11 Benefits of Referral Marketing to Inspire Your Strategy

Well, it’s a lot less expensive pushing marketing efforts towards your existing customer base than it is to market to new customers. Not to mention, a customer’s recommendation of you is much more persuasive than any ad you could pay for. Combining paid, owned, and earned media channels is vital for any marketing strategy. A referral program is one of the few marketing channels that counts as a paid, owned, and earned strategy all on its own.

Referral programs can be less expensive than other recruiting methods

• Referral programs work because people instinctively trust recommendations from someone they know more than mass advertising messages.
• An updated survey from SHRM found that the average cost-per-hire is $4,683, with the average executive cost-per-hire sitting at $28,329.
• Furthermore, they may not have to invest heavily in employer branding and recruitment marketing efforts in order to attract new talent to their companies.
• Whether it’s driving sales, boosting customer lifetime value (CLV), or enhancing brand visibility, setting clear and measurable goals will help shape your program’s design and success metrics.
• Instead of simply asking for referrals, one idea is to ask for “leads” instead.

From cash rewards, discounts, and gift cards to upgrades or loyalty points –the key is to offer referral rewards that will encourage others to refer too. In this blog, we’ll outline why every company should consider implementing a referral program and how it can transform your marketing strategy. Are you enticed by these benefits and ready to start a customer referral program? Learn more about how to start one in our ultimate referral program guide, or check out the advantages of using our own referral program software.

Many modern consumers want to align themselves with brands that have a strong voice and a positive influence. 85% of consumers agree that they prefer a more authentic, honest brand. Allowing your own customers to tell your story makes that story through referrals resonate more strongly. Not even the most loyal customer will send referrals if they’re unsatisfied with your product and service. People won’t risk their own reputation and social currency to promote a questionable brand.

eCommerce Referral Marketing Mistakes to Avoid

Using a referral link, Tesla customers can benefit from “Buyer Benefits” when ordering a product. Once they complete their first purchase, they can collect “Referral Credits” by referring new customers to Tesla. While brands save money implementing and using referral programs, they also see better outcomes across many typical marketing and sales metrics. Those hard numbers are in addition to improvements in trust, enthusiasm, and brand recognition. You may need to test out a few options before you find something that sticks, but that’s okay. If you take the time to pin down the perfect reward, you have the potential to motivate a lot of referrals.

Increased Brand Awareness and Customer Acquisition

Recruiterflow takes care of all of https://officialbet365.com/ this for you so you can relax and run a super engaging referral program. If you are looking for inspiration, here are a few examples of super successful employee referral programs run by the very best organizations. Contact us today to learn more about leveraging employee referrals for success. Employee referral programs are a great recruitment strategy that benefits both the employer and employee. They lead to improved quality of hires, faster hiring process, cost-effective recruitment, and increased employee engagement. Organizations looking to reduce recruitment costs and improve recruitment outcomes should consider implementing an employee referral program to take advantage of its numerous benefits.