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3 Reasons to Use a Referral Program On Your Website

November 19, 2013 By Ron Leave a Comment

Word of mouth marketing has carried marketing messages since the beginning of time. Today, thanks to the impact of the Internet, it is one of the best ways to market your products and spread the word about your brand.

Leveraging customer referrals is a marketing strategy that has remained constant throughout the years. It was prevalent during the years when television ads and the Internet became popular. And it remains popular today in a world filled with social networks.

Companies that use referral marketing to complement their other marketing efforts reap the benefit of increased sales. And you might be missing out if you don’t leverage customer referrals. Here are three reasons to implement a referral program right now.

People Trust Recommendations From Their Friends And Family

Word Of Mouth MarketingYour customers trust the recommendations and opinions of the people they know. While many consumers check the Internet for reviews before they purchase a product, they’re more influenced by a recommendation from a close friend than they are by reviews on Urbanspoon or Yelp.

For instance, you might dine at a poorly rated restaurant if your friend recommended it. This is one reason why it’s crucial that you give every customer the best experience when dealing with your company – happy customers tell others about their experience. That word of mouth referral will have a positive effect on your business.

Advertisements Can Get Lost

Consumers today are always in a rush, which makes your advertising hit or miss. People use DVRs to record their favorite shows so they can skip over commercials. They listen to music on their iPods and satellite radio to avoid interruptions. They filter their emails to keep spam and promotional junk from their inbox.

Research even shows that Internet users develop ad blindness to banner ads and other types of advertising when they browse the web. The point is that people are using whatever means necessary to block out advertising. However, they accept and trust recommendations from family and friends. This is why it’s crucial to implement a customer referral program to reach your target audience.

Word Of Mouth Marketing Can Go Viral

Referral marketing is not limited to verbal communications where a customer physically tells someone else about your products. Thanks to social media and other platforms, product recommendations can now go viral. For example, if a customer shares details about a pleasant experience he had with your business, it will place your company at the top of people’s minds. Others may be inspired to pipe in and share their own experiences, which could help boost your company’s success.

An effective customer referral program can level the playing field between large corporations and small entrepreneurs. Create relevant, targeted, and memorable content to motivate site visitors to spread the word about your brand. The best part is that you don’t need a massive marketing budget. Your visitors will do most of the heavy lifting – enthusiastically and willingly.

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