Sales Strategy

Steps To Create an Effective Referral Marketing Strategy January 04, 2023 (0 comments)

New York, NY--Referral marketing is a great way to attract new customers — to have people come to your brand or store if you are just starting.

[Photo by Andrea Piacquadio]

One of the reasons this method is so effective is that irrespective of how much people spend on promotions, they tend to believe the word of someone they trust — referral marketing helps establish that trust.

So how do retailers and brands find the best referral strategy that works for them? This article discusses five steps to help beginners flesh out a potent strategy.

As mentioned in the article, the first step is deciding on customer referral incentives. One way to go about it is by deciding on the customer acquisition budget and distributing the incentives accordingly. Incentives can be on both ends, but if you are on a tight budget, you could offer incentives to customers referring the product. It's even better if the incentive drives them back to the business.

The second step is using software to track referrals and issue rewards. The third and fourth points discuss issuing an excellent product experience and communicating brand values. 

The fifth point mentions promoting the referral program, which the article says can be done via sending targeted emails, using referral links, leveraging social media, encouraging user-generated content, and promoting the referral program on the website.

Read the entire article to learn more.