Referral marketing: the strategy that generates revenue!
Posted: Tue Dec 24, 2024 8:46 am
It may not seem like it, but Referral Marketing is a strategy that few companies invest in.
Not only them, but also several individual entrepreneurs.
Oh, and make no mistake, the reason it isn’t used is not because of the results…
Because, if done well, it brings a lot of authority and revenue to the cash register!
In fact, the reason people don't use this strategy is because they simply DON'T KNOW how to execute it.
I hope that, with this article, you will be able to job seekers database understand once and for all how to make a good Referral.
Let's go?
After all, what is Referral Marketing?
Referral Marketing is when your (customers, followers or anyone with close contact with your business) promote your product of their own free will.
This way, your product (or service) gains, in addition to authority, mass publicity.
PS : If you want to learn more about this subject, I recommend following Rodrigo Noll . He is an expert on the subject.
What benefits can Referral Marketing bring me?
There are several benefits, but I will list 4 + 1 tip to give you a clear idea:
1- Helps you save money on acquiring new customers.
Contrary to what many people think, bringing a former customer back to make a new purchase is much easier than acquiring a new customer.
I speak from experience, as I work at StayApp , a startup in Goiânia that has exactly this focus.
According to research , retaining a customer is 5x cheaper than acquiring one.
If you have a Customer Success culture and are able to retain customers on a daily basis, the chances of those same customers recommending you are huge!
2- It gives you greater chances of new purchases due to Referral Marketing incentives.
What weighs most in your purchasing decision :
Your friend/family member 's opinion ?
An advertisement on the internet, TV or even a billboard?
Read also: Why Invest in Chatbots for Customer Service
You don't need to answer, it's very likely that your answer will be the same as mine.
It turns out that trust, especially in the digital world we live in, has a big impact on purchasing decisions.
If your product is recommended, it is certain that this person will consider it as one of the great purchase possibilities .
Referral works exactly on that, on recommendations , and that is what will fill your cashbox!
3- More sales! Since it encourages your current customers to buy from you again.
There are several strategies within a Referral model.
One of them is the reward.
You may have seen it in several apps, websites or even from salespeople at the checkout:
“If you recommend this product/service to someone, you will receive R$ “x” to spend however you want…”
Encouraging recommendations is a great idea for your business.
Because in addition to (almost) guaranteeing a combined purchase, you also provide a benefit so that your customer will buy from you again…
And this time, his/her friend can also buy it
PRO Tip #1 – Define what reward you will offer:
As we saw in the cases mentioned above, Dropbox offered more storage on the platform, Uber offered R$20.00 off the next trip. What reward do you want to offer?
Discount?
Free shipping?
Cash back?
Another product?
Choose what makes the most sense for your business and see the results.
If you want to know other success stories or even hacks that I use daily, check out the FREE Growth eBook here.
4- Platforms (software) that are easy to configure and run.
When we talk about marketing automation platforms, we already think of programs that are complicated to use.
Read also: See the details of the first phase of Inbound Marketing: Attracting users (works well for small and medium-sized companies).
As incredible as it may seem, software designed for Referral marketing is very easy and practical to use.
If you don't have a platform to make rewards or alert former customers, you can do it yourself.
Will it take a while? It will. But the result will come anyway.
Success Stories [Dropbox and Uber]
Better than theory… only practice.
Want to see how Referral Marketing has helped big companies like Dropbox and Uber grow?
1- Dropbox
Dropbox is always a great case both in terms of Growth and Referral Marketing.
The successful platform uses these strategies very well.
In an effort to grow its customer base, Dropbox came up with the idea of giving away free storage space to brand advocates.
How did he do it?
For each referral, the user who referred would earn 500 MB of space , for a total of 16 GB.
And isn't it that this has become a craze?!
2- Uber
Uber acted in the same way.
You know when you create an account and discover that you have a code? And that if you refer someone you get R$20.00 off your trip?
Well, another example of how Referral helps any company/business to increase revenue, authority and popularity of the product/service.
PRO Tip #2: Hacks
It wouldn't be a Mercado Hack article if I didn't give you some valuable tips for you to use in your business, right?
So I thought about bringing 3 hacks from Rodrigo Noll , Referral Marketing Specialist , to help you:
Referral marketing works in both B2C and B2B . But, as with any other sales channel, the strategy for each business should vary, depending on its average ticket, type of sale and product;
Two-sided rewards are an important ingredient for your referral program to “take off.” Try rewarding not only the referrer, but also the person being referred. This way, your sales potential increases a lot;
Testing key moments can bring many surprises. Especially in SaaS, there are many opportunities to ask for a referral. This could be on a landing page, in your CS, in an NPS survey, or at the end of a success cycle.
