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5 Referral Marketing Strategies to Win More Sales

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5 Referral Marketing Strategies to Win More Sales


Winning more sales ultimately comes down to trust.

The prospective customer has to trust that your product or service is valuable and that you’re honorable enough to not sell them something they don’t need.

The way to win trust only comes in three forms:

  1. You’ve built trust by getting to know who you’re selling to and showing them that you’re invested in their success.
  2. Your brand has enough reputation in the market to warrant widespread trust.
  3. You get an extension of trust by getting your product or service recommended by someone they trust.

In this article, we’ll talk about the third option and show you five ways to deploy referral marketing strategies and ultimately close more deals:

What Is a Referral Marketing Strategy?

A referral marketing strategy is a marketing tactic that enhances your company’s ability to spread word of mouth about your products and services and receive more recommendations. It’s a competitive advantage that extends the reach of your marketing efforts beyond your own efforts.

Referrals are a great way to get the word out about your product or service, whether you’re a SaaS company or an e-commerce site. People tend to share what’s useful and makes them look good. They want to be seen as someone who has good taste, cares about their peers, and provides practical value. Referring to great products and services is one way to do that.

The hard part about marketing is getting people’s attention. It’s a noisy world full of too many great Netflix shows and products and services. We can’t buy everything and can’t watch all those shows. We have to find ways to filter out the noise. Getting recommendations is one way to do that, which is why referrals can be an integral part of your marketing strategy.

5 Referral Marketing Strategies That’ll Help You Win More Sales

There are a lot of referral marketing strategies out there that can extend your reach and ensure that you’re giving your company the best competitive advantage. Here are a few that’ll help you win more deals:

1. Host a Free Event for Customers

Doing something exciting for customers will always improve your retention rate. But how does it improve your referral rate?

When you provide that free perk, make it a “plus one” affair. That way, they’re encouraged to bring someone who isn’t a customer but could potentially be one. You get a chance to have a captive audience full of like-minded people ,and hopefully an opportunity to convert them to paying customers.

Digital events work just as well. You can host a seminar that’s paid but offer free invitations for current customers to give to friends, colleagues, or family.

2. Automate Your Ask

If you rely on your marketing or sales team to do it, you’ll see some decent results, but finding ways to automate asking for referrals is the secret sauce. It starts with doing a little research to figure out the prime time to ask for referrals.

From there, it’s as simple as sending out an automated email to each new customer asking them to forward this email to someone who might be interested.

The easier you make it for people to refer to you, the more likely it is that they’ll do it. Creating a simple referral link that they can copy and paste works wonders. Or take it another step further with a button that has a pre-written message typed up outlining the benefits of your service. Then they literally just have to decide who to send it to.

3. Maximize Your Incentives

Sometimes it’s enough to ask people for referrals, but why not boost your chances by offering an incentive? That could mean something as small as giving them a credit on their account for each referral that signs up.

It could also mean that they get a cut of the first deal or monthly subscription cost if you’re offering a service. As Content Mart rightfully stated,

The better your incentive, the more likely it is that customers will go out of their way to tell their friends, family, and colleagues about you.

4. Harness the Power of Reciprocity

The “law” of reciprocity essentially says that when you do something nice for someone, they’re more likely to develop an urge to return the favor and do something nice for you.

With referral marketing, you could evoke this urge by giving your customers or prospective customers a gift. It could be tickets to a concert or a sporting event. Perhaps something simple like a branded coffee mug or coupons to their favorite shopping store.

You close the deal, offer up a gift or kind gesture, and ask for a referral. If you find something that works well, then make it part of your sales plan and automate it. Build it right into the sales process and go even bigger for those that actually send a referral your way.

5. Take a Leap of Faith

Of the many popular sales closing techniques, none stands the test of time better than simply asking for the sale. That’s right. Sometimes the best strategy is asking your prospect if they’d like to make a purchase today. Or sometimes assuming the sale by asking, “how do you want to make your first payment?”

Turns out, that’s equally true for asking for referrals. Sometimes just asking is all it takes to get one. And if you do it consistently enough, the odds will stack in your favor. It could be an automated email like above, but sometimes a personal touch like a phone call or an in-person meeting works better.

What works especially well is being specific with your request. Swap “would you consider sending me a referral?” for “who else do you know that would benefit from our product?”

