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5 Referral Marketing Strategies to Win More Sales

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5 Referral Marketing Strategies to Win More Sales


Winning more sales ultimately comes down to trust.

The prospective customer has to trust that your product or service is valuable and that you’re honorable enough to not sell them something they don’t need.

The way to win trust only comes in three forms:

  1. You’ve built trust by getting to know who you’re selling to and showing them that you’re invested in their success.
  2. Your brand has enough reputation in the market to warrant widespread trust.
  3. You get an extension of trust by getting your product or service recommended by someone they trust.

In this article, we’ll talk about the third option and show you five ways to deploy referral marketing strategies and ultimately close more deals:

What Is a Referral Marketing Strategy?

A referral marketing strategy is a marketing tactic that enhances your company’s ability to spread word of mouth about your products and services and receive more recommendations. It’s a competitive advantage that extends the reach of your marketing efforts beyond your own efforts.

Referrals are a great way to get the word out about your product or service, whether you’re a SaaS company or an e-commerce site. People tend to share what’s useful and makes them look good. They want to be seen as someone who has good taste, cares about their peers, and provides practical value. Referring to great products and services is one way to do that.

The hard part about marketing is getting people’s attention. It’s a noisy world full of too many great Netflix shows and products and services. We can’t buy everything and can’t watch all those shows. We have to find ways to filter out the noise. Getting recommendations is one way to do that, which is why referrals can be an integral part of your marketing strategy.

5 Referral Marketing Strategies That’ll Help You Win More Sales

There are a lot of referral marketing strategies out there that can extend your reach and ensure that you’re giving your company the best competitive advantage. Here are a few that’ll help you win more deals:

1. Host a Free Event for Customers

Doing something exciting for customers will always improve your retention rate. But how does it improve your referral rate?

When you provide that free perk, make it a “plus one” affair. That way, they’re encouraged to bring someone who isn’t a customer but could potentially be one. You get a chance to have a captive audience full of like-minded people ,and hopefully an opportunity to convert them to paying customers.

Digital events work just as well. You can host a seminar that’s paid but offer free invitations for current customers to give to friends, colleagues, or family.

2. Automate Your Ask

If you rely on your marketing or sales team to do it, you’ll see some decent results, but finding ways to automate asking for referrals is the secret sauce. It starts with doing a little research to figure out the prime time to ask for referrals.

From there, it’s as simple as sending out an automated email to each new customer asking them to forward this email to someone who might be interested.

The easier you make it for people to refer to you, the more likely it is that they’ll do it. Creating a simple referral link that they can copy and paste works wonders. Or take it another step further with a button that has a pre-written message typed up outlining the benefits of your service. Then they literally just have to decide who to send it to.

3. Maximize Your Incentives

Sometimes it’s enough to ask people for referrals, but why not boost your chances by offering an incentive? That could mean something as small as giving them a credit on their account for each referral that signs up.

It could also mean that they get a cut of the first deal or monthly subscription cost if you’re offering a service. As Content Mart rightfully stated,

The better your incentive, the more likely it is that customers will go out of their way to tell their friends, family, and colleagues about you.

4. Harness the Power of Reciprocity

The “law” of reciprocity essentially says that when you do something nice for someone, they’re more likely to develop an urge to return the favor and do something nice for you.

With referral marketing, you could evoke this urge by giving your customers or prospective customers a gift. It could be tickets to a concert or a sporting event. Perhaps something simple like a branded coffee mug or coupons to their favorite shopping store.

You close the deal, offer up a gift or kind gesture, and ask for a referral. If you find something that works well, then make it part of your sales plan and automate it. Build it right into the sales process and go even bigger for those that actually send a referral your way.

5. Take a Leap of Faith

Of the many popular sales closing techniques, none stands the test of time better than simply asking for the sale. That’s right. Sometimes the best strategy is asking your prospect if they’d like to make a purchase today. Or sometimes assuming the sale by asking, “how do you want to make your first payment?”

Turns out, that’s equally true for asking for referrals. Sometimes just asking is all it takes to get one. And if you do it consistently enough, the odds will stack in your favor. It could be an automated email like above, but sometimes a personal touch like a phone call or an in-person meeting works better.

What works especially well is being specific with your request. Swap “would you consider sending me a referral?” for “who else do you know that would benefit from our product?”

The strategies you can deploy to maximize your chances of getting a referral are endless. The best advice we have to offer is to pick one and stick with it for a while. Testing your efforts will help you truly understand what works, what doesn’t, and will ultimately help direct your investment the best.

3 Real Life Examples of Successful Referral Marketing Campaigns

1. Lyft

Lyft

Lyft’s referral marketing strategy is a perfect example of what it takes to spread word of mouth from current customers. Lyft incentivizes current customers to refer their friends and family members by offering up free ride credits.

