While a business may have the best referral marketing program in place, it is vital to also understand how to organize them, respond to them and benefit from them.
While a business may have the best referral marketing program in place, it is vital to also understand how to organize them, respond to them and benefit from them. Learning some of the industry's best practices in referral program management can be incredibly beneficial to your business in the short and long term.
Referral Approaches
In addition to the management and organization of a referral marketing program, it is vital to hone a system of approach for prospective consumers.
Proactive Approach - Proactive approaches include attending networking events, registering for online referral programs, attending seminars and more. The proactive approach can also include how an individual approaches their employees about any referrals they may have in mind.
Residual Approach - A more passive approach to a great referral marketing program is in a rewards scheme. While this may seem an active approach the activity stops once the program is created and implemented, from then on, it is a matter of collection and responses. Using online or offline methods of residual approach are possible and is best determined by a business's geo-location and its possibilities.
The best type of approach is likely a generous mixture of the two. While networking with individuals in a word-of-mouth style is an old school scheme that rarely fails, the rewards program offers also offer a tried-and-true system of customer referrals.
Response Approaches
It is not enough to have a referral marketing program that leads your referrals to nowhere. Collecting referrals does little good for any business and the key to gaining converted customers from referrals is in a business's response time and approach.
Rapid Response - When you receive referrals, respond to them immediately. Whether they will require an email, personal or even letter response matters little. Have a system in place before you begin a referral marketing program on how to respond to each type of referral you will receive and in which manner.
Rewards Response - If you have brought in referrals through a rewards program, make sure that your first response to that referrer is to either supply the reward, or consult with them about it if it allows or requires consumer personalization. Do not approach your new referrals with a sales technique before they have received their promised rewards.
Referral Program Organization
In a digital world options for referral marketing programs organization can be endless. Utilize every method available to your business to ensure top-notch organization and rewards from these valuable referral programs.
Multiple Submission Platforms - Eliminate wasted time and disorganization possibilities by making sure your employees have multiple options for submitting and managing referrals. Email, phone, text and web communications should always be easy to access.
Document Creation, Sharing and Backup - There are many free platforms such as those available through Gmail that allow for and encourage document creation and sharing across the board, or scope of your employee base. If your business is more established, you likely have an existing CMS to manage your resources. Have your referral system integrated in this for quick access as well. Always use a backup system to protect your business's referral base.
What Type of Marketing Referral Program is Best for Your Business
To understand what type of marketing referral program is best for your business, it may be vital to first understand where referrals can come from in the first place.
When Your Referral Rewards Program Goes Wrong
The horror stories are enough to scare any small business owner into inactivity. That one business that was doing great with an excess of capital decided to enact a new referral program and the next news you heard was how they overextended their offer and were swept up and down the creek into bankruptcy. It can and does happen. When your referral rewards program goes wrong there can be a few good reasons why.
4 Tips for Preparing Your Business for Referrals Programs
If you have established your business, set up some marketing efforts and branded your company's name, it may be time to prepare your business for referrals programs.
