Why Referral Programs Are Important for Small Businesses

Lydia Adams March 15, 2018
customer loyalty program

Word of mouth is the best kind of advertising, and a strong referral program is a tried and true way to help you grow your business, no matter how big or small. Here are a few reasons you should consider implementing a referral program for your small business.

Let Your Customers Do the Work for You

Running a small business can be an onerous task that takes up much of your time and money. Marketing is a large part of a successful business, but a smaller business may not have the resources available to devote enough attention to this aspect. A referral program gives your customers incentive to do some of the legwork for you.

Build Customer Loyalty and Retention

Referral programs provide your customers with an incentive to return to your company, while they are also encouraging others to try out your products or services. It creates brand loyalty, and research shows that customers who are brought in through referrals tend to have greater retention value.

Viral Marketing

Social media has its drawbacks, but when it comes to referrals, it’s an easy and lucrative way to get the word out about your business. A referral program that encourages your customers to promote your business by sharing their positive experiences online has the potential to increase your company’s social media presence with just a few clicks.

Marketing That Keeps on Giving

A good referral marketing program is self-perpetuating. One quality customer might tell two more, who in turn could tell two more, thereby expanding your customer base exponentially.

A referral is one of the best compliments your business can receive. Encouraging your valued customers to spread the word through a referral program is beneficial to you, your customer, and your potential new customers. Contact the Perxi team to learn how our resources can help you craft a referral program that’s tailored to meet your small business goals.

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