If you own a retail store, you must do whatever you can to promote your brand and market your products. One effective strategy that plenty of businesses depend on is word-of-mouth (WOM) marketing.

WOM marketing is also called referral marketing, a traditional advertising tactic that has been around for a long time, even before digital marketing strategies became the go-to for businesses. In reality, consumers aren’t always interested in every advertising campaign they see, especially those that won’t offer them benefits and relevance in their lives.

Brands can’t easily sway consumers when they promote their products or services directly to them. Instead, people turn towards their family and friends for recommendations and fellow shoppers. If you want to create trust and acquire loyal customers, you should consider developing a referral program for your business.     

What Is a Referral Program?

When it comes to referral marketing, your goal is to keep buyers happy enough that they go out of their way and inform their friends, family, and social media connections about your brand. It’s about satisfying your customers to the point that they start sharing their thoughts on your products or services to other people without even asking them to do it. 

However, in reality, even though your customers enjoy their experience with your business, they won’t always remember to tell other people about it. This is where starting a referral program comes into the picture. A referral program is an organized procedure where you reward your customers through discounts and customized presents for telling other people about your brand.

How to Use Referral Marketing for Your Company

Do Your Research and Learn About Your Customers

For business owners who have been operating for a long time now, you may be familiar with handling different customers daily. When you accept new customers from referrals, you know they have similar needs as your previous clients.

It’s essential to note that your referral bonus program should reach the right people from the beginning. You can start with learning about your current customers, figuring out who among them stands as your most valuable clients, and determining if they’re bringing in referrals each day.

Aside from that, knowing your customers’ habits, interests, behavior, and demographics are also integral in developing an efficient referral program. That way, you can better understand how your audience thinks and customize the program according to their needs—thus achieving valuable and loyal referral customers in return.  

Focus on Providing Customer Experience

Whether you decide to offer the best referral program to your prospects, if the people you’re selling to don’t like their experience with your shop, it doesn’t provide value to your brand. Focusing on delivering exceptional customer experience is the key to effective and successful referral marketing. 

If you find more customers are unhappy with their store experience, they will most likely not tell their friends and family about your business. Despite your unique products or services and deals, they will prefer to stay quiet and move on to the next brand they see.

However, if you work hard to satisfy your customers’ needs and meet their expectations, they are more than glad to let other people know how amazing your retail store is. It doesn’t matter if you can offer additional perks in exchange or not because they appreciate your brand enough to promote it without expecting anything in return.

Launch an Easy and Convenient Referral Program

You have to understand that as a retailer, the incentives you provide your customers shouldn’t force them to make too much effort to refer someone and bring in more prospects for you. Instead, you should focus on incorporating referral marketing software that will make it easier for your current customers.

When they refer your brand to people they know to receive rewards in return, your program must avoid being complicated to both old and new prospects. Improving how you track your referrals and send out incentives and thank you notes are essential parts of a convenient referral program.


With plenty of competitors vying for the top spot in your chosen industry, settling for the second-best isn’t enough. When you take the time to understand how referral marketing and referral programs work, you will find yourself benefiting from them and witness your company slowly grow into a bigger and better business over time. 

Are you looking for the best referral programs to improve your retail business in the US? btwn offers a referral app that delivers rewards to your customers for referring people they know to support your company. Get in touch with us today to find out how it works!

What's new at btwn