Not only them, but also several individual entrepreneurs.
Oh, and make no mistake, the reason it isn’t used is not because of the results…
Because, if done well, it brings a lot of authority and revenue to the cash register!
In fact, the reason people don't use this strategy is because they simply DON'T KNOW how to execute it.
I hope that, with this article, you will be able to job seekers database understand once and for all how to make a good Referral.
Let's go?
After all, what is Referral Marketing?
Referral Marketing is when your (customers, followers or anyone with close contact with your business) promote your product of their own free will.
This way, your product (or service) gains, in addition to authority, mass publicity.
PS : If you want to learn more about this subject, I recommend following Rodrigo Noll . He is an expert on the subject.
What benefits can Referral Marketing bring me?
There are several benefits, but I will list 4 + 1 tip to give you a clear idea:
1- Helps you save money on acquiring new customers.
Contrary to what many people think, bringing a former customer back to make a new purchase is much easier than acquiring a new customer.
I speak from experience, as I work at StayApp , a startup in Goiânia that has exactly this focus.
According to research , retaining a customer is 5x cheaper than acquiring one.
If you have a Customer Success culture and are able to retain customers on a daily basis, the chances of those same customers recommending you are huge!
2- It gives you greater chances of new purchases due to Referral Marketing incentives.
What weighs most in your purchasing decision :
Your friend/family member 's opinion ?
An advertisement on the internet, TV or even a billboard?
Read also: Why Invest in Chatbots for Customer Service
You don't need to answer, it's very likely that your answer will be the same as mine.
It turns out that trust, especially in the digital world we live in, has a big impact on purchasing decisions.
If your product is recommended, it is certain that this person will consider it as one of the great purchase possibilities .
Referral works exactly on that, on recommendations , and that is what will fill your cashbox!
3- More sales! Since it encourages your current customers to buy from you again.
There are several strategies within a Referral model.
One of them is the reward.
You may have seen it in several apps, websites or even from salespeople at the checkout:
“If you recommend this product/service to someone, you will receive R$ “x” to spend however you want…”
Encouraging recommendations is a great idea for your business.
Because in addition to (almost) guaranteeing a combined purchase, you also provide a benefit so that your customer will buy from you again…
And this time, his/her friend can also buy it
PRO Tip #1 – Define what reward you will offer:
As we saw in the cases mentioned above, Dropbox offered more storage on the platform, Uber offered R$20.00 off the next trip. What reward do you want to offer?
Discount?
Free shipping?
Cash back?
Another product?
Choose what makes the most sense for your business and see the results.
If you want to know other success stories or even hacks that I use daily, check out the FREE Growth eBook here.
4- Platforms (software) that are easy to configure and run.
When we talk about marketing automation platforms, we already think of programs that are complicated to use.
Read also: See the details of the first phase of Inbound Marketing: Attracting users (works well for small and medium-sized companies).
As incredible as it may seem, software designed for Referral marketing is very easy and practical to use.
If you don't have a platform to make rewards or alert former customers, you can do it yourself.
Will it take a while? It will. But the result will come anyway.
Success Stories [Dropbox and Uber]
Better than theory… only practice.
Want to see how Referral Marketing has helped big companies like Dropbox and Uber grow?
1- Dropbox
Dropbox is always a great case both in terms of Growth and Referral Marketing.
The successful platform uses these strategies very well.
In an effort to grow its customer base, Dropbox came up with the idea of giving away free storage space to brand advocates.
How did he do it?
For each referral, the user who referred would earn 500 MB of space , for a total of 16 GB.
And isn't it that this has become a craze?!
2- Uber
Uber acted in the same way.
You know when you create an account and discover that you have a code? And that if you refer someone you get R$20.00 off your trip?
Well, another example of how Referral helps any company/business to increase revenue, authority and popularity of the product/service.
PRO Tip #2: Hacks
It wouldn't be a Mercado Hack article if I didn't give you some valuable tips for you to use in your business, right?
So I thought about bringing 3 hacks from Rodrigo Noll , Referral Marketing Specialist , to help you:
Referral marketing works in both B2C and B2B . But, as with any other sales channel, the strategy for each business should vary, depending on its average ticket, type of sale and product;
Two-sided rewards are an important ingredient for your referral program to “take off.” Try rewarding not only the referrer, but also the person being referred. This way, your sales potential increases a lot;
Testing key moments can bring many surprises. Especially in SaaS, there are many opportunities to ask for a referral. This could be on a landing page, in your CS, in an NPS survey, or at the end of a success cycle.