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Top 10 Successful Referral Marketing Ideas for Small Businesses

Anthony Taylor July 15, 2020

The COVID-19 outbreak has created challenges for small businesses worldwide. With mandatory closures, followed by phased re-openings means for most small business owners, business is down, though striving to continue successfully. There is no better time than now to utilize referral marketing and let your loyal customers help your business. In all likelihood, many customers have remained faithful, loyally supporting your business as best they could during the pandemic, including word-of-mouth recommendations for your business. Referral marketing is firmly grounded in word-of-mouth advertising and these top 10 successful referral marketing ideas for small business can help you continue to serve your customers, overcome the obstacles left in the wake of the coronavirus pandemic, and gain new customers at the same time. 

Tried and tested, these referral marketing techniques are reliable and cost-effect ways to market your small business successfully and grow your customer base. There are lots of unique ways to offer a referral marketing program to your target audience, including gift cards, discounts, giveaways, and deals. Keep in mind that whatever option you choose needs to represent your brand and resonate with your customers. Referral marketing can work for every business, online or brick and mortar or both, in any industry. Let’s get started!

  1. A Referral Contest – While this is a common referral marketing technique, it is always as unique as your business. Nearly everyone is familiar with the concept, and probably have even been a part of a few, making it an easy sell for your loyal customers. The easiest way is to create a widget (free apps are available) which reward your customers (contestants) when they completely refer others to your business. The referrals could take many forms but often include “liking and sharing” on social media platforms. The more times they make a “referral,” the greater their chances of winning.  
  2. Use Social Gifting – Social gifting does not reward your current customer but rather the one he or she referred. Subscription services use this method successfully, allowing their customers to gift a free subscription box to a friend. Customers are happy to gift a friend, friends are happy to receive a gift, and you get to turn them into a new loyal customer. 
  3. An Upgraded Product/Service – Here you give your existing customers an upgrade for something they recently purchased, like the premium tier of your service or extras for their product.
  4. A Mystery Gift – Similar to the upgraded product/service, the mystery gift is given to your customers for referring friends to your brand. The best part of the mystery is you can give away a product or service from your store or a special gift you purchased for the promotion.
  5. A Donation to Charity – Depending on your business and your customers, a donation to their favorite charity or cause on their behalf may resonate with your customers as a great reward for referring their friends to your business. Make sure the charity or cause aligns with your brand and values, as well as your customers. 
  6. A Store Credit – Another commonly used idea, store credit is an incentive appreciated by your customers. Your customer is saving money and it only costs you the wholesale value of what they redeem the credit for, plus offering credit for referrals encourages repeat purchasing!
  7. Make the Referral Process Simple – The referral process to get the reward should be easy, or your customer may ignore it. The process should be short, simple, and easy to track.
  8. Make the Referral Program Visible – Choose a catchy memorable headline that showcases the value of the referral program for your customers and their friends or family. Keep it focused on the benefit/value you are providing in return for referrals. 
  9. Make Your Referral Program a Selling Point – If someone is looking at your product or service and comparing it with your competitor, your referral program could be the leverage you use to help them choose you. Potential customers should be able to access the information about your program with ease! 
  10. Retarget Those Who Visit Your Website – This simply means tracking those who visit your site and promoting your products, services, and referral program to them on another medium like Facebook. Give them every opportunity to refer their friends. 

Launch Your Successful Referral Marketing Program Today!

Yes, you can launch your successful referral marketing program today, all you have to keep in mind is creating a program your customers will be excited to share. If you need ideas, Perxi can help! Reach out today and let’s get moving!

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