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Referral Marketing Fundamentals
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https://virtualcmo.expert/
All businesses thrive when they have abundant referrals.
But how does one build a marketing process which is proactive in generating more referrals?
Based on surveys, less than 5% of businesses have a referral marketing process in place.
What would happen to your business if your referrals increased by 20%, 30%, or even doubled to 100%?
There are 3 underlying requirements, which then build out to more detailed and complex steps:
1. Deliver quality. In other words, “Be worthy of referring.” If your shit is broken, this is the first fundamental to remedy.
2. Have something built into your brand which is distinctive and memorable. This is often referred to as a “talk trigger.”
This could be how you dress, a secret menu item, a big bag of peanuts with your burger, etc. This is where brilliance can be in your favor.
3. Work to remain at top of mind as the “obvious choice” of your customers and followers.
This requires creative and inspiring content, email, social media, texting, and automation. Moreover, it is consistent and Omnipresent.
What is Referral Marketing?
Referral marketing means spreading the word about a product or service via existing customers.
In other words, you tell an existing customer to share your product or service with their friend or family members. In return, you promise the existing customer a monetary reward or discount on the next purchase.
Referral marketing allows customers to become the voice of the product and promote them. They speak to others on behalf of your company.
Referred Customers are more Valuable.
Customers referred by referrals stay long and are a valuable asset to the company. It is because they already have a favorable opinion about your products or services. These customers have been referred by a peer whom they trust.
Moreover, a seller doesn’t need to spend a fortune to maintain this customer group unless your product or services become sub-standard over time.
Hence, it is true that customers that have been referred by a friend, family member, or colleague hold a lifetime value.
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