How to do Business with Referral Marketing?

How to do Business with Referral Marketing?

The New York Times states that 65% of new business comes from referrals. This means that on an average two thirds of consumers make purchases because someone recommended the particular product or service. Referral marketing has remarkable potential; it is observed that people are four times more likely to make a purchase when referred by a friend. Preparing a strategy for referral marketing and using it properly enables professionals to tap into the power of consumer recommendations to achieve exceptional results.

So, what is referral marketing?

what is referral marketing?

Ever heard of word of mouth strategy?

Word of mouth is a marketing strategy that occurs when one person tells another person about a business and so on. It is basically a free advertising triggered by customer experiences. It is perhaps the oldest and most trusted marketing strategy. Referral marketing produces the same effect as word of mouth but unlike word of mouth it is initiated and directed by a business.

Referral marketing is a process where customers are encouraged and significantly increase referrals through word of mouth. It is a marketing tactic that makes use of recommendations and word of mouth to grow customer base through the networks of existing customers of a business. This can be accomplished by encouraging and rewarding existing customers and other contacts to recommend products and services to potential customers and B2B brands both online and offline.

Due to technologies now a days businesses can track customer behavior online and make marketing strategies based on it. Online Referral marketing can increase brand awareness, referrals and also revenue. It focuses on interactions between customers. The internet provides a various outlets such as company’s website or social media platforms like LinkedIn, Facebook, Google and Instagram to customers to share their experience, opinions and favourite products. It is beneficial if the marketing plan of a company integrates referral strategy in it. Companies can track user traffic to offer referrals to online customers. Referral marketing helps your unique business ideas in becoming successful.

unique business ideas

Study shows that Customers who are referred by others are more profitable and remain loyal to the company than normal customers. Referred customers have greater contribution margin, greater retention rate and are more valuable both in short-run and long-run.

Referral programs generally provide two types of rewards:-

  1. Current customers are given incentives such as cash, prizes, discounts, shopping vouchers or redeemable points.
  2. Referrers can benefit from existing customers through increased visibility or recognition, or by special treatment.

Good referral marketing and business strategy can make a difference and lead your business towards success. You need to have a referral marketing strategy because: –

  • Sales through word of mouth strategy are five times more than through paid advertisement.
  • Customers acquired through referrals spend twice more and make twice as many referrals themselves.
  • The conversion rate through referrals are 30 better and have 16 percent higher retention rate than leads acquired through other channels.
  • People usually prefer word of mouth if they plan to purchase based on single information.
  • Referral marketing is cost-effective, powerful and trusted.

Customers who are happy and have a good experience with a brand, product or service frequently share it with others. Recommendations and referrals are useful if you want to stand out from the crowd. Satisfied customers through referrals can be easily turned into convincing cheerleaders. It is powerful selling point to others if your customers are happy with your product and are getting good return on investment on the money spent on the product.

A properly organized referral program helps businesses get new and loyal customers at a very low cost. Referral programs incentivize happy customers to share their feelings in exchange for a small gift. But the programs are not just about sharing feelings. The referral programs also generate substantial and tangible return on investment. The referral programs not only bring in new customers but they bring good loyal customers. A few advantages of referral marketing for business are: –

Referral Marketing
  • Customers obtained through referrals are better matched. They are more likely to interact with people similar to themselves.
  • The referrers are existing customers who understand the purpose of marketing and the need for potential clients. They can measure a good fit between the two. The well matched customers can help to produce more profits at a lower cost.
  • The value and contribution acquired through referred customers are more than those from non-referred customers.
  • Customer satisfaction can be defined through referral programs. If many customers are willing to act as referrers this means that the company’s customer satisfaction is high.
  •  Referral programs also enable businesses to establish long term relations with customers. The company can know the expectations of customers and raise the effectiveness of marketing programs. Referral programs can also be used a tool for retaining customers.

Seeing the benefits you all must now be wondering how to create a good referral program for your unique business ideas?

unique business ideas?

We at Evolvers have listed down some of the best ways to create a successful referral program for your business: –

  1. Keep it simple: – Your customers must be able to quickly understand what you want them refer and what are the incentives provided for referrals. The explanation should be concise but should contain all the necessary terms and conditions.
  2. Display a clear and enticing call to action: – Effective call to actions easily catches the customer’s eyes, incites customers to refer and share the incentive. The CTA must be easy to find. It can be put on top of the referral page.
  3. Offer valuable cost effective incentives that tie right back to your business: – Consider incentives for both referrer and the friend (double- sided incentive) and cumulative incentives like offering store credits, service credits, gift cards and discount. One can also consider offering free products or services but only after many successful referrals.

