Best Practices for a Business Referral Marketing Program

While a business may have the best referral marketing program in place, it is vital to also understand how to organize them, respond to them and benefit from them. Learning some of the industry’s best practices in referral program management can be incredibly beneficial to your business in the short and long term.

Referral Approaches

In addition to the management and organization of a referral marketing program, it is vital to hone a system of approach for prospective consumers.

  • Proactive Approach – Proactive approaches include attending networking events, registering for online referral programs, attending seminars and more. The proactive approach can also include how an individual approaches their employees about any referrals they may have in mind.
  • Residual Approach – A more passive approach to a great referral marketing program is in a rewards scheme. While this may seem an active approach the activity stops once the program is created and implemented, from then on, it is a matter of collection and responses. Using online or offline methods of residual approach are possible and is best determined by a business’s geo-location and its possibilities.

The best type of approach is likely a generous mixture of the two. While networking with individuals in a word-of-mouth style is an old school scheme that rarely fails, the rewards program offers also offer a tried-and-true system of customer referrals.

Response Approaches

It is not enough to have a referral marketing program that leads your referrals to nowhere. Collecting referrals does little good for any business and the key to gaining converted customers from referrals is in a business’s response time and approach.

  • Rapid Response – When you receive referrals, respond to them immediately. Whether they will require an email, personal or even letter response matters little. Have a system in place before you begin a referral marketing program on how to respond to each type of referral you will receive and in which manner.
  • Rewards Response – If you have brought in referrals through a rewards program, make sure that your first response to that referrer is to either supply the reward, or consult with them about it if it allows or requires consumer personalization. Do not approach your new referrals with a sales technique before they have received their promised rewards.

Referral Program Organization

In a digital world options for referral marketing programs organization can be endless. Utilize every method available to your business to ensure top-notch organization and rewards from these valuable referral programs.

  • Multiple Submission Platforms – Eliminate wasted time and disorganization possibilities by making sure your employees have multiple options for submitting and managing referrals. Email, phone, text and web communications should always be easy to access.
  • Document Creation, Sharing and Backup – There are many free platforms such as those available through Gmail that allow for and encourage document creation and sharing across the board, or scope of your employee base. If your business is more established, you likely have an existing CMS to manage your resources. Have your referral system integrated in this for quick access as well. Always use a backup system to protect your business’s referral base.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture and Referral Marketing firm. He exemplifies how to profit from Joint Venture and Referral relationships by creating profit centers with minimal risk and maximum profitability.

Click here for more Referral Program Strategies to help you increase your profits.

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