The strategies you can deploy to maximize your chances of getting a referral are endless. The best advice we have to offer is to pick one and stick with it for a while. Testing your efforts will help you truly understand what works, what doesn’t, and will ultimately help direct your investment the best.

3 Real Life Examples of Successful Referral Marketing Campaigns

1. Lyft

Lyft

Lyft’s referral marketing strategy is a perfect example of what it takes to spread word of mouth from current customers. Lyft incentivizes current customers to refer their friends and family members by offering up free ride credits.

The company also markets itself through features such as the ability to share riders’ ETA with other non-customers, as well as locating lost or left-behind items. Lyft further incentivizes newly referred customers by offering up free rides when they sign up, regardless of whether or not they use a friend’s referral code.

2. Dropbox

Dropbox

Dropbox puts their referral marketing strategy into the hands of its customers by offering up plenty of incentives in the way of additional cloud storage space. Dropbox Basic accounts are awarded 500 MB per referral and can earn up to 16 GB of additional storage, while Dropbox Plus and Professional accounts can receive 1 GB per referral and can earn up to 32 GB of free storage.

Customers can even track the status of their own referrals that they’ve sent, which allows them to have the ability to follow up with anyone that they’ve sent an invitation to without Dropbox ever being directly involved.

3. Tesla

Tesla

Tesla’s overarching goal is to “build the best clean energy products”, and its referral program goes hand-in-hand with that objective. Current customers can share their referral link via the Tesla app, which – like Dropbox – allows them to track the status of their sent invitations as their Loot Box rewards.

Rewards include 1,000 miles of free Supercharging with the purchase of a new Tesla car for both the referrer and the new customer, a $100 reward for the activation of a new solar energy system or Solar Roof, as well as a $400 award for each solar referral. A Powerwall can be earned for the referral of 10 solar customers, which is more than a lucrative enough incentive to keep current customers referring potential new customers.

4 Tools Companies Can Use for Referral Marketing

Getting starting with a referral marketing program can seem like a daunting task – but it doesn’t have to be. There are plenty of available tools that allow you to hit the ground running with your referral marketing strategy, all of which allow you to customize and configure your program as much or as little as you want. Here are a few solutions to check out:

Referral Factory

  • Website: https://referral-factory.com/
  • Price: 15-day free trial, then from $95/month

Designed for small to medium-sized businesses, Referral Factory makes it “easy for any business to build their own referral program.” You’re able to choose from 1000+ referral program templates, or create your own with your company’s branded colors and logo. Just set up your rewards, and you’ll be set to track your referral campaigns in real-time. This is a great tool to start your own affiliate marketing program.

Friendbuy

  • Website: https://www.friendbuy.com/
  • Price: 30-day free trial, then from $249/month

Friendbuy believes that “referrals are your best channel for dynamic business growth”, and puts its money where its mouth is with its refer-a-friend program. Automated rewards fulfillment and A/B testing are just some of the features that Friendbuy provides, with the ultimate goal being marketing your company through customer engagement and word of mouth.

Ambassador

  • Website: https://www.getambassador.com/
  • Price: Unavailable

Ambassador allows you to turn your best customers into brand ambassadors by segmenting them into categories such as “customers, affiliates, influencers, partners, employees, and other advocates.” These roles are incentivized and tracked in real-time, allowing you to make the most of your referral program while further understanding who your customers are and creating more opportunities for engagement.

Mention Me

  • Website: https://www.mention-me.com/
  • Price: Unavailable

Mention Me aims to drive referrals throughout the entire customer journey, incentivizing current customer referrals whether they are new happy customers, or long-time, repeat customers. With reporting and analytics tracking your customers’ purchasing behavior, you’ll have plenty of actionable insights to pull from.

Think back to the last time you referred someone to a product or service. What was it? How did you tell them? Share your findings in the comments below:

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Sujan Patel

Sujan Patel is a partner at Ramp Ventures & co-founder of Mailshake. He has over 15 years of marketing experience and has led the digital marketing strategy for companies like Salesforce, Mint, Intuit and many other Fortune 500 caliber companies.

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Google Maps Testing New Local Panel With Images & Tabs

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Google Maps Testing New Local Panel With Images & Tabs


Google Maps is testing a new local listing interface where it shows more images in the top portion of the local listing and there are tabs to show the business overview on the left and the reviews on the right.

