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Use Referral Marketing - Stand Out from Competition (Part 1)


Let’s play a Mental Game. Think of the answer to Who Do You Trust ? You have 2 choices. Those paid results at the top of the Search option ? Or your own sister ? That banner on YouTube ? Or your best friend from college ?

This is an easy game. We trust our family, friends, and even strangers more than we trust advertisements and brands.

When it comes to making purchases, we’re all influenced by a number of different factors, which impact our decisions to varying degrees. Great copy on an ad might initially capture our attention, but likely won’t be enough to drive a sale the first time we see it. Seeing a chunk of positive reviews can be incredibly persuasive. A referral from a friend or someone we know personally, however, is what’s most likely to get us to purchase.

If you had me write down everything that I’ve purchased because someone I knew recommended it to me, this would be an exhaustingly long blog post. I’ve purchased everything from clothing subscriptions to mulch for my backyard to shower cleaner that my friends have recommended, and I’ve enthusiastically shared my favourites with them, too.

Just Think : To hire an electrician to install recessed lighting, would you rather find someone from a Google search or get a name from a friend who had their entire house rewired by someone last year ? Why ?

We trust our people network more than anyone else, which is what makes referral marketing so powerful. Many brands overlook this, however, hoping that WoMM is happening by itself or even worse – not being sure how to generate referrals. Can we change that. Definitely a big Yes.

Come to think of it – RM is easily the most beneficial and profitable form of marketing that you can take advantage of, whether your business is B2B or B2C. Keep this thought in the background and you will quickly realize the potential (92% of consumers trust referrals from people they know). This is backed by data.

Let me a share a little more
ü  77% of customers are more likely to purchase something new when learning about it from friends or family than any other source.
ü  Consumers are 4x more likely to purchase something when referred by a friend.
ü  Word of mouth marketing is believed to be behind 20-50% of all purchasing decisions.
ü  B2B businesses with referral programs have 69% faster closing times on sales and approximately 70% higher conversion rates than those who don’t.
ü  Referred customers have an LTV that’s 16% higher than non-referred customers.
ü  Customers that come through referral have a 37% higher retention rate than those who become customers in other ways.

To be continued in Part 2. Pls share your feedback & comments to drsunilpevekar@gmail.com

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