Here’s How A Referral Program Helps Achieve Success

 | Business

No matter whether you are running a startup or small shop, a referral program can always bring in a lot of success to your small business – after all, nothing is better than gaining new customers.

A lot of people will admit that they have heard of at least one business that is running a referral program right now!
Well, here, we are not talking about those businesses that provide punch or loyalty cards to their customer, but about an honest referral program. The one where you refer your friend and get cool goodies in exchange and not the whole buy four burgers and get the fifth one for free.

We are looking at changing a potential customer into a regular customer, as in widening your existing customer base.
So, if you want to know more about how a referral program can help your business become more successful, read along the pointers given below.

  1. Spreads like wildfire
    Social media makes a great contribution towards the referral program. When you implement a referral program and it is shareable just with a click or tap, you can imagine how fast the word of mouth spreads. People will talk about your business, but if the information of your firm is easily shareable, it can reach a lot of people in a faster way.
    Here, let’s have a quick breakdown – If one of your customers shares your referral program on their social media account, then everyone who follows that person is likely to have a look at it. Let’s just say that at least two people click that link and actually become your new customers.
    Now, these two customers share your referral program and help you gain more customers. Do you see the point here? A referral program can go on and on, adding new customers to your business.
    So, come up with great ideas for a referral program and keep growing your customer base!
  2. Makes loyal customers
    With a referral program, a customer is provided with the benefits of incentives that keeps making them come back to you to do business. Few businesses often see a customer coming back to them every month, on a weekly basis or even 3 to 4 times a week depending on the nature of the business.
    So, if a customer is bringing business to you by recommending your product, service or brand, make that customer your brand advocate. Well, a brand advocate is none other than your own personal cheerleader who roots for you and your business.
  3. A different form of advertisement
    By now you must have understood that a referral program basically acts as an advertisement – we’ve covered this in the first point itself. When customers share your referral program on the Internet, it acts as an advertisement for your business, wherein you can showcase your logo and share what business you do.
    A lot of companies use referral programs to their advantage and explain what kind of products and services they provide. So, every customer who shares your “advertisement” adds their own words and encourages their friends and followers to check out your referral program, putting your business in front of several new eyes.
    For a small business, this solution works out great. It helps them spread their name without working hard and at a fewer cost as compared to the actual cost of an advertisement. For example, if you run a small company that sells heavy duty plastic boxes, give points based on the purchases made by every referred customer and offer them a discount for the same.
  4. Builds better relationships
    Referral programs help build better relationships. People engage with your business on a different level and it leads to customer loyalty. Many of your customers will even go out of their way to contribute to your business.
    Of course, there are incentives that’ve made them your customers in the first place, but it was their choice to do something for you.
    Besides, with a referral program, a customer is more likely to consider themselves as a part of your business’s success. These people feel like they are the ones who are making things happen by contributing towards your business. And, this is the only thing needed to make a business successful and build an even stronger customer relationship.

We hope that the pointers mentioned above help you come up with a good referral program and you achieve the success you desire!