People like turning to recommendations when they can’t decide whether or not something is worth purchasing, so having a referral program is a no-brainer. That is why reviews and ratings have become an essential part of online transactions. And while marketers can’t control what most people type and comment, what they can do is advertise, but not in the way traditional marketing has been doing for years. Nowadays, marketers look for ways to drum up their company’s word-of-mouth marketing, which can perform better through referral programs.

How Word-of-Mouth Marketing Improves Through Referral Programs

The goal of word-of-mouth marketing is to get people talking about a business. The objective is to draw attention without shoving ads and content into consumers’ faces, as traditional marketing collaterals can only go so far. While incredibly creative or well-thought-of ads and content can work, most users naturally tend to ignore them or find them irrelevant in the online experience. But if someone close to them suddenly brings it up and shares their opinions on your product or service and recommends it to them, the more likely prospective customers will listen. Referral programs can help with that.

3 Ways Referral Programs Benefit Word-of-Mouth Marketing

1. Shares in Exchange for Incentives Is a Win for Everyone

One of the best ways to influence customers to share and advocate your brand is to offer incentives when they do. Nobody in this type of plan will walk away empty-handed.

For example, your referral program may include offering a coupon or voucher whenever someone who just ordered your products leaves a rating and comment. By taking a couple of minutes to do this, your customers can receive a discount for their next purchase in your store. 

Here is how your brand can win in this situation:

  • Customers leave their recommendations, increasing your item’s popularity.
  • The more high ratings and comments you get on an item, the more likely other customers would be willing to give your company a shot.
  • Discounts on the next purchase mean that customers can potentially come back to order from you again.
2. Makes Social Sharing Easier

Referral programs allow people to share your brand with the people they know. While it is natural for people to seek out recommendations for products, it is normal for people to want to share what they know. Referral programs enable people to share links to their social media platforms easily or even email them directly to people they know in real life. 

Make sure that your referral programs have call-to-action buttons for this. The easier you make it for users, the better it is for them and your business.

3. Targets the Right Crowd

Referral programs do not appeal to a passive market. They go after the people who are already on the hunt for the product or service you order. If a customer is satisfied with the product or service, they might recommend it to another customer looking for the same thing. Hence, word-of-mouth marketing becomes a success.

Conclusion

Getting your brand name on ads and videos is one thing, but having your customers do the marketing for you is a whole different level. Word-of-mouth marketing can earn you loyal customers and increase your brand awareness without spending a fortune. When you start using referral programs, your company can come closer to becoming a household name.

Referral programs can be tricky without the proper guidance and knowledge on how to run them. Luckily, there is a referral program software that can guide you through the process and get you the results you need. btwn is a unique referral app that anyone can use to increase their word-of-mouth marketing. Shopify users can now use the app on their accounts too. Create an account for free!

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