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?

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.

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:-

Current customers are given incentives such as cash, prizes, discounts, shopping vouchers or redeemable points.
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: –

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?

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

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.
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.
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.

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.

What is the first thing that you prioritize as a business owner? Some stress on the quality of goods/services. Others opine that client retention is most important. My experience says that many venture owners are unaware of business growth maintenance. At Evolvers, we help young entrepreneurs to attain this goal.

I communicate with business enthusiasts and startup owners on a regular basis. They ask me how they can establish a venture. Apart from this, they also want to gather information about operational policies. I advise them to develop a sound business plan. My company can assist with the creation and implementation of business policies.

A bankable idea and adequate capital can pave the path for the establishment of the venture. Proper marketing campaigns can attract the attention of target clients. I suggest you pay attention to lead generation. When you have substantial client leads, you can convert these with ease.

These steps play a vital role in the business operation. You require separate policies to sustain the business. Every business owner wants to rule the market. He/she must possess long term plans to accomplish this task. Lack of sustainable venture policies can cause financial losses. I suggest one must consult with the experts and develop sustainable business growth strategies.

What is Sustainable Business Growth?

Young entrepreneurs stress on the current business status. It is necessary to maintain quality and attain more clients. I meet many business enthusiasts who assume that fast business development is a positive sign. The truth is far from this. I suggest you maintain a stable growth rate.

If you expand the venture fast, it can pave the path for financial issues. It also mars the goods/service quality. Operational hurdles may crop up, as well. These problems can reduce the potential of the organization. Novice entrepreneurs may find it challenging to tackle numerous aspects with competence.

My experience highlights that one needs to follow the vital tips for a successful business. The trade and commerce sectors are somewhat competitive. You must take the necessary measures to stay ahead of the competitors. Entrepreneurs need time to implement these strategies. You must equip the organization to stand the test of time. Here, sustainable venture strategies come to your rescue.

I advise young business owners to consult with policy developers and analysts. They highlight that business owners must take one step at a time. It offers better control over the particular aspect.

The business analysts suggest that you must calculate the growth rate. If you maintain a stable growth rate, you can obtain better financial leverage. Apart from this, you can prevent operational obstacles. Sound techniques can sustain business growth and ensure overall success.

Fundamentals of Sustainable Business Growth

Not all corporate enthusiasts get the opportunity to acquire business management degrees. They can gather the relevant details from the internet. I often communicate with the owners of the top 10 startups in India. They suggest that business sustenance skills are essential for sale and profit generation. Before I offer information on this, you must understand the basic concept.

Authentic Purpose

Every organization needs a sound purpose. It propels the business in the right direction. It impacts every aspect of the company. A proper business purpose boosts profit generation. If you desire sustainable success, then you require a productive goal. It also improves your focus on organizational operations.

Brand Power

I believe that the business owner must try to establish an emotional connection with the customers. He/she need to pay attention to brand equity, as well. These are two essential basics of sustainable business progress. These components attach the target clients to your goods/services. If the link is secure, you need not worry about client retention. It, in turn, paves the path for the sustainable success of the venture.

Sale Repetition

You can attract the attention of clients with innovative products. Your brand image plays an integral part in its promotion. However, it cannot offer measurable results. If you want business sustenance, you must make repeat sales. I feel you can achieve this aim if you add new customers to the client base.

Community Building

Another fundamental aspect of sustainable business growth is to build a community. A commercial ecosystem encourages business owners to take calculated risks. It boosts the capabilities of the organization. Lack of a favorable business ecosystem can hinder the venture maintenance process. As more people join the brand community, the ecosystem becomes reliable and competent.

Flexible Policy Framework

Business analysts highlight that market conditions change often. A rigid strategy can hinder your business expansion. The top 10 startups in India develop a policy structure that is flexible. It helps the business owners to alter and develop the strategies with time. A flexible business policy structure can sustain the organization. Thus, it ensures the overall success of the venture.

Established corporate organizations have workforce and financial resources. They can hire experienced professionals to ensure the adequate development of the nitty-gritty. Small startup owners cannot afford it. My company can help such companies with sound guidance.