The company also markets itself through features such as the ability to share riders’ ETA with other non-customers, as well as locating lost or left-behind items. Lyft further incentivizes newly referred customers by offering up free rides when they sign up, regardless of whether or not they use a friend’s referral code.

2. Dropbox

Dropbox

Dropbox puts their referral marketing strategy into the hands of its customers by offering up plenty of incentives in the way of additional cloud storage space. Dropbox Basic accounts are awarded 500 MB per referral and can earn up to 16 GB of additional storage, while Dropbox Plus and Professional accounts can receive 1 GB per referral and can earn up to 32 GB of free storage.

Customers can even track the status of their own referrals that they’ve sent, which allows them to have the ability to follow up with anyone that they’ve sent an invitation to without Dropbox ever being directly involved.

3. Tesla

Tesla

Tesla’s overarching goal is to “build the best clean energy products”, and its referral program goes hand-in-hand with that objective. Current customers can share their referral link via the Tesla app, which – like Dropbox – allows them to track the status of their sent invitations as their Loot Box rewards.

Rewards include 1,000 miles of free Supercharging with the purchase of a new Tesla car for both the referrer and the new customer, a $100 reward for the activation of a new solar energy system or Solar Roof, as well as a $400 award for each solar referral. A Powerwall can be earned for the referral of 10 solar customers, which is more than a lucrative enough incentive to keep current customers referring potential new customers.

4 Tools Companies Can Use for Referral Marketing

Getting starting with a referral marketing program can seem like a daunting task – but it doesn’t have to be. There are plenty of available tools that allow you to hit the ground running with your referral marketing strategy, all of which allow you to customize and configure your program as much or as little as you want. Here are a few solutions to check out:

Referral Factory

  • Website: https://referral-factory.com/
  • Price: 15-day free trial, then from $95/month

Designed for small to medium-sized businesses, Referral Factory makes it “easy for any business to build their own referral program.” You’re able to choose from 1000+ referral program templates, or create your own with your company’s branded colors and logo. Just set up your rewards, and you’ll be set to track your referral campaigns in real-time. This is a great tool to start your own affiliate marketing program.

Friendbuy

  • Website: https://www.friendbuy.com/
  • Price: 30-day free trial, then from $249/month

Friendbuy believes that “referrals are your best channel for dynamic business growth”, and puts its money where its mouth is with its refer-a-friend program. Automated rewards fulfillment and A/B testing are just some of the features that Friendbuy provides, with the ultimate goal being marketing your company through customer engagement and word of mouth.

Ambassador

  • Website: https://www.getambassador.com/
  • Price: Unavailable

Ambassador allows you to turn your best customers into brand ambassadors by segmenting them into categories such as “customers, affiliates, influencers, partners, employees, and other advocates.” These roles are incentivized and tracked in real-time, allowing you to make the most of your referral program while further understanding who your customers are and creating more opportunities for engagement.

Mention Me

  • Website: https://www.mention-me.com/
  • Price: Unavailable

Mention Me aims to drive referrals throughout the entire customer journey, incentivizing current customer referrals whether they are new happy customers, or long-time, repeat customers. With reporting and analytics tracking your customers’ purchasing behavior, you’ll have plenty of actionable insights to pull from.

Think back to the last time you referred someone to a product or service. What was it? How did you tell them? Share your findings in the comments below:

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Sujan Patel

Sujan Patel is a partner at Ramp Ventures & co-founder of Mailshake. He has over 15 years of marketing experience and has led the digital marketing strategy for companies like Salesforce, Mint, Intuit and many other Fortune 500 caliber companies.

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Daily Search Forum Recap: June 28, 2022

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Here is a recap of what happened in the search forums today, through the eyes of the Search Engine Roundtable and other search forums on the web.


We have yet another unconfirmed Google search ranking update rolling out now. Google said near duplicate URLs with canonicals still can lead to the wrong URL ranking. Google seems to be adding pros and cons to some snippets. Google Shopping Ads is testing a brand/merchant slider. Microsoft Bing autocomplete tab is awkward.

Search Engine Roundtable Stories:

  • Google Search Ranking Update Brewing Again June 27-28th

    After maybe four or five days of calm, we are seeing new signs of more larger Google Search ranking algorithm tremors and volatility. This new one seems to just be kicking off, some of the tracking tools are already picking up on it and we have chatter from within the SEO community about a possible update on June 27th and today, June 28th.

