Referral marketing is often thrown into lists of great marketing ideas, but have you taken the time to explore how to set up a referral program for your business?
Referrals are one of the best ways to market yourself. Let’s be honest, people trust recommendations from people they know. When you’re trying to get the word out about what you are selling, sharing real recommendations from those who are happy with your product or service can help you build rapport and make sales a little faster or with more consistency.
What Are The Benefits Of Referrals?
Before we dive into some hows, let’s look at the whys behind referrals. Why should you look into gathering and showcasing referrals? Why are they worth your time?
- Referrals Are Powerful
Referrals are about trust. When potential customers hear about you from those they trust, some of that trust rubs off on your brand, so to speak. Referrals carry the weight of the relationship between the one sharing and the one receiving. Because they trust each other’s recommendations, your brand is seen in a more positive or trustworthy light, than it would without that referral.
And that’s why they are so powerful. With a referral, you instantly get a leg up on the competition with that loyalty and authenticity behind it.
- Referrals Are Personal
Here’s the thing about referrals, whether they are for a pizza or pediatrician, they are deeply personal. Often built out of at least some level of relationship, referrals can develop out of a very custom need for your brand. People don’t tell others about brands they don’t think the other will care about. Instead, they tell them about things they know they need or want.
And that recommendation often comes with a why. “I think you’d love this pizza because they overdo it on the cheese.” or “I know you need a pediatrician who understands gluten-free diets and other restrictions. Definitely check out ours.” That personalization is part of what makes them so powerful as we discussed above
- Referrals Are Easy
Let’s skip trying to think of the next great marketing scheme or a compelling new campaign. Referrals are a simple step to build up your reputation and get the word out about what you do, without reaching for a lot of creativity.
Too often when we try to get snazzy, we lose a sense of authenticity and forget the people behind why we do what we do. Referrals keep us grounded and remind us of why our clients come to us in the first place, and even more so, why they stick around.
Who Should You Get Referrals From?
Do I have you convinced that you should start referral marketing? Unsure where to start? You need to know who to ask for referrals. That’s the first step.
- Everyone
This is the most basic answer, but the reality is that the power of referrals is multiplied by the numbers of clients who are willing to share your brand with others who may be interested. Setting up a system to automatically ask or taking the time to personally reach out to all your clients can help you reach those numbers faster.
- Your Most Loyal Clients
With the obvious answer aside, let’s talk about your loyal clients and customers. You know the ones. They always provide raving feedback. They are eager to purchase from you or work with you again. They are the ones to spend your time with. They may be eager to refer your brand already. They are likely to be excited to help you get the word out.
- Your Target Clients
Another angle to consider when narrowing down your referral request list is your target audience. This can probably be informed by your loyal clients and customers, but may be slightly different. Your target clients reflect the demographics that you are trying to reach with your brand. Referrals from this group can be very useful because the way your brand helps them and the way they talk about your brand can be very persuasive to more members of your target audience, helping your brand to reach an audience you are trying to connect with.
- Influencer Endorsements
We don’t need to spend a lot of time with this one, but it’s worth mentioning. It’s often alluring to reach out to influencers or online celebrities who will talk up your brand, but try to remember everything we talked about above. Real effectiveness of referral marketing comes with authenticity and genuine connections.
Helping Referrers Refer
Now that you know who you want to ask for referrals, how do you go about getting those referrals? The key is in helping them make those referrals. Taking the guesswork out and helping them refer you to their family and friends.
How you help your customers or clients depends on your own business. Try to get inside their minds. When are they likely to tell others about your brand? How would they want to do it? Here are a few ideas to get you started.
- Marketing Collateral
Sometimes good old fashioned print marketing can help. Anything from brochures or one-page documents to postcards and stickers can give your loyal followers something to tangibly share with others. This is especially great if you have detailed services you provide or are a visual artist and can show off your skills.
- Shareable Online Content
When you are creating online content, such as educational videos or blogs, make sure they are easily shareable. And create content your target market loves. It gives them something to share with their friends when they refer your brand to others.
- A Referral Program
We’ve all used them. Referral codes from brands we love that give others a little discount, and us too, when they use them. It’s a great way to incentivize people to get the word out, but keep in mind that these kickbacks can sometimes take out a bit of the authenticity.
- Just Asking
Let’s just keep it simple. Sometimes the best way to get a referral is just to ask. Just real conversation. It seems so novel in our overly digitized, constantly automatized world, but a simple ask can be as effective as any gimmick you try to employ. It brings the humanity back to the system.
Just Asking For Referrals
How do you ask? Just ask. Ask your longest or most loyal clients. Ask them upfront “Would you be willing to share my name?”
A great way to start is with a real conversation.
- Ask about them and their family. Be real.
- Ask how you can help them.
- Tell them what you’re looking for, such as a type of customer or industry. Would they be willing to share your name?
People like to help other people they like. You may be surprised with the results.
You can also create automated messages with your invoice or after a sale, asking people to share your name, if they are happy with your work.
Referrals can seem difficult or intimating, but at the end of the day, they are about relationships. The relationships you have with your clients and customers and the relationships they have with others.
And the key to referral marketing is nurturing those relationships. Asking for help in spreading the word and making it easy for your friends to do it. And don’t forget to ask how you can help them too.