Imagine you want to buy a pair of quality jeans but you don't have an idea of where to get one because there are no supermarkets, malls, or boutiques close by and you don’t trust roadside vendors enough to give you quality jeans you’re looking for.
You could mention this to one of your close friends and immediately your friend starts telling you about a small business he knows that sells the best jeans in the area. You might be skeptical and not want to believe him at first, but when he continues pressing on and pushing you to visit the business, you would want to give it a try.
After considering it for a while, you could pay a visit to the business and truly find out that your friend was right all along and the jeans you found there end up having more quality than the jeans you initially wanted to buy. After having this kind of experience, any other time you want to buy jeans again, you would rather visit that business than go to supermarkets or boutiques.
This scenario is a good example of referral marketing.
What is Referral Marketing?
Referral marketing involves the use of referrals to promote your business products and services. A referral describes the act of referring someone to something. A referral also describes a person who was referred to something by someone. In referral marketing, you encourage your customers to refer their network of people to your business.
In our scenario, you became your friend’s referral immediately after you visited the business and ended up purchasing the pair of jeans you were looking for.
Referral marketing is a deliberate attempt of a business to promote its products and services through referrals. It does this by starting up referral campaigns which are carefully designed structures and reward systems you put in place to reward your customers as they refer more and more people to your business.
How Important is Referral Marketing in Increasing Business Sales?
Referral marketing increases your business sales by helping you in the following ways:
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You gain a more precise audience. Your customers will only refer your business to people who they know are in search of your product and will like your product. This will give you an audience that likes your business and like what you are offering.
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The customers you gain through referral marketing tend to be more loyal to your brand and trust you more. Like in our earlier scenario, you would trust the jeans vendor so well and be so loyal to him that you wouldn’t go any other place to buy jeans anymore.
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Referral marketing extends your audience and market reach. Areas that your business couldn’t get to easily will be quickly covered by your customers who are spreading the news about your business.
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Your brand awareness increases. As customers promote your brand, your reputation increases and your brand identity tends to be perceived as honest and authentic.
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Referral marketing rapidly increases your audience and your customer engagement. Your customer retention is also increased. Through your referral campaigns , a lot of customers will quickly key into the opportunity as they see that they will be rewarded for any referral they have.
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RELATED: The Role of SMS Marketing in Increasing Business Sales
Conclusion
Referral marketing can rapidly boost your business sales provided that it was launched on a good referral campaign. These referral campaigns would attract customers who will go out to attract other customers to your business and those customers will also go out too to attract even more customers to your business. This cycle would continue and not stop.
SmartSMSSolutions can help you in these referral campaigns through SMS marketing which will attract even more customers to your business and further increase your business sales. Register with us and let’s get started. You can also call us on 07034243326!