You can converse with business experts. They can evaluate the current standing of your company. Investment and sale records can predict future potentials. I believe that you need proficient mentors to attain business success. Our experts can highlight the benefits of business mentors. The counselors can make the necessary arrangements to fund your venture.

Essential Guidelines for Sustainable Business Progression

If you desire commercial success, you need sustainable business strategies. These plans can increase client base, sales, and revenue. Reports suggest that customers wish to associate with stable organizations. Here are some points which can assist with supportable business expansion

Balance New and Existing Ventures

I often get questions like what makes a business sustainable and profitable. It is rather challenging for any business expert to provide a simple answer. Many factors work in unison to maintain the stable growth of a company. It ensures a satisfactory revenue generation. I advise young business enthusiasts to invest in new ventures.

You can set up a new organization or invest the money as a partner in another company. It increases the chances of profit maximization. It can increase your workload and responsibilities. However, it acts as a contingency plan. It is imperative that you pay attention to the operations of both ventures.

Develop Solid Foundation

Sometimes business enthusiasts have impractical ambitions. It can obstruct sustainable business development strategies. I, along with commercial evaluators, feel that you must opt for achievable business goals.

what makes a business sustainable and profitable

However, you require a sound foundation to ensure target attainment. I believe no company can survive for long if it lacks a foundation. I suggest you gather relevant information about the benefits of business networking. It plays a comprehensive role to maintain venture relevance.

A business owner must set realistic and small targets. When he/she acquires one, he/she can move on to the next goal. One must strike a balance between future ambitions and regular business operations. If you ignore the present venture-related activities, you can lose the client base. It shakes the core foundation of the venture, and you cannot plan a sustainable expansion.

Constructive Partnership

It is impossible for an individual to manage multiple ventures. Every organization requires adequate attention. Failure to do this can mar the reputation and brand image. Apart from this, it threatens your sustainable venture development plans. I feel that a helping hand can come to your rescue. You need a proficient partner who can divide the workload.

A business associate can also reduce financial burdens. He/she can invest funds in the venture. It boosts sustainable business development strategies. However, the partner selection process is rather challenging. If the person has similar goals and has the desire to work hard, then he/she can become an asset for your company.

I meet many startup owners who are looking for suitable partners. Some want to form partnerships for financial reasons. Whether you require business associates or funding, the Business Networking Platform can meet your requirements.

Keep Clients and Employees Happy

You generate revenue when target clients purchase your goods/services. Customers are primary income sources. However, you require skilled and experienced employees to run the show. The success and profit generation depends on these significant components. You need to keep both parties happy to maintain the health and expansion of your venture.

Acquire Skilled Individuals

Skilled people are the lifeblood of any organization. The owner cannot attain business goals alone. He/she must hire experienced people who can support him/her. Experts highlight that a business owner must appoint the services of candidates who possess the hunger to flourish. The employees can work towards the betterment of the company.

However, the company owner must take the necessary steps to retain efficient employees. It is rather difficult to replace a good worker. The next candidate may lack the skills or determination. Lack of employee retention can weaken your sustainable business expansion vision.

Prepare for Trouble

It is necessary to prepare for any unpleasant situation. My experience says that business owners must develop contingency plans. You need to test the effectiveness of these strategies. One realizes the importance of networking for business growth during the hour of need. I advise young business owners to hone their trade networking skills.

Embrace Changes

If you fear change, you cannot survive in the trade sector. Flexible venture policies can pave the path for success and sustain it, as well. I suggest you make relevant changes in the goods/services, client retention techniques, operations, and marketing strategies. In case you have doubts, you must talk to the business analysts. They can shed light on the positive potential of the revised policies.

Do you desire to maintain the success of your venture? Do you lack proper vision and strategies to sustain your company? If so, then you must consult with the experts, associated with Evolvers. We offer the necessary assistance for business development. Apart from guidance, we can polish your networking and partnership skills.

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7 Tips for Sustainable Business Growth