  • Google: Near Duplicate URLs With Canonical Still Can Lead To Wrong URL Ranking

    There is an interesting thread on Reddit on a topic we touched on here several times, the topic of Google ranking the wrong version of the URL in Google Search. It all stems back to the URLs you want Google to rank being near duplicate to the URL Google ends up ranking.
  • Google Adds Pros & Cons To Search Result Snippets

    Normally when someone sends me a sophisticated search result snippet from Google and I dig in, I find a reason for how Google came up with this snippet. But it seems like in this case below, Google is being a bit more sophisticated and showing pros and cons in the snippet without the web site having mentioned pros and cons specifically.

  • Google Shopping Ads Tests Retail Brand Slider

    Google seems to be testing a new feature for shopping ads, where as you slide through the shopping ads carousel, it shows you which stores retail brands are being displayed.
  • Bing Autocomplete Tells Searches To Use Tab To Fill In

    Microsoft Bing is testing a new annotation in the autocomplete search results to communicate to searchers that they can tap the tab key to finish the autocomplete without clicking on the term. Here is a screenshot of this that I can replicate – no you cannot click on the word “tab” but using tab on your keyboard does do the work.

  • Mundo Bita At Google Brazil Office

    I saw this photo on Instagram, used Google Lens to figure out who this cartoon character is and discovered his name is Mundo Bita. They were at the Google Brazil office I think for some YouTube subsc

Other Great Search Threads:

Search Engine Land Stories:

Other Great Search Stories:

Analytics

Industry & Business

Links & Content Marketing

Local & Maps

Mobile & Voice

SEO

PPC

Other Search

Feedback:


Have feedback on this daily recap; let me know on Twitter @rustybrick or @seroundtable, you can follow us on Facebook and make sure to subscribe to the YouTube channel, Apple Podcasts, Spotify, Google Podcasts or just contact us the old fashion way.





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Marketers want better features from their martech solutions

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How did you change up your stack? Take the 2022 MarTech Replacement Survey


Marketing organizations are still doing it. Ripping out martech solutions in favor of alternatives with better features, better integration capabilities and more data centralization.

And that includes mission-critical solutions like marketing automation and CRM.

The 2022 MarTech Replacement Survey showed a continuation of some of the trends detected in 2021. Organizations are still re-training team members to handle new technology rather than bringing on new hires. Proving ROI has always been important, but the importance is growing. Businesses are still switching from homegrown to commercial technologies. And the voice of marketing operations is getting louder.

Solutions replaced. It never ceases to surprise us to see so many marketing teams facing the challenge of trading their existing marketing automation and CRM platforms for something new. It’s easier to swap out SEO tools, and that’s the third most frequently replaced category in this report.

Up this year was the replacement of project management, ABM and e-commerce platforms — but respondents seem to have figured out virtual events in 2020 and 2021, because there was less activity in that category in this latest report.

A deep dive. The survey, based on responses from almost 300 marketers, not only looks at which solutions were replaced, but also:

  • The key reasons for the changes.
  • Who championed the changes.
  • How the new implementations were managed.
  • How long the replaced solutions had been in place.

Download the 2022 MarTech Replacement Survey here. It’s free and requires no registration.

Why we care. Marketing technology is no longer a nice add-on that supports campaigns and creative initiatives. In fact, it stopped being that a number of years ago. The martech stack is at the center of marketing, determining what marketing organizations can attempt and achieve, defining viable and exceptional strategies, and creating the conditions for success — or failure.

Within the constraints of budgets and the need to demonstrate ROI, every savvy marketing team sees the stack as something constantly evolving and hopefully improving. You’re all on a journey — what we are humbly trying to do is help show you the way.


Get the daily newsletter digital marketers rely on.


The 2021 MarTech Replacement Survey is here.


About The Author

Kim Davis is the Editorial Director of MarTech. Born in London, but a New Yorker for over two decades, Kim started covering enterprise software ten years ago. His experience encompasses SaaS for the enterprise, digital- ad data-driven urban planning, and applications of SaaS, digital technology, and data in the marketing space.

He first wrote about marketing technology as editor of Haymarket’s The Hub, a dedicated marketing tech website, which subsequently became a channel on the established direct marketing brand DMN. Kim joined DMN proper in 2016, as a senior editor, becoming Executive Editor, then Editor-in-Chief a position he held until January 2020.

Prior to working in tech journalism, Kim was Associate Editor at a New York Times hyper-local news site, The Local: East Village, and has previously worked as an editor of an academic publication, and as a music journalist. He has written hundreds of New York restaurant reviews for a personal blog, and has been an occasional guest contributor to Eater.



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Mundo Bita At Google Brazil

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Mundo Bita At Google Brazil


I saw this photo on Instagram, used Google Lens to figure out who this cartoon character is and discovered his name is Mundo Bita. They were at the Google Brazil office I think for some YouTube subscriber milestone.

I found the character interesting and fun so figured I’d share it here.

This post is part of our daily Search Photo of the Day column, where we find fun and interesting photos related to the search industry and share them with our readers.





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