When you think of receiving leads, the first thing that comes to most people’s minds is paid ads, social media, emails, and SMS. This holds true as they are great tools for generating leads. However, there is an untapped tool that remains the best in lead generation. Referral or word of mouth marketing is a tool that gives you high-quality leads that will increase your sales and revenue in the long term.
Heinz Marketing conducted a study that showed companies that had formal referral programs reported 40% of referral leads. On the other hand, companies that did not have a formal referral program reported that only 22% of their leads came from referrals and they had to rely on other strategies to generate leads such as cold calling.
Consider this, how many times have tried out a new product or service after a friend recommended it? Probably a few times. Did you recommend it to others after your experience? If you found the user experience great after a recommendation it’s more than likely that you will also recommend the brand to others. That is what makes referrals one of the best marketing strategies that you can utilize for your business?
Why use referrals as a way of receiving leads?
The trust factor
People pay attention to recommendations from people they trust. If someone they trust says that a brand is great after they try it then you know it’s generally so. The person also knows you and what you like, so if they recommend the product to you, they know that you will like it.
Customers typically recommend a brand to someone they know will like the product or service. They refer a brand to the right audience because they know them well. Social media recommendations work the same way. Readers are searching for that content specifically and want to read reviews from people who tried your brand.
High audience reach
Family and friend are not the only people who can give referrals. Recommendations and positive reviews on social media, blogs and news articles are also referrals. They can be in the form of testimonials, influencer opinions, and news articles.
Using digital streams can accelerate your reach as thousands of people can read reviews and recommendations in just a day. It can be expensive when using industry influencers, but the authority they have with the audience helps you expose your brand to a wider audience.
If you use the typical referral system, you will not have to spend a single cent to get referrals. All you need to do is ensure that your customers are happy and satisfied with the product. However, it is important to let your customers know that you appreciate them telling others if they like your product.
If you have not set up a formal referral program, you might want to consider it. A referral program will help you capitalize on an untapped marketing strategy. A good referral program usually has rewards for customers who refer others to the brand. It’s up to you to choose what the reward would be. It can be an account upgrade, a free ebook or discounted products among others. A good referral program will enhance your brand reach and exposure, increase trust in your brand and reduce your marketing costs.
Receiving leads has never been this easy!