new ones and at the same time, build your market share. It doesn’t have to be expensive. A small token of reward can make your customers that they are valued and be more inclined to refer you. You get the best of both worlds.
Social media can build a perception of your products/services, and since it is a platform to create a network, it can significantly influence the impressions of potential customers. It is therefore crucial that you solidify and improve your social media presence so word-of-mouth can come naturally. With social media, you can make your customers feel that they are valued and cared for. By using the appropriate and effective tools such as marketing automation and CRM Singapore software, social media can be your referral marketing’s secret weapon. More referrals, more chances of conversions. More conversions mean more sales.