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Potential customers<\/a> are a lot more likely to use your services if they come from a referrer they know and trust. And these successful referrals can improve your customer acquisition, customer retention, sales, and the overall vitality of your business.<\/p>\n \u00a0<\/p>\n Compared to other forms of marketing, referral marketing is unique in that it uses your existing base of happy and loyal customers to attract potential leads. In exchange for a referral, the referring customer (or referral source) is provided some form of a reward.\u00a0<\/p>\n \u00a0<\/p>\n For small businesses, especially those in home services<\/a>, using referral marketing is a great tactic. Word of mouth marketing is powerful. Through effective referral techniques, you can incentivize your current customers to attract potential customers<\/a> to your business who are more likely to engage with you from day one.\u00a0<\/p>\n \u00a0<\/p>\n Customers that you engage with through referral marketing are also more likely to stay with you. In fact, referred customers are said to have a 37% higher retention rate<\/a> than customers gained through other means. When your happy customers spread the good word about your business, they indirectly act as brand advocates to their friends, family, and social circles.<\/p>\n \u00a0<\/p>\n In the long run, this can also help solidify your relationship with your customers.\u00a0<\/p>\n \u00a0<\/p>\n Still not convinced if referral marketing works? Here are three more powerful statistics that prove the power of referral marketing:\u00a0<\/p>\n \u00a0<\/p>\n For more powerful insights, check out our\u00a0referral marketing statistics<\/a>\u00a0article here!<\/p>\n \t\t\t So, why should your business leverage referral marketing? Here are all the reasons to inspire your efforts:\u00a0<\/p>\n \u00a0<\/p>\n Traditional marketing methods sometimes tend to be more expensive and time-consuming. Getting a customer to know your business and then trust your business<\/i> can be laborious. With referral marketing, you have that trust established much quicker. As existing customers promote your business to other potential leads, you won\u2019t have to spend as much of your budget on traditional marketing efforts and advertisements.<\/p>\n \u00a0<\/p>\n Believe it or not, other forms of digital marketing also tie in with referral marketing. For example, through text marketing<\/a> or even email marketing<\/a>, you can keep customers who are part of your referral program up to date. You can fine-tune your content marketing plan to engage referrers and incentivize them through new and exciting referral rewards.\u00a0<\/p>\n \u00a0<\/p>\n Referrers essentially act as influencers and brand advocates within their networks. The moment they speak about your business to a friend, they generate buzz that helps your business grow its loyal customers!<\/p>\n \u00a0<\/p>\n Through referral marketing, you may gain access to an audience that you otherwise may not have been able to tap into. Referral marketing has a powerful chain-link, word of mouth effect! Each satisfied existing customer acts as a link between your business and a potential, long-term lead. By establishing a referral marketing program, your business expands its chain, and with it, the chance to boost your profits!\u00a0<\/p>\n Did you know your referred customers can increase your profit margin by 25%<\/a>? For home service businesses, customers don\u2019t make one-off purchases. Most relationships are long-lasting due to the nature of the work being done and the requirement for annual maintenance, and more. Thus, landing just one referred customer can make a huge difference to your business\u2019s sales figures over the long run.\u00a0<\/p>\n \u00a0<\/p>\n Remember: The success of a referral program is dependent on your existing satisfied customers.\u00a0<\/p>\n \u00a0<\/p>\n You want to knock it out of the park with your customer service and nail your customer\u2019s expectations. This doesn\u2019t just mean while on the job, but also other relationship-building tactics you can use.\u00a0<\/p>\n \u00a0<\/p>\n For example, tap into your customer data records and send customers a gift card or surprise gift on their birthdays!<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Many businesses know about the importance of customer service, but don\u2019t actually incorporate this into their strategy. It\u2019s not enough to offer great pricing or quality of service for a job done. You have to go above and beyond to have your customers spread the good word about your business.\u00a0<\/p>\n \u00a0<\/p>\n It doesn\u2019t have to be extravagant either. For another example, on your website landing page, consider adding a live chat function. This will allow new customers browsing through to get in touch with you easily, too, ramping up your customer support.\u00a0<\/p>\n \u00a0<\/p>\n Pro-tip:<\/b> Check out Signpost\u2019s live chat service<\/a> to get you better connected with your customers!<\/p>\n \u00a0<\/p>\n \t\t\t A referral program is a formalized program used by businesses to incentivize existing customers to refer their business in exchange for rewards. These rewards can come in many forms\u2014gift coupons, discounts, and more!\u00a0<\/p>\n \u00a0<\/p>\n Source<\/a><\/p>\n Also called a \u201crefer-a-friend program,\u201d there are many ways you can go about building incentives for existing customers. Here are a few to inspire you.\u00a0<\/p>\n \u00a0<\/p>\n A\u00a0referral network<\/a>\u00a0comprises businesses and business professionals that act as potential lead generation sources, sending suitable clients your way! These businesses will be similar, but ultimately non-competing in nature to yours.\u00a0<\/p>\n \u00a0<\/p>\n Partnering with members of a referral network also increases the opportunity for affiliate marketing and exclusive partner programs. That is, you can exchange referrals for specific services.\u00a0<\/p>\n \u00a0<\/p>\n For example, if you\u2019re in the roofing business<\/a>, you can provide customers with information about a plumber<\/a> in your network, thus cross-promoting. They would do the same for you, leading to two-way referrals.