Are you wondering how to implement Referral Marketing as part of the marketing strategy for your e-commerce business? In this blog post we propose why Referral Marketing leads to increased sales, new customers and a stronger brand!
Segmenting that cannot be bought for money
A personal recommendation is usually much more valuable (studies show 5-100 times more) than purchased media. Therefore, Referral Marketing is an important tool to reach out with your message to potential customers - and to maintain a good relationship with the customer group you already have. It is one of the most effective and cheapest methods to increase sales, keep growth numbers up and create awareness about your brand. With Referral Marketing via Redeal, for example, you can offer your best customers a discount code in exchange for a personal recommendation. This leads to both creating brand awareness, improved customer loyalty and increased sales.
Referral Marketing is a marketing method that delivers very high relevance. Using your existing customers as a way of reaching like-minded people is a cost-effective way to reach other people who may appreciate and benefit from your product or service. Personal recommendations are a type of filtering that cannot be bought for money. The reason is simple, who knows you better than your friends and family? I you send a recommendation to a close friend or relative, you most likely know that it will be relevant to them. For that reason, the results with Referral Marketing are significantly more relevant than if you had used influencer marketing or affiliate marketing, for example.
Increased brand awareness
By letting your existing customers take the role as ambassadors you also raise their loyalty, as it takes some dedication to give a personal recommendation. This often leads to an increase in loyalty to your brand - both with your current customer and with the person who is recommended. A new customer who makes a purchase based on a personal recommendation will usually also buy more! In other words, Referral Marketing can have a positive impact on many KPIs other than sales, as well.
By working with Referral Marketing you will both acquire more new customers, build loyalty with your existing customers, increase the number of recurring purchases and increase brand awareness. You also get the opportunity to reward your best customers for recommending your brand, making them love you even more!
Lower the threshold of making a personal recommendation
For those that want to work with Referral Marketing, there are several different solutions. One important aspect whichever solution you choose is that it should be easy and effortless to give someone a personal recommendation. One thing that may also become an obstacle to the customer sending a recommendation is if a discount code is offered only in exchange if the ambassador's friend(s) actually make a purchase. This can be experienced as unnatural and a bit of a pyramid scheme - which many customers will back away from, giving suboptimal results for your referral strategy. At Redeal, we believe in rewarding the customer "simply for sharing", disregarding whether or not their friends actually become customers.
This also leads to higher customer loyalty and brand awareness, even if the related parties choose not to make a purchase at the time. The goal is not just to increase sales, but also to create a knowledge of your brand and making it top-of-mind. This way, the chance is greater that your brand will end up at top-of-mind the next time the person is looking for a similar product or service!
Redeal develops referral marketing solutions for the future of digital retail
We have developed the digital solution that leverages one of the most important marketing phenomenons of all time - satisfied customers who recommend their favorite stores, products and services to their friends and family.
Jens Schill +46 (0)70-771 69 70, email@example.com, or firstname.lastname@example.org