If you wanted to buy a product or use a service, who would you trust more to give you an honest review of the business? Something that was written by a paid writer to talk up a company or a friend you know who has used the product or service before?

The answers to these questions are pretty simple—it is easier to trust someone we know than someone we don’t know. And the same goes for business. Customers are more likely to trust product reviews than advertisements.

Referral marketing can help you improve your brand trust and thus gain repeat customers. Without a doubt, this is one of the ways you can gain an advantage over your competition.

But how do you go about getting referrals for your business? Well, this is how!

What Is Referral Marketing?

We’ve all heard of referral marketing, but what does this term really mean?

Well, referral marketing is as simple as it sounds. One person refers a product or service to a friend, family member, or anyone they trust and encourage them to purchase it for themselves.

Think of it as getting your customers to do your marketing and spreading the word. Entice your current customers with special offers for bringing in new customers or just encourage people to share if they love your product or service.

Using Referral Marketing for Your Small Business

There are so many different ways to conquer your referral marketing strategy for your small business, so let's check out some of the best ways to guarantee referrals.

Know when to ask

While your customers may love your product or service, they may not even consider broadcasting it to the world. So give them a little push by asking for them. Don’t go overboard, however, as a simple ask will do.

Take a look at these excellent examples of a great ask:

Improve your customer experience

Provide your customers with peak service from beginning to end and be there to teach and guide them at each step. By having a killer product or outstanding service and a great customer experience, you’ll be getting referrals from your customers in no time.

Take the extra step to prove that you really care about your customers. Show them that you know what they are looking for and give it to them quickly and effectively. For example, try adding live chat to your website or offering support after a purchase.

Add a referral program

A referral program is a system that gives incentives to previous customers that have recommended your product or service to their friends and family. While implementing a referral program might sound overwhelming, it can be effortless if you follow these steps:

Once you have chosen an incentive, it’s time to start spreading the news! Get the word out there and your customers interested. 

Choose your incentive carefully

Your incentive is the most crucial part of your referral marketing. The incentive is what will entice your customers to be a part of the program. Think about your customers and what they would benefit most from and use that to determine the best incentive. Then, try out a few different things to see which gets the most engagement.

Make the referral process easy

If your customers can’t easily participate in your program, they probably won’t. Your process needs to be simple enough that it doesn’t inconvenience your customers. Give them all the tools they can use to refer you so they don’t have to spend time and energy to go find them.

Show appreciation for referrals

Yay! You got a referral, but the work doesn’t stop here. Make your customers feel even more special and thank them for the referral. It will make them feel important and want to refer your business again in the future.

Incentive Ideas

Not sure what to offer to your customers for an incentive? Try out some of these to see which work best for your company.

Store/subscription credit

A store or subscription credit is one of the most typical incentives in referral marketing. Offering your customers a store credit or a month free for referring their friends keeps them interacting with your business. The more they interact, the more they build loyalty and trust with your brand.

Product or service update

You can offer to upgrade the product or service they already have for referring people to your business. For example, say you have basic, professional, and premium for your pricing packages. If your customer uses the basic or professional levels, upgrading them to the next tier gives them more tools and features that they will greatly appreciate.

Charity donation

If you’re looking for something different for your customer, you could offer to donate to charity if they refer a friend. Some people enjoy sharing the love instead of taking it for themselves, and this gives them a great chance to do just that.

Ready to Get Those Referrals?

In the end, referral marketing is a great way to build your brand and expand your reach. Customers love to feel like they are appreciated, and referral programs can do just that. And when you can benefit in return, it’s key to integrate referral marketing into your digital marketing strategy. So try it out and see how it works for your business!