You can also convert the experience into a game by point system wherein a customer has to obtain certain number of point through referrals in order to receive a benefit or any other exclusive perk. Charitable donation can also work as a referral incentive. For example, with every referral the company will donate certain amount to a NGO.

Remember never to underestimate the intrinsic reward of friends helping friends.

  • Make social sharing efficient and easy for customers: – Your customers should able to share your referral program easily on social media. Integrating social sharing to the referral program increases the impact.
  • Seamless integration: – Even the most loyal customers would not want to participate if the sign up for the referral program and then find that there are five more steps that they have to complete before collecting their reward.
  • Promote your program: – Creating a referral program is not just enough. You need to spread the word out about the program for customers to know about it and participate in it. One way to do this is by triggered or time based email campaigns.
  • Use your business position to your advantage: – Your business also has a unique personality. Inject your personality into your referral program. Consider using feel good messages that focuses on helping friends and your business. The messages can include friendship or community focused images.

You can also emphasize on being a part of a community in your referral program messaging.

Referral Marketing

Thus Referral Marketing is important. It is a cost effective marketing strategy which has a greater reach and higher conversion rate. Its helps build strong customer relationship and loyal customers.

Referral programs are effective because people trust word of mouth more than any other source of information. A referral program simplifies the recommendation process and makes it more official.  Your customers can share your business with friends and family at just the click of a button.

If you want to know more about referral marketing strategies and other marketing strategies then you can contact theEvolvers Experts. The evolvers team focuses on addressing the needs of business and helps them to grow. Click Here to learn more.

startup business ideas

What Is The Right Time To Start A Business? What’s Holding You Back To Start?

Every business owner wants to expand the venture possibilities. But do you possess the right resources to accomplish the task? I find that young entrepreneurs strive to develop sound startup business ideas, but they fail to focus on other vital elements. I can make an effort to point you in the right direction.

Many youngsters feel that a bankable trade plan can pave the path for success. The truth is far from this. My experience says that a sound venture plan is a primary vector. You must focus on other aspects as well if you desire holistic success. Heed my warning – it is a competitive sector. The rivals can use your mistakes to their advantage.

Many budding business enthusiasts ask me for tips. I advise them to form a preliminary business strategy. But they need to get the opinion of the experts. It often becomes challenging for youngsters to detect policy loopholes. A specialist can go through the model and highlight the business challenges. They also provide solutions to fix the issue. 

Evolvers tries to help business owners. We believe that the growth of the country depends on the development of trade and commerce. Here, you can converse with experts, associated with every business sphere. They can assess and boost the potential of your venture.

Reasons to Set Up Your Business

People ask me, “what is the right age to start a company?” According to my observation, young people desire more to establish their own companies. Indian youth is no longer obsessed with finding jobs. My experience says that a private venture offers more benefits than a job.

Here are the top reasons why one must consider a startup.

Take Charge

If you work in an office, you need to report to your seniors. You have to wait for their approval. It lessens your potential and enthusiasm. If you establish and run your business, then you can eliminate these hindrances. You can call the final shots. People will report to you for validation. It boosts your confidence and pushes you to do better. 

More Earning Potentials

tips for successful business

A job in the corporate sector comes with limited income scope. No matter how much effort you put in, you get the same salary. The business owners can increase their income without hassle. I suggest that you opt for lucrative startup business ideas. It boosts the chances of sales and profit generation. If you invest time and effort, the venture can generate significant revenue. 

Balance Professional and Personal Life

Most professionals complain that they fail to spend quality time with friends and family members. They need to work longer to complete the project within the deadline. It becomes rather challenging to manage personal life. You can strike a balance between work and personal life if you run a business organisation. You can work hard and party harder with your loved ones. 

Work With the Best

You cannot choose the people you work within the office. You may suffer because of their incompetence. If you manage a venture, then you can select the best employees. You can assess their abilities. You must conduct interviews and evaluate their past experiences. It allows you to choose proficient employees. Such workers help in the development of the business. Several top entrepreneurs in India have the same opinion.

Challenge Yourself

Many young business enthusiasts ask me, “how to become a successful start up?” I suggest one must revise the business plan at regular intervals. You need to keep a tab on the market conditions. If you desire business success, then you must push yourself. Consult with the business experts and revamp your policies to stay at the top of the game. Business owners must challenge themselves and strive for betterment. 

Take Calculated Risks

business tips for success

You need to step out of your comfort zone and assess the market possibilities. Calculated risks increase the chances of profit generation. You need to study the market condition and realise what the target customers need. You can develop a campaign strategy as per the reports. I believe that calculated risks also increase market exposure and brand image. 

