3 Mistakes You Must Always Avoid with Referral Marketing

by Joe The Goat Farmer

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3 Mistakes You Must Always Avoid with Referral Marketing

The most trusted form of advertising in the world – with over 80 percent of consumers ranking it at the top – is word of mouth. Unlike social media, email and other forms of marketing, though, these referrals are contingent on people being motivated to make them.

Luckily, there are ways to influence this type of behavior, but if you’re making the following customer referral mistakes, you’re hurting your business.

1. Not Offering Incentives

Word of mouth has long been a trusted form of marketing, but in many cases, people aren’t going to do it just out of the goodness of their hearts. Oftentimes, in fact, they never even give positive retail experiences a second thought.

This completely changes, though, if they’re incentivized to refer family and friends to a certain company. This could be a discount, free product or gift card for every person they refer to the business.

2. Not Utilizing Social Media

The term “word of mouth” seems to dictate one-on-one interactions in real-life situations. In the modern world, however, it’s simple for local businesses to progress their word of mouth via social media.

This could be anything from asking followers to tag a friend who would “Love this meal” or “Needs this car” to offering incentives for honest online reviews. The internet is a huge part of our daily lives, and you should remember that when trying to get potential customers sent your way.

3. Not Going the Extra Mile

Whether an individual was seeking recommendations or just given one out of the blue by a friend, it typically makes them feel special. It’s as if they’re in on a secret because they “know somebody who knows somebody.” Business owners need to keep this feeling alive.

It’s essential to go above and beyond for customers who have been referred. This will let them know that the recommendation was given in earnest, and they’ll be much more likely to return later.

Of course, the biggest word of mouth and referral marketing mistake is not having a strategy at all. Once you’re over that mountain, though, avoiding the aforementioned can go a long way in making you successful.