How to Use Referral Marketing to Skyrocket Your Sales

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Referral marketing is a way to get more customers by using the networks of a company's current customers to spread the word about the business. At its heart, referral marketing is a way to promote your business with the help of your most loyal customers. In other words, referral marketing is a way to get your current customers to spread the word about your business.

What makes referral programs work?
Before we talk about how to do it, let's talk about why you should make a referral marketing plan. How do recommendations change things? Consider this

A word-of-mouth recommendation leads to at least five times as many sales as a paid recommendation.
Referral customers spend twice as much and bring in twice as many new customers.
Leads that come from recommendations have a 16% higher lifetime value and a 30% higher conversion rate than leads from other sources.
If they could only get information about a purchase from one place, half of Americans would choose word of mouth.
Referral marketing and word-of-mouth advertising work well and don't cost much. When we have a good experience with a company, product, or service, we are happy to tell others about it, and we do so often.

Professor of marketing and author of the best-selling book "Contagious" Jonah Berger laid out six rules for sharing and word-of-mouth:

As social currency, we share things that make us look good.
We talk about whatever is on our minds.
We talk about things that are important to us.
Public: We do what we see people around us doing.
We give things to other people because they can use them.
We talk less about facts and more about stories.
If you hit as many of them as you can, you'll have an idea, product, or announcement that people will want to talk about and share, which will help you stand out from your competitors.
It's easy to see: Referrals and recommendations are not only helpful, but also necessary if you want to stand out from the competition. These might be the main thing that sets one product or brand apart from another, even if they are otherwise similar, since people actively look for them.

The digital revolution has made it easier than ever to start and run a business, but it has also made competition more fierce.

Referrals turn happy customers into strong advocates for your business. They put a lot of money into your product, so if they're happy with it and the return on their investment, that will help you sell it to other people.

You can make a self-sustaining lead machine by using simple, mostly automated software to ask for referrals and give rewards for them. You and your brand stand out in a sea of things that are the same.

Together with Ral Galera of ReferralCandy, I've put together a few examples of how referral marketing can help you stand out from the competition.

First-generation word-of-mouth marketing plan: Girlfriend Collective enters a market that is already full of competitors.
The fashion market is crowded. The fashion industry for women is very busy. You have to make a good first impression if you want to do well.

Girlfriend Collective is an online store that sells athleisure gear. It needs to do something to stand out from the other stores. For the business to be able to compete with well-known brands like Lululemon, Adidas, and Nike, it needed to get going quickly.

The company started by making a great product: all of its leggings and bodysuits are made from recycled plastic bottles using fair-trade labor.

Second, Girlfriend Collective had to get its name out there as much as possible without spending too much money. The company decided not to spend money on traditional marketing like its competitors had. So, as part of their marketing plan, they chose to give away their free $80 leggings.

"It's kind of scary to buy a $100 pair of leggings from a brand you've never heard of," says co-founder Elle Dinh. We wanted people to trust us, and we knew that if we gave them the product, they would. That's how much we believed in what we were doing.
Ellie and Quang Dinh, their co-founder and husband, were sure that anyone who wore their leggings would fall in love with them. And this strategy got rid of the problem of having to pay for an unproven brand at the same price as getting a customer the old-fashioned way.
Girlfriend's pre-launch website told customers about how they use recycled plastic bottles in their leggings and how important fair trade is to them. Customers were told that when they bought the leggings, they would not only get a free pair, but they would also be helping the environment.

#marketing #refferalmarketing #easymarketing


Copywriter: Kamran Tagiyev
Voiceover author: Jeremy G.
Animation author: Asad Asadzadeh
Sound editor: Mahluga Taghiyeva
Project manager: Kamran Tagiyev