Word-of-mouth referrals are a powerful marketing tool. According to Nielsen, 83 percent of those surveyed globally indicated that they put their trust in referrals from friends and family, but sometimes customers need a little incentive to spread the word about your business. Incentivizing your client base through a referral program can help boost customer acquisition and retention, as well as enhance your business’s reputation without significant cost.

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Through a referral program, existing customers bring in qualified leads within your niche market. Use a direct referral marketing option that invites customers to simply tell a friend. You can also use implied referrals to let your target market know that you are doing work for a similar client. Consider partnering with a nonprofit organization to develop a community referral program. Both your company and the organization will benefit from your good will, and you’ll have access to more advertising opportunities.

Reward Size Doesn’t Matter

A small or a large reward does not factor greatly into a customer’s referral decision, but the reward must have perceived value. Whether you offer a discount on a future purchase or a tangible item, customers are more likely to spread the word if their reward for doing so is clear.

Use Social Media for Engagement

Don’t discount the strength of online opinions. The Nielsen report also indicated that 66 percent of those surveyed rely on online customer opinions and reviews. A like or retweet on Facebook or Twitter is an endorsement that can go a long way. Keep your social media accounts up-to-date and engaging. If you produce useful and interesting branded content on your social media platforms, people may share that content based solely on its merit, even if they have not personally used your product or service.

However you encourage your customers to pass on the message about your company, you will be joining a long list of companies that recognize and capitalize on the value of a referral program to promote their businesses. Contact Perxi to learn how its team can help you craft a referral program to meet your business needs.