<\/p>\n \u00a0<\/p>\n Some popular referral networks include:\u00a0<\/p>\n \u00a0<\/p>\n The value of social proof is indisputable. Today, customers want offline recommendations and <\/i>be able to verify the information by checking out a company\u2019s online reviews. They will look your business up on the internet and read the reviews and ratings from other customers.\u00a0<\/p>\n \u00a0<\/p>\n They\u2019ve gotten a glowing recommendation from a friend or family, but now they want an unbiased opinion. This is why the need to maintain and grow your business\u2019s online reviews is paramount.<\/p>\n \u00a0<\/p>\n Through Signpost, you can manage your online reputation like a pro<\/a> by partnering with us to help you respond professionally to negative reviews, grow your 5-star ratings, and more!<\/p>\n \u00a0<\/p>\n Unlike most digital marketing platforms, email marketing is more personable. Sending a message that will land directly in your customer\u2019s inbox means you have to make every word count. A referral message can be added to your email campaigns easily.<\/p>\n \u00a0<\/p>\n For example, if you\u2019re sending a customer a thank-you message for the business done, you can add a referral link. If they\u2019re happy with your service, they are more likely to recommend your business!<\/p>\n \u00a0<\/p>\n Pro-tip:<\/b> Opt for Signpost\u2019s marketing automation<\/a> service to take your overall digital marketing efforts to even greater heights!<\/p>\n \t\t\t \u00a0<\/p>\n \u00a0<\/p>\n Source<\/a><\/p>\n Make sure you show the referrer how much their referral means to you. Beyond the rewards you give them, go ahead and send them a thank-you note after you land a successful customer through their referral. It\u2019s good relationship-building and can encourage them to send even more<\/i> referrals your way!<\/p>\n \u00a0<\/p>\n Incentivizing referrals for your business means learning what your customers value and aligning your rewards on that basis. If you don\u2019t create a worthwhile incentive, your referral marketing program may never see the success you wish for it.\u00a0<\/p>\n \u00a0<\/p>\n A good incentive will:<\/p>\n \u00a0<\/p>\n For your referral marketing program to take off, your business must be customer-centric. Think wholly around your customers\u2019 wants and customize a referral program that suits their purchasing patterns, demographics, and behavior.<\/p>\n \u00a0<\/p>\n While giving away discount coupons or service upgrades doesn\u2019t seem like it\u2019d benefit your business, keep in mind that a referral program is all about incentivizing customers. <\/i>They are the magic of your referral program!\u00a0<\/p>\n \u00a0<\/p>\n Rewards and gifts are a necessary part of the referral process. And if successful, the cost of discount coupons will be well worth it.<\/p>\n \t\t\t Timing is critical when asking for referrals. One of the most effective times to ask for a referral is immediately after the service has been completed when the customer is running on a \u2018shopper\u2019s high\u2019 and has displayed satisfaction in your work.<\/p>\n \u00a0<\/p>\n Nailing that timing can make all the difference.\u00a0<\/p>\n \u00a0<\/p>\n Using automated referral marketing software<\/a> is a great way to introduce efficiency into your customer referral program. Investing in referral marketing automation can help increase the ROI of your campaigns and structure the rewards program more effectively.\u00a0<\/p>\n \u00a0<\/p>\n You will also be able to ensure the continued satisfaction of your customers by tracking metrics and continuously improving.<\/p>\n \u00a0<\/p>\n If you are building your referrals through a network, it\u2019s a matter of goodwill and ethics to pay it forward. Your referral network is a two-sided relationship.\u00a0<\/p>\n \u00a0<\/p>\n For every referral you get, try to pass them on!\u00a0<\/p>\n \u00a0<\/p>\n This increases growth opportunities for your business while simultaneously strengthening your partnerships\u00a0within the industry and your network<\/a>! It\u2019s a win-win for everyone involved.<\/p>\n \u00a0<\/p>\n You don\u2019t have to be an expert marketer to develop a referral marketing campaign. You also don\u2019t have to do it alone.<\/p>\n \u00a0<\/p>\n Signpost can help you take your home service business to the next level by automating your marketing efforts<\/a>, managing your online reviews<\/a>, and more!<\/p>\n \u00a0<\/p>\n Book a demo<\/a> with us today to get started on your journey!<\/p>\n\n
\n\t\t\t\t\t\tLearn how Signpost can help your business
\n\t\t\t\t\t<\/a><\/p>\nWhy Does My Business Need Referral Marketing?<\/h2>\n
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5 Referral Marketing Strategies<\/h2>\n
1. Perfect your business\u2019s customer service experience to improve positive word of mouth<\/h3>\n
Check out birthday gift coupon templates <\/i>here<\/i><\/a>!<\/i><\/p>\n
\n\t\t\t\t\t\tRequest a demo
\n\t\t\t\t\t<\/a><\/p>\n2. Implement a referral program\u00a0<\/h3>\n
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3. Join a referral network<\/h3>\n
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4. Maintain and <\/i>grow your business\u2019s positive online reviews<\/h3>\n
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5. Implement email marketing with built-in referral links<\/h3>\n
\n\t\t\t\t\t\tGet more Google reviews
\n\t\t\t\t\t<\/a><\/p>\nReferral Marketing Best Practices<\/h2>\n
1. Always show appreciation for your referral source\u00a0<\/h3>\n
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2. Know what your customers want from your business (making sure the rewards\/prizes are aligned with your customer base)\u00a0<\/h3>\n
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3. Incentivize the customer, <\/i>not just your own business\u00a0<\/h3>\n
\n\t\t\t\t\t\tLearn how Signpost can help your business
\n\t\t\t\t\t<\/a><\/p>\n4. Ask for referrals at the right time\u00a0<\/h3>\n
5. Minimize the customers\u2019 efforts and automate where possible\u00a0<\/h3>\n
6. Pass on the referrals<\/h3>\n
Boost Your Marketing Efforts with Signpost<\/h2>\n