Here is a screenshot I took from the video recorded by Punit on Twitter:

click for full size

Here is his video so you can see it in action:

In 2017, Google rolled out the tab interface like this for local panels in Google Search but I don’t think it launched in Google Maps.

I think I like the tabbed approach, since reviews for many local listings are super important.

Forum discussion at Twitter.





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Small Business Search Trends On The Rise In 2022

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Small Business Search Trends On The Rise In 2022


A new report from Semrush reveals searches related to small businesses, particularly ‘opening’ a small business, are on the rise.

The report details the business categories and specific search queries gaining traction and offers insight into what areas of marketing businesses are investing in.

Data in the report is based on the keyword and search volume intel collected by Semrush.

After analyzing the traffic growth trends to organic search performance over time, Semrush shares which small business categories manage to do better online.

Here are some key highlights from the report.

Search Trends Around Opening A Business

Looking at search volume for various searches that indicate an intent to open a business, the report finds:

  • Over the past four years, the number of “open business” searches has grown by 21%.
  • The majority of “open business” searches occur in January and March.
  • From 2018 to 2022, searches for all things related to starting a small business spiked by 76%.

Most Popular Small Business Categories

While general interest in starting a small business is spiking, search volume indicates aspiring business owners are looking to open boutiques:

  • Almost one-fifth of all entrepreneurs-to-be want to open a boutique.
  • starting an Etsy business looks attractive to almost one-fifth of all the searchers.
  • Vending machines appear to be gaining the most significant traction, as the category broke into the second spot of most-searched small businesses.

Analyzing search trends across regions, the report finds:

  • The “Etsy, cleaning, boutique” triad is present—fully or partially—across each state’s top 3.
  • In exactly half the states, coffee shops also make it into the top 3 most searched small business categories.
  • Montana and Vermont searchers also consider delivery services as a potential undertaking.

Most Frequent ‘Small Business’ Related Searches

Half of all the top small business-related searches are related to financing.

Here are the top queries, ordered by average monthly searches:

  1. Small business loans
  2. Small business grants
  3. Small business administration
  4. Small business ideas
  5. How to start a small business

Small Business Searches Related To Marketing

Keyword stats indicate small business owners try to embrace all the up-and-coming trends:

  • Searches for digital marketing services surged by 1,500% (especially fast during the pandemic).
  • Interest in creating short videos for small businesses grew by 420%.
  • 600% more people were looking up free text message marketing in 2022 than in 2018.

Small Business Site Categories With the Highest Traffic Growth

The report finds the average traffic growth for small businesses across the board was 2900%.

Semrush states:

“This means that over the past 4 years, most of the websites within our client list managed to expand their visitor base.”

Top 10 Small Business Site Categories By Share of High-Ranking Organic Keywords

The report explores which small business site categories have the largest share of high-ranking organic keywords.

Here are the categories listed in order, followed by the median number of organic keywords where the domain ranks in the top 10

  1. Publishing: 45,581
  2. Online Media: 10,116
  3. Veterinary: 9,379
  4. Entertainment: 6,627
  5. Consumer Services: 3,518
  6. Consumer Goods: 3,339
  7. Building Materials: 2,957
  8. Music: 2,593
  9. Human Resources: 2,145
  10. Food & Beverages: 1,839

What’s interesting to note here is how the top 10 categories by high-ranking keywords don’t line up with the fastest-growing site categories by traffic. Semrush suggests this could mean ranking for a high number of keywords might not directly lead to traffic growth.


Featured Image: Monkey Business Images/Shutterstock





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Google Top Stories Topics Sections On Desktop

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Google Top Stories Topics Sections On Desktop


Google Search is now grouping some of its Top Stories sections for some queries by topics. This was working on mobile for a while but is now reportedly working for the desktop Top Stories Google Search results.

Here is a screenshot for a query on [biden] where Google Search on desktop is showing a topic section for abortion articles and a topic section for the US military in Europe. You can click on the image to enlarge or check it out yourself for that query.

click for full size

Yes, the layout is now new, it is from December 2021 but the topics on desktop search is new according to Shalom Goodman, who is a news SEO and would know this.

He shared more screenshots on Twitter:

It makes sense to group some queries by topics for the Top Stories section.

Also, I wasn’t sure if this was new, but the “Topics In News” section on the right is supposedly new:

Forum discussion at Twitter.





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