Referral Program: 5 reasons you need one at your small business
As a small business, there’s nothing more powerful than word-of-mouth to gain new customers and build trust and loyalty. And one great way to encourage word of mouth is by starting a referral program, where you offer customers some kind of reward for referring their friends. Any type of business can enjoy the benefits of a referral program, from local shops to startups. Here are five reasons to implement one today.
1. A referral program drastically expands your popularity.
Everyone loves getting a reward, so it makes your customers that much more likely to actively recommend you to others. Sure, they might have done it on their own anyway if they had a good experience, but most people won’t go out of their way to drive business to you without an incentive.
2. Encourages loyalty.
When people have recommended you, they’re more likely to remember why they liked their experience at your business, and hence more likely to return. Plus, when you reward them for it (especially if it’s a reward like 50% off their next purchase) they’ll naturally want to come back and use it. And referred customers will also be more likely to stick around, since the trust of their friend/family member is transferred to you.
3. Referral programs are shareable.
In an age of social media, a creative referral program can make you go viral. Try also offering sweepstakes entries for sharing information about your business on Facebook, Instagram, or Twitter.
4. It improves customer relationships.
Referral programs create goodwill on both sides. In your case, you’re assured that the customer likes your business enough to share it with people they know. In their case, they’re happy that they got a good business experience and a reward for sharing.
5. They are one of the cheapest forms of advertising.
You don’t have to pay advertising experts, run Google ads, or design complicated campaigns. All you have to do is tell your customers, set up an affiliate tracking program if you have an online-based business, and let your customers do the rest.
Contact Smart Capital Lending Group at 407-202-8494 to discuss other questions and financial considerations you have for your business.