Three Effective Referral Marketing Techniques To Increase Conversions 

Looking for a cost-effective way to boost conversions? As a digital marketer or business owner, you might have tried increasing brand awareness through social media platforms like TikTok and Instagram, or even invested in paid advertising online. While these strategies can be useful, there’s another key element of marketing you should consider: referral marketing. Essentially, this strategy relies on the trust, influence and social connections of existing users to boost brand awareness and lead to more sales. 

In what follows, we break down three effective referral marketing strategies for your brand or business.

Direct referral programs

Direct referral programmes consist in asking a business’s existing customers to refer people in their social circles. Essentially, if a friend or family member signs up for the business’s services, the person who referred them will receive some sort of reward. 

The ride-hailing industry is known for its referral programs. Uber, for example, allows users to invite people they know by sharing a unique invite code. If the friend or family member completes a determined number of trips and meets other conditions, the original user will earn rewards that vary depending on location. 

The telecommunications industry has also embraced this marketing strategy, with Koodo Mobile and T-Mobile having successful referral programs. The latter brand rewards existing customers with up to 500 USD per calendar year for the first 10 referrals. 

In addition to existing customers, companies can also consider partnering with influencers or enlisting a brand ambassador to reach an even wider audience. 

Online reviews 

According to recent figures, about 98% of consumers read online reviews before purchasing a product. And, nearly 96% of them look for negative feedback specifically. Hence, it is crucial to cultivate a positive brand online reputation through reviews. While customer feedback is beneficial for all businesses, they are especially impactful in the hospitality, restaurant, e-commerce, home services and healthcare areas,  

While avoiding negative reviews is impossible, companies can still focus on encouraging customers to share their positive experiences with the service or product. There are numerous platforms where customers can publish their reviews, including Facebook, Google Business Profile, Yelp, Glassdoor and Amazon among others. 

Signing up incentives 

Another effective marketing tool to boost conversions is offering incentives to customers who sign up for services. Discounts, free products and other generous deals will both attract new customers and promote loyalty to the brand. 

Nowadays, streaming services like Hulu and Apple TV offer free trials to users who sign up for the first time to their platforms. This gives them plenty of time to familiarise themselves with the title selection and the product in general in order to decide whether they would like to pay for a regular subscription. 

When it comes to platforms like online casinos, new players can get welcome bonuses that are exclusively available to them. In addition, these platforms also offer a variety of bonuses to existing users, including reload bonuses, refer-a-friend bonuses, and loyalty and VIP programme-related bonuses (see more on this website). 

To conclude 

Referral marketing is a powerful and cost-effective tool to leverage a business’s existing customer base to build strong relationships with new ones. If you’re thinking about improving your referral marketing strategy or are just about to get started, consider building an effective referral scheme, focusing on building a positive reputation through online reviews and offering generous signing up incentives.