Since the beginning of trade and commerce in the human civilization, and long before the age of google ads or even the printing press, the most widespread and effective method for a trader to be known to the market has always been word-of-mouth. It comes into play when an existing satisfied customer spreads the news about your business to those they interact with personally, by the word of their mouth. This makes your business acquire customers through direct referral.
Word-of-mouth marketing has always been and still remains the most compelling medium for the advertisement of a business. It has only one requirement for it to work out – that your customers are satisfied with your business and believe that their near ones can benefit by coming to your store instead of a competitor’s. If you can ensure that your customers are satisfied and loyal to your business, then you can truly count on their agency in promoting your business by word-of-mouth. There have always been brands and companies who do not invest in mainstream advertisement or marketing since they are aware of the power of word-of-mouth marketing. These are the brands whose names have become commonplace household words due to the number of satisfied customers that have become advocates.
How to use Word-of-Mouth as a marketing tool?
Getting advocates for your business is not easy, and ensuring that your customers are satisfied with your product or service is only the first step towards setting up a successful word-of-mouth marketing program. Once you have satisfied and loyal customers, it is now essential for you as a business to incentivize these customers to speak out for your brand and become advocates for your business to their friends and family. Part of the motivation for a loyal customer to refer their close ones to your business may be their goodwill towards these people. However, to ensure their referral it is important for you to make it rewarding for the advocates to do so. Loyalie’s referral program aims to optimize this process of incentivizing your customers to convert them into advocates, with a customizable referral plan that allows you to offer attractive rewards to both parties. By rewarding the advocates you motivate them to refer more clients to your store, clients who will also be motivated to try out your business by the rewards they will get on their first visit.
This is basically how a Referral Rewards program works!
A referral program like this can easily form an inroad for your business to gain the benefits of word-of-mouth marketing. When your loyal customers send a referral link to their friends and family, the advertisement for your company breaks right through the market noise it would have to encounter in print or digital media advertisements, and reaches the new potential clients directly. Additionally, when a potential customer finds out about your business from other media, they are always faced with a doubt about your quality. When they hear about it from a trusted friend or family member who is already a satisfied customer of your business, they can trust the opinions of these people much more than any advertisement by your company.
The probability that the potential customers will choose your business over other competitors becomes much higher due to this. Even though loyal customers only make up 5-10% of an average customer base, they are responsible for upto 90% of the total revenue of a business. Capitalizing on the acquisition and retention of loyal advocates is the most efficient way to optimize one’s marketing efforts with regard to marketing expense. When your loyal advocates work together with you to refer others to your business and earn attractive rewards for doing so, you can have a marketing model that is sustainable, efficient and reliable. It doesn’t depend on any media or organization for reaching new customers but instead uses word-of-mouth – the most foolproof method to ensure maximum leads conversion.
How to make it work?
With Loyalie Referral we can help you exponentially increase your customer base by optimizing your customer acquisition, engagement and retention as well as increase your overall market presence much faster and at a lower cost than everyday advertising solutions, since ad-space in both physical and digital media is limited and advertising costs are rising, whereas ‘word-of-mouth’ marketing advertises your product or service personally (at no extra cost)! Our AER (Acquire, Engage, Retain) program is designed specifically to exploit the advantages of word-of-mouth marketing using the most modern platforms for online marketing with the Loyalie App.
Using just one App, your customers can now get rewarded for their loyalty, refer their friends and family and earn rewards as well as stay updated about the latest deals and offers from your business through our sales feed. This makes us so much more than just a loyalty reward program that you save a significant amount of money that would otherwise have been wasted on ineffective marketing efforts, and by signing up with us you get the benefits of Loyalie Loyalty, Loyalie Referral and our integrated automated marketing services.