header image of the blog title "Planning a Referral System: 4 Effective and Easy Tips to Remember" with wall of faces with 3 persons sitting on a wooden bench in side a white room
header image of the blog title "Planning a Referral System: 4 Effective and Easy Tips to Remember" with wall of faces with 3 persons sitting on a wooden bench in side a white room

4 Easy Tips to Remember When Planning a Referral System

July 20, 2018 Customer Referrals, Marketing, Marketing Automation, Marketing Tips, Online Marketing, Referral Marketing 0 Comments

Who doesn’t want referrals? Imagine your business having no referral marketing strategy? NIGHTMARE! Most businesses thrive and grow through referrals. And, both marketers and business owners agree that referrals are very very very important for the success of a business. Word of mouth has been one of the most powerful means to expand a business, and it still is, especially now that we have come to the digital era when sharing information and experiences is only one or a few clicks away.

But let’s face it, asking for referrals from your customer can be a little awkward. You might come as pushy, or worst, desperate. And you might have already done so much effort on your referral strategies, you’ve already given up. Not just yet.

To get your referral business growing and going, you need to be in your customers’ mind. You need to stay on top of their list of businesses to turn to whenever the need arises. So you need to establish a great relationship with your customers because if you maintain this, chances are, they won’t forget about you.

4 Things To Remember in Planning Your Referral System

Quality customer service and great customer experience.

In order to start leveraging referral to grow your business, you need to be referable. But, how can you do this? Yes, through quality customer service and great customer experience. A happy customer can be a happy referrer. When a person experiences something good and remembers it, sharing comes naturally. So you need to design or deliver your products and services to be actually worth shareable. For instance, if you came to a spa that had great spa services, you will absolutely recommend this to your friends and family members. Your clients will speak for the value you have provided for them.

Customer service and experience can make or break your referral business. Go the extra mile in keeping your clients satisfied so they would never think twice of recommending you. Recommendations from a friend or a family are seen to be more sought after than the recommendations you see from advertisements. A delighted customer will be happy to recommend you.

Get creative and get the right timing.

Asking for a referral doesn’t have to be all boring and awkward. You need to be creative. One example is celebrating milestones with your customers – maybe an anniversary of their membership or just a random “IT’S YOUR 50th TUESDAY WITH US!”. And, there are always holidays on the calendar. But, if you want to be remarkable, you can create your own “holidays” to avoid the common holiday marketing traffic. Celebrate with your clients so that they can remember you.

Another thing to consider is the timing. Yes, timing is important in asking for a referral. So, when is the best time to ask for a referral? It is when you have established a relationship with your client strong enough to safeguard belief and trust. Each business has a unique “time” for when it is ideal to ask for a referral, what is important is you prepare your clients for this. You need to get a hold of moments when they are most happy and satisfied with your products/services and harness this satisfaction into a referral move.

Apply the Win-win-win System.

Yeap, you read that right. It’s a triple win. What’s better than a win-win? A win-win-win! If your product is good, you get referred. You get a referral, and your customer-referrer gets the satisfaction of referring you and the new customer referral gets to try your products/services. Everybody wins.

Sometimes, your customers referring your business is not always after incentives but simply for the fulfillment of helping somebody through your products/services. But, most of the time, it will be: What’s in it for me? You can always encourage referrals through incentives. You can always offer a little push to your customers to refer you. Understand what amount of incentives your customers need and what will be meaningful.

You can also implement a referral program where your customer-referrers can jump into, like a “member’s club.” This level of exclusivity will urge customers to make more referrals. It can be another marketing expense, but it can cost lesser than any other marketing strategy.

Make it easy.

Easy for your customers and easy for you. Add social share buttons to your websites so your customers can easily share or refer you to other prospects. Include links on your emails so people can easily click on it and go to your webpage.

You also need to be ready to guide them. For instance, if you can, you have to be specific on what type of referral you want your customers to do, e.g. review, social media share, testimonials.

How can you make referrals easy for you? Automate your referral system. An automated referral system can help you manage and keep track of the process. It can help you monitor what the participants are doing and whether or not they are still referring. An automated referral system can also be used to automatically send referral rewards to your customers who continued referring your products. Automated referral programs make sure that the system is quantified. In other words, the system will crunch numbers for you and all you have to do to strategise.

Conclusion

Referral can come from almost anywhere- a friend, a family member or a delighted customer. You need to harness this for your business. A referral system can really help in expanding your business. Investing in a good referral system can go a long way. There are many benefits your business can enjoy through a great referral system – low cost-per-acquisition, customer trust and relationships, and higher sales and revenue. With automation, you referral marketing can be easy and effective at the same time. Invest your time in studying your market, designing a referral system that will work for your brand and strategising ways to make your referral business powerful. Take note of these tips when planning your referral system, and in no time, you’ll be the talk of the town. Save your time and grow your sales opportunities easily with CRM Singapore.

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