Contribute Toward Community

I attend as many trade conferences as possible. I converse with top entrepreneurs in Indiaand budding business owners, as well. I get to learn many things from these groups. Over the years, I realised that business owners could contribute to societal progress. Big and small companies discharge their community responsibilities. It brings a smile on the faces of the destitute.

Connect With Clients

top profitable business

If you are a people’s person, then you can flourish in the business sector. The venture offers several channels to communicate with clients. It can develop strong bonds and create a loyal client base. 

Right Age to Become an Entrepreneur

I meet several business enthusiasts who possess top profitable business visions. When I ask why they did not start the venture, they highlight the lack of experience and resources. Many assume that the chances of business success increase if they gather expertise. The truth is far from this. I suggest that you must start as soon as possible.

People, in their 20s, must take the first step towards venture establishment. You are young, enthusiastic and energetic. You can learn new skills faster. You need not worry about family obligations. Thus, you can invest more time in business development.

Young business owners may make several mistakes. I believe these errors can impart useful knowledge. It is best to learn from your flaws. It ensures that you will not make the same blunder again. Youngsters can work hard and travel to a different place, which offers possible growth opportunities. The preliminary years may be tough but pave the path for valuable experience.

I ask business enthusiasts to read the biographies of top entrepreneurs in India. These contain valuable information. Their success stories can motivate you. These stories highlight that these visionaries never waited for the right time. They used the available resources to get the best output. Youngsters do not take risks as they fear financial loss. I believe that profit and loss are integral parts of any business.

You must take the necessary steps to safeguard your investments. A watertight investment plan decreases the chances of monetary losses. Apart from this, you need competent campaign strategy development and implementation. Tracking these vectors helps you to alter the policies. These business tips for success can work wonders for your venture.

Challenges that Young Entrepreneurs Face

The conversations with budding business enthusiasts assist me in detecting their problems. I help them with information that may come to their rescue. If you desire to establish your business, get ready for some tough times. These are common hindrances that young business owners face. However, you can get the upper hand on these challenges with the assistance from the business advisors.

Flawed campaign Strategies

best future business ideas

A lot depends on the business policies and campaign strategies. However, you may lack the skills and expertise to select the best tactics. You must hire business advisors to overcome this challenge. When the health and growth of the venture are on the line, do not take any chances. I suggest you leave the campaign management task to the professionals. 

Lack of Fiscal Resources

top entrepreneurs in India

You must implement the best future business ideas as soon as possible. Most business enthusiasts do not possess adequate money for the venture. I think one must save a sufficient amount for establishing the business. At Evolvers, we can offer economic support to entrepreneurs. If you possess the will and determination, fiscal inadequacies cannot deter your plans. 

Time Management

business challenges

It is another aspect that novice business owners fail to accomplish. Lethargy can pave the path for the downfall of your venture. You need to manage time and pay attention to all business aspects. You must work to solve these issues. You must make time to conduct meetings with clients and investors. 

Business Rivals

It is not wise to assume that another individual cannot develop a business idea that resembles your vision. You need to deal with the competitors in a subtle manner. It is best to stay away from mudslinging. You must keep an eye to assess their moves. A business owner strives to stay ahead of the rivals. 

Though young venture owners see rivals as a hindrance, I have a different opinion. Top entrepreneurs in Indiasay that competitors are necessary evils. The desire to stay ahead of the opponent can push you towards betterment. 

Non-Cooperative Partners

A right business partner can catapult the growth of your venture. If you fail to select the right person, then it can do more harm than good. Business partners can assist in business administration. They can provide financial support. I suggest you assess the competence of the probable partner. It is one of the valuable tips for successful business that I had received.

You need to ensure that the person has the same interests. If he/she is ready to share the burden, then you may consider a partnership. You need to prepare the legal document that highlights the terms of the association. Do you desire to set up a new venture? Are you looking for financing? Do you want to consult with top business mentors? If yes, then you need to talk to the experts at Evolvers. They can offer sound and practical solutions to eliminate the challenges. 

Author:- Sandeep Sagar

business tips for success

Business tips for success- Every Entrepreneur Should Follow

Nowadays, many people are following the trend of launching their own business. Some are targeting bigger platform while others are simply small business owner. Likewise, every entrepreneur should strive to stay atop of every industry.

Doing business is not always easy; therefore, each entrepreneur should follow the business tips for success. It is essential to understand the modern business landscape. Know the keys, strategies, and tips for a successful business for beginners before making any decisions.

