Referral loyalty programs have proven themselves to be a successful long-term marketing strategy and it is here to stay. All types of business can enjoy the benefits of a referral loyalty program. The power of word-of-mouth allows businesses to incentivize happy customers for promoting a product or service, which in turn increases both customer retention and acquisition. The customer generated through a referral loyalty program is more loyal and valuable than an average customer.
Referral loyalty programs are one of the most prolific and powerful programs any business can run for their customers. They encourage customers to advocate for a brand or service by referring their friends, family and social network. This turns out to be a more targeted marketing initiative because those who are referring know their audience very well which in turns allows a brand message to spread more effectively. It is a strategic way to keep the flow of new customers returning in.
Some interesting referral statistics:
- 65% of new business comes from referrals
- 77% of consumers are more likely to buy a new product when learning about it from friends or family
- Word-of-mouth has shown to improve marketing effectiveness by up to 54%.
The statistics clearly makes sense for any business to rely on a referral loyalty program for increased sales and revenue.
Importance of Referral Loyalty Program in Businesses
Referral loyalty programs are being employed by a wide variety of businesses. It is most effective when managed efficiently and optimized to attract the right customers. They are proven to generate more new business with lower customer acquisition rates. Furthermore, when customers are referred to a product or service, they are more likely to purchase than those customers who are acquired through different marketing channels. These strategies can be effective for corporations ranging from small single-owner and entrepreneur companies, to massive firms in nearly any industry.
- REAL ESTATE
Real estate business is all about sales and people. To produce qualified customers for the future and optimize the sales cycle of your real estate business, a referral loyalty program can be the solution to increased ROI. Implementing a referral loyalty program is the best way to grow a real estate business. This will help you build a network of satisfied customers who will essentially do the major share of your marketing. To foster profitable and long-term customer relationship, incentivize your existing customers every time they make a referral to friends or family.
- AUTOMOBILE INDUSTRY
In the recent days of struggling sales and turmoil in the industry, the automobile dealers are focusing in areas with bottom-line impact on sales and revenue. Word of mouth is a very powerful purchasing influencer is the automobile industry . The primary key to continued success in referrals is to repeatedly call your current customers and brand advocates for your company. To create an edge over the competition and to gain new and trusted sales pipeline, implementing a referral loyalty program at your automobile dealership will be the best option.
Like any other business, the education industry is also implementing referral loyalty programs for rewarding students or alumni for referring friends, family or colleagues to their institutions. In an educational organization, students are the brand ambassadors. The key to a successful referral program is responsiveness. Offering them with an incentive for referring your course/program to their friends will motivate them to generate highly influential referrals for future.
- HEALTHCARE INDUSTRY
The business of healthcare is going through a complete transformation. To have a profitable medical practice, effective and targeted marketing strategies are required. Referrals are a critical, high-quality and high-value demand generation channel in the hospitals and healthcare industry.
A referral loyalty program is the best way to improve patient loyalty and patient referrals. Though, the referral loyalty program for your medical practice must include offers that are ethical, realistic and easy-to-participate in. Rewarding patients for introducing referrals is encouraging and also helps in driving more positive outcomes in the future.
Referrals play a huge part in the sustainability and growth of an E-commerce business. An integrated, customizable and automated referral loyalty program helps businesses to turn ideal customers into willing brand advocates. A good reputation and good reviews from customers is very important in building referrals, more website traffic, and more sales. Reward your customers with attractive offers for helping you spread your business and connect with more potential customers. Rewarding customers for referrals have continually been used to not only entice customers but to re-market to them in a way that strengthens their inclination to the brand.
A referral loyalty program gives you the chance to adopt a program that is completely different from traditional loyalty programs that no longer stand out to customers and the business owners. Referral loyalty programs are effective and lead to better acquisition rates.
The beauty of a referral loyalty program is that it creates value for everyone involved in the referral process including the company and the customers. Word-of-mouth creates a win-win scenario for customers and helps brands to deliver tons of happiness to customers. They have the potential to act as the most effective marketing tool for businesses when implemented effectively. Referral loyalty programs are going to lead the way and become the future of loyalty!
Would you like to implement a referral loyalty program for your business? Get in touch with us at email@example.com for a demo.