What is referral marketing?

What is referral marketing?

What is referral marketing? Recommendation marketing plays on people's innate emotional chord, which is the love of sharing experiences with others. People are social creatures by nature, and they tend to tell friends and family if they had a happy purchasing experience, but it's not guaranteed to happen every time! We explain all this on the website Trianvo.

Statistics show that of the 83% who want to recommend a product they liked, only 29% actually do so, and we conclude from this result that it is not necessary for everyone who liked a product to tell others about it.

But in most cases, it will be forgotten over time and the matter will end for him, so recommendation marketing requires a combination of art and science during its practice to encourage the recommendation behavior that we target, which we will learn about in the following lines.

Read also: What is a feasibility study and its importance in business?

What is referral marketing?

Marketing through recommendations or word-of-mouth marketing is the marketing of a product or service using the positive impression that the consumer has and is reflected in his daily communication with others. It is a type of free advertising resulting from a good user experience that exceeds customer expectations.

The truth is that “free” in marketing recommendations is not with us at all! Sometimes, recommendation marketing uses some expensive tactics, such as paying a commission or offering gifts in exchange for a customer's recommendation.

Recommendation marketing may also include different marketing activities such as viral advertising, review writing, emotional marketing and social marketing as we will see. But mainly through marketing it can be used. Recommendations are more affordable compared to other types of marketing.

Advantages of referral marketing

We will mention in the following lines the advantages of referral marketing:

Builds trust in your brand

People trust recommendations from friends and family more than they trust paid advertising or salespeople, even in a review written by strangers about a hotel or restaurant, a reader trusts more than what they find on a website or tell them on a bulletin board. In other words, recommendation marketing surrounds your brand with a framework of trust that no other marketing method can offer.

Increases customer loyalty

Customers who come through recommendations tend to buy again and again, are 18% more likely to buy again than other customers4, and are more likely to accept the price without getting into arguments.

Brings quality to your target customers

Most of the time, like-minded people share experiences with each other, so if one of your customers decides to recommend your product to a friend, they will often recommend it to a friend who really needs it or expresses interest in that type of product. project. Also, if you are using an influencer to recommend your products, the interests of his followers are expected to be consistent with the personality and thinking of the influencer, and by targeting the right influencer you are indirectly ensuring that the desired audience is targeted.

How to shop with recommendations

Although the idea of recommendation marketing is simple, launching a successful recommendation marketing campaign requires some work to achieve good results, and many factors intersect to achieve this. Here are the most common practices you can do in recommendation marketing, and choose the mix that works best for you:

Read also: How to design attractive marketing advertisements?

Providing a high quality product

The starting point for recommendation marketing is the product or service offered. So people are not expected to recommend bad or poor quality products. For example, a new restaurant spent a lot of money on designing an attractive visual identity and luxury furniture. Restaurant hall, all these expenses may be in vain if the food served is not delicious. One review from an angry customer can distract many people.

Therefore, it is important that your product meets a need better than any other similar product. Or creating a new solution to a problem that has been around for a long time but is not receiving attention.

Be bold and ask for a direct recommendation

Some may hesitate to ask their clients to recommend it to others. But the solution here is to overcome the fear and anxiety that the customer will reject your request. And politely ask the customer to recommend you to others. And make sure that your order is placed immediately after completing the purchase before the customer forgets about you over time. It is also possible to let him know in advance that if he likes the product he will recommend your products to others.

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