The future of your business rest on your own ways of dealing with it. As a business owner, you have to acquire skills of networking and creating strategies.

With entrepreneurial ventures, today there are common moments of doubts and uncertainty, that emerges. Take some time and look back at some business tips for success every entrepreneur should follow.

How to Achieve Success in Business?

tips for successful business

Flexibility, good planning, and organizational skills are vital to achieving success in business. It is not easy to start a business and make money. Doing business requires time and planning before undergoing the activities.

Below is a brief description of common steps that will guide you and understand the business tips for success as an entrepreneur.

1. Keep A Record and Stay Organized

Be sure to keep detailed records about your business. The records will aid you to understand where your business stands financially and the potential challenges you could be facing. Another critical factor for the success of every business is to stay organized. Create a to-list for daily tasks and check off all that you have completed.

2. Be A Visionary

Always keep the big vision in sight. Having a great vision of your business will take you far. As an entrepreneur, things can get challenging. Thus, you need to persevere to keep on moving. Success will drive your way when you have perseverance and the good spirit of moving forward regardless of the discomfort and fear of failure.

3. Prepare to Make the Sacrifice and Understand the Risks or Rewards

Starting a business requires hard work. You have to put more time into your work, which means you have to sacrifice your family, and leisure time. Moreover, understand the risks and rewards that will help your business. Know the downside of calculated risks that can generate rewards.

4. Be Flexible in Your Business Plan

good business tips

When starting a business, as an entrepreneur you need a few sets of plans. This includes a business plan and a marketing outline. These are important blueprints for the success of your business. The documents will help you advance on the major landmark of your business. Be always flexible when you require altering some information provided.

5. Customer Service Is Key

tips for successful business

Many successful businesses usually fail in providing customer service. Better service offered to customers will result in the growth of your business. For a company to make money and profits, consistency is the key element. Every business owner should create a long-term positive attitude.

Tips and Tricks for Successful Business

Prior to the launch of any business, you are likely to get advice from everywhere. Aiming to become an entrepreneur is usually overwhelming but also frightening. Considering some business tips for success is important. Some basic suggestions describe below to ensure that your new venture in business is a success. Spare some time and learn about the advice on successful business tips and tricks.

1. Acquire Legal Counsel

Take some time and research lawyers having experiences in representing businesses. Having the right legal counsel to assist your business is very important.

2. Employ an accountant

One of the important factors when starting a business is to get financial advice. An accountant will guide you and ensure you are aware of some financial obligations.

3. Seek quality staff

Every business requires employees. However, as an entrepreneur be always meticulous when choosing your staff. Seek for quality staff to help you with your work.

4. Promote your business

As a new business, you should take some time to market yourself. Make use of social media and your contacts to promote your business. Deliver quality customer experience to get back other reliable customers.

Strategies for Success in Business

successful business tips

To point out, business tips for success requires careful thoughts and planning. The development and implementation of strategies for success in business are key components of business planning. This should be part of your written business plan. Common business strategies include marketing, managing expenses, receive payments and continuously developing your skills.

1. Market Your Business Effectively

As an entrepreneur, make sure to devise and develop an effective marketing strategy. This is important to stand out of the competitive marketplace. Determine what makes your business stand out from the rest. Create a network with the like minded and with the probable targeted customers. Networking Platform Evolvers help you to connect with appropriate pool of people. Focus on the different marketing efforts that require remaining among the best. Create uniqueness in delivering outstanding customer service, or you have specialized knowledge in the field.

2. Stay Away from Unnecessary Expenses

Stay Away from Unnecessary Expenses

Always be wise when it comes to managing your expenses. Have your accountant to deal and manage your finance. Unnecessary expenses should be the bottom line in every business. Do not waste money on large liability insurance policy or recruit additional employees for work that can be outsourced.

3. Get Paid for Your Work

After providing any service or successful completion of work, you should get payments. Develop and implement some procedures to be sure that you get payments promptly. When you take a piece of work, consider asking for a small portion of the payment before you begin to work. With the advent of new technologies, encourage the use of credit cards by your customers to make payments.

4. Invest in Your Education

good business tips

To keep up with the changes in doing business such as coping with current technology and developments, continue to learn. Get the skills to be successful in running your business. Focus on self-improvement, which involves taking management training. Learn about new products and trends as they reach the market.

Dealing with business is not an easy task. Join Evolvers network of seeker and givers to resolve issues. As an entrepreneur, you should arm yourself with the necessary information relevant to business and follow tips for successful business. Every entrepreneur should consider the above as Good business tips for 2018 to succeed in his or her business.