Types of referral marketing
Any kind of marketing that involves customers recommending a product or service to other people is considered referral marketing. However, there are many different ways a business can use this kind of marketing to its advantage.
A few examples include:
- Direct referrals involve asking existing clients and customers to recommend the business, and providing them with a tangible reward if those referrals translate to sales.
- Tangible referrals include giving your existing clients and customers something tangible upfront, like a coupon, that they can share with someone they refer.
- Community referrals are an effective way for businesses to partner with local organizations that need support, while finding new customers at the same time.
The easiest and simplest form of word-of-mouth marketing is online reviews. In order for them to be effective, a business must actively manage them. For example, someone should respond to a negative review on the website with a solution to the problem.
Influencers can also be a powerful form of referral marketing. People who follow others online trust them to represent brands that are worth their time and money.