It’s a Continuum

Email, blogs, social networks, SMS, even the telephone are not separate islands of technology but overlapping communication channels. Recommending a restaurant, forwarding an email, telling a friend about a Web site or application- all of these things are referral marketing.

Referral Marketing Works

We trust a friend, family member or colleague more than we trust an ad, hired spokesperson, or magazine article. Not surprisingly, 26% of marketers plan to increase social networking and word-of-mouth. Over 70% of B-to-C marketers already have or plan to implement referral marketing functionality

We trust referrals. 90% of us trust word-of-mouth as best source of information on products and services. 75% of us would like more online offers and emails from our favorite brands. And 92% look online before we begin the purchase process.

It All Starts with Email

Email is the lingua franca of the Internet, and if you’re using email marketing, you’re using one of the most efficient tools to communicate with customers and prospects. If you want to increase the prospect pool, then use existing brand advocates, connectors and customers to build your database, generate interest and spur sales.

Step 1. Email and Strategy

If you are already sending email marketing messages, newsletters, etc., then you’re at the gateway of referral marketing. Sending relevant emails with the right call to action to a targeted list is key.  And make it easy for your subscribers to reach out to friends and colleagues.

Step 2. Initiate and Plan

Run a sweepstakes or develop a survey so that you can expand your marketing reach—and attract more stakeholders, customers and prospects. Alternately, you may decide to initiate a community site, use PR or social networking, or establish a rewards program.

Step 3. Introduce and Measure

You create a referral marketing campaign, or use referral marketing to build your customer database or run ongoing surveys. Peersuasion is our referral marketing platform, and we’ve seen some very good results for a range of clients. In planning your first referral marketing salvo, be sure to think about the metrics you will want to measure and compare. That will help you design and implement the right program.

Step 4. Let More Flowers Bloom

Go social, go offline. Use Facebook, Twitter, SEM, online ad units, offline marketing, and public relations to get the word out. Multiple channels and an open system make for a better referral program—and organic word-of-mouth. And don’t forget to tell friends and colleagues. You are your own best seed list.

Step 5. Integrate and Refine

Now you’re conducting steady profitable referral marketing. You use reporting and analytics tools to measure and make adjustments. You track results of social media and offline efforts. You segregate users by behaviors and send them tiered offers or market different products. You use Peersuasion (we hope) and revise your referral platform. You begin to segment user groups and dimensionalize products and services so that marketing is effectively customized for those user groups. You combine one-off campaigns to build lists with ongoing referral to keep in touch with your core audience and keep the referral lists growing. Your boss is happy. You’re happy. Your golf game improves unexpectedly.

Ready, Set, Refer

We’re here to help. Ask us about how to use referral marketing to grow and know your audience better.

Photo courtesy of Photo Mojo

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