Which is best? Referrals or direct marketing?

Businesses constantly evaluate their ability to adapt to newer technologies to reach more people. In India, two marketing models are popular: Referral and direct marketing. In the case of IDFC FIRST Bank, a trusted name in India offering affordable personal loans, the proof of the effectiveness of referral systems is evident. IDFC FIRST Bank’s MyFIRST Partner program is a testament to the power of referral services.

The MyFIRST Partner initiative has empowered over 7 lakh referral partners across India, enabling them to earn more than ₹1,00,000 monthly. With such success, IDFC FIRST Bank has helped referral partners explore ways to maximise their monthly earnings. IDFC FIRST Bank deposits pay-outs directly into the bank accounts of referral partners through the MyFIRST Partner app.

How is referral marketing better than direct marketing?
 

The MyFIRST Partner referral program helps referral partners earn a direct pay-out of 1.5% upon the disbursal of every successful loan referral. Go through the following pointers to learn how referral marketing is better than direct marketing at helping people earn an additional income:

1. Trust and credibility: 
   
   

   Referral marketing banks on pre-existing relationships. When a trusted friend, colleague, or family member recommends a service or product, it naturally carries more weight than a cold ad. Referral services, like the IDFC FIRST Bank's MyFIRST Partner program, tap into this intrinsic trust, making the sales process smoother and more authentic.
   
   

2. Cost efficiency: 
   
   

   Direct marketing, especially on mass media, is expensive. Referral programs usually offer compensation based on actual conversions rather than potential views. The IDFC FIRST Bank's referral business model is a prime example. By offering a 1.5% pay-out only when a referral culminates in business, the program ensures a better return on investment.
   
   

3. Targeted audience: 
   
   

   Direct marketing can sometimes feel like shooting arrows in the dark, hoping one hits the target. Referral marketing is more targeted. When someone participates in a referral program, they often refer to people from their immediate network who are more likely to be interested in the product. This ensures a higher conversion rate.
   
   

4. Sustainability and growth: 
   
   

   While direct marketing strategies may provide an immediate influx of customers, referral programs create a more sustainable and organic growth model. A happy customer, once part of the referral program, can lead to multiple new customers over time, amplifying the initial investment manifold.
   
   

5. Feedback loop: 
   
   

   Referral business is not just about getting new customers; it's also an effective feedback mechanism. Referral partners, given their proximity to the referred customers, can provide invaluable insights about the product or service, enabling businesses to improve continuously. With programs like IDFC FIRST Bank's MyFIRST Partner program, the bank not only gains new customers but also receives honest feedback to fine-tune its offerings.

Who is eligible to sign up for the MyFIRST Partner program?

For those keen on joining this successful referral program, the eligibility criteria are straightforward:

• The referral partner must be Indian:
  
  

  This program is exclusively tailored for Indian citizens, ensuring a local and more targeted approach.
  
  

• Must be at least 18 years old:
  
  

  To ensure responsible and effective partnerships, the referral partner should be at least 18 years of age, emphasizing maturity and understanding.
  
  

• Must have an Indian bank account:
  
  

  As the earnings from referrals are credited to the partner's bank account, having an Indian bank account is essential.

While direct marketing has its merits, the success of referral programs, as showcased by IDFC FIRST Bank’s MyFIRST Partner program, underscores the immense potential of referrals in today’s world. By ