What is Referral Marketing?
Referral marketing is a growth marketing tactic that seeks to recommend a brand/service to their friends, family and acquaintances. It might seem familiar to the word of mouth marketing. However, the only difference is the organisation/business would pay you commission for the referral. Referrals might sometimes reward you with the most valuable leads.
Example: Most of us use the Gpay app for money transactions. During the launch of the app, you would see a message “Refer your friends and earn Rs.100”. So, the referral person would earn a commission.
In word of mouth marketing, the commission technique is not available. Most of the applications and games use referral marketing for promoting their products.
What are the different types of referrals?
• Direct Referrals
• Email Referrals
• Incentive-based Referrals
• Review Referrals
• Social Media Referrals
• Client Referral
These are the different types of referrals.
6 referral Marketing best practices:
1. Know when and how to ask for referrals.
2. Exceed customer expectations because referral marketing relies on happy customers.
3. Offer some sort of incentive.
4. Use your email contacts effectively.
5. Give a referral and you will receive money.
6. Make it clear about the product/service and it would be easy for people to refer.
The businesses that employ referral marketing include:
• Retail stores
• Travel Agencies
• Gyms and Health clubs
• Doctors and health professionals
How much percentage of referral marketing are you planning to use for your business?