Referral Marketing

Referral Marketing

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  Referral Marketing Name: HarshaTherani Subject:EmergingTrends of Marketing Batch: PGDM 2017-19 Roll No.: 201760
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  Introduction ▪ Referral marketingis a method of promoting products or services to new customers through referrals, usually word of mouth. ▪ Such referral soften happen spontaneously but businesses can influence this through appropriate strategies. ▪ A referral promotion entices Fans to earn a reward in exchange for referring their friends.
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  Types of ReferralMarketing ▪ Online Referral Marketing: Online referral marketing for professionals uses various forms of internet marketing to gain third party endorsements from people you may or may not have met yet. Examples: Social media, referral direct through websites, e-mails. ▪ Offline Referral Marketing: Offline referral marketing refers to ways you can increase your client base or patient load by getting third party endorsements without the use of the internet. Examples: Colleague's newsletters, public speaking engagements, postcards and letters, as well as direct verbal recommendations.
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  Benefits of areferral program ▪ Reducing your sales budget by focusing on customers who are satisfied with your products and services. ▪ Increasing your sales cycle by generating leads within the scope of your satisfied customers’ circles of influence, a better way to spend marketing dollars than cold calling. ▪ Quickly generating more satisfied customers, ensuring a continuous cycle of repeat customers and referrals. Have some humanity. ▪ Improving sales revenue, offering a higher conversion rate than unqualified sales leads. ▪ Generate a better overall ROI from your marketing strategy.
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  Referral Marketing Strategies 1.Asking for referrals: This simple and effective strategy involves mentioning a referral program to as many customers as possible. A computer repair company used this strategy effectively by stamping “We Crave Referrals” on every paper customers received—including newsletters, marketing material, and invoices. 2. Employee training: In conjunction with asking for referrals, many companies have a training process that equips employees with the knowledge to effectively market the referral program to each and every customer. 3. Joint venture referrals: Some companies partner with complementary businesses to cross-promote to each other's customer bases. This strategy involves each business offering discounts or other incentives to customers from the referring company, typically in exchange for a percentage of sales from referred business.
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  Conclusion ▪ With therise of social media, every consumer has become a publisher capable of reaching a targeted audience. Companies have a tremendous opportunity to use referral marketing to drive sales and awareness while gathering new customer insights, and increasing engagement with current customers. ▪ By powering referral programs across multiple verticals, Buzz Referrals is in a unique position to offer expertise and technology that help companies maximize their referral marketing efforts.