A quick and easy guide to referral marketing

Referral marketing is gaining traction worldwide for its benefits to both the business and customers. It is a unique form of marketing that exposes a business to a broad customer base and helps the customer earn something in return. The higher the exposure, the more sales and goodwill for the company.

Refer and earn programs like the IDFC FIRST Bank's MyFIRST Partner Program also let you build your professional network while earning over Rs 50,000 every month via loan disbursal through referrals. Moreover, it requires zero investment and offers flexible working hours, which means you can easily build it as an alternative career. Programs such as these are an ideal source of passive income and can help you strengthen your finances. However, in order to benefit from these, it is crucial to understand how referral marketing works. 

Here's a simple guide on referral marketing that can help.

What is referral marketing?

Referral marketing is a type of marketing that businesses use to promote their products and services and get the word out. The strategy involves using existing customers to get more. When an existing customer introduces a new customer to the business, the former is rewarded with monetary compensation like a percentage of the sale. This helps the company grow and allows customers to earn money in the process. 

Types of referral marketing

Here are the different types of referral marketing strategies:

1) Direct referral:

A direct referral is a simple referral marketing strategy that allows businesses to create loyal customers. Direct referrals may or may not have a reward for the customer. In most cases, happy consumers are willing to refer their friends and family members in need of similar products or services out of pure customer satisfaction. This is quite organic. Other times, companies may encourage existing customers to refer their products and services in exchange for a free service, for instance, a free consultation. 

The IDFC FIRST Bank MyFIRST Partner Program is an excellent example of a direct referral program. As a partner, you can earn up to 1.5% of each loan disbursal you refer, and there is no investment in the program. As you keep helping people secure a loan, you can ask them for a referral. 

2) Incentive-based referral:

An incentive-based referral program rewards the customer for bringing in new customers. The rewards can be offered in the form of a discount, a cashback, or a percentage of the sale. 

3) Email referral:

An email referral can help businesses target multiple customers at once. This type of marketing involves companies sending emails to their existing customers with information on the referral program. The customers are informed about the different ways they can benefit by referring others. Some common examples include discounts on inviting new friends, free products on the first purchase of someone you refer, etc. 

4) Word of mouth referral:

There are two types of word of mouth referrals. The first is an organic appreciation by a customer that may lead to newer consumers. This happens with little intervention on the company's part. The second type of word of mouth occurs when a company motivates its customers to review its products or services. Loyal and happy customers are usually willing to leave online reviews on search engines and the company's website, which helps the business establish goodwill. 

5) Social media referral:

Social media referrals include asking customers with a high follower count to review your product or service. The existing customer is given a referral code that they can share with their followers. Every time a new buyer uses the code to purchase something, the existing customer gets a percentage of the sale as a reward. Social media marketing heavily relies on the loyalty of social media followers and the popularity of the person referring to the products. 

Now that you know the types of referral services, let's move to the next topic.

Referral marketing strategies

Here are some referral marketing strategies that can help you get more referrals.

1) Overcome the fear of asking:

A successful referral program depends on your persuasion and communication skills. There is no harm in asking people if they would like to purchase something. More often than not, you end up solving their problems. For instance, if you know someone who may require funds, referring them for a personal loan through the IDFC FIRST Bank MyFIRST Partner App can help them overcome a challenging situation. While you will earn money in the process, the person you refer also benefits. 

2) Leverage social media:

Social Media can be a wonderful place to reach out to multiple people. It lets you target your followers and friends as well as those you do not even know. The use of hashtags can help you get to people from anywhere and everywhere and build a network a lot faster than traditional means. 

3) Send targeted emails:

Email referral marketing can only be successful if you are precise and to the point in your emails. Most people are in a hurry when checking their emails. Spam emails with no meat or information can easily land in the trash folder. However, if you pick a customer base after researching the market and offer value, you are more likely to convert your email into a sale.  

4) Set up a rewards program:

Reward programs have a little something for everyone involved. It acts as bait to land more customers. When you offer genuine and valuable rewards, the individual is more than willing to refer your business to others. This way, not only do you get more customers, but you are also able to retain the old ones. 

5) Encourage user-generated content:

Pictures, videos, testimonials, etc., made by customers, give a personal touch to the word of mouth marketing. It helps others understand the use and practicality of your product better. Further, it adds an element of fun with storytelling, breaking the monotony of traditional sales pitches with no personalisation.

6) Build a robust customer retention program:

With increasing competition in the market, it is essential to attract new customers and create a dedicated base of consumers that stick with you for the long run. This can happen if you offer a good after-sales service and continued assistance to the customer whenever needed. 

Conclusion

Referral marketing can be very advantageous for a company. It helps to get the word out and create a sense of allegiance with the brand. It can help a business drive up sales and, at the same time, create an unparalleled place for itself in the market. However, in order to benefit from it, you must understand the right marketing strategies useful for your product. As a customer, if you wish to join a refer and earn program, make sure to pick a reliable brand to associate yourself with. For instance, the MyFIRST Partner Program by the IDFC FIRST Bank is a suitable choice as you get to work with a reputable bank, and that too with zero investment.

Download the IDFC FIRST Bank MyFIRST Partner App today, start earning money by building a referral network and join the 2 lakh+ users already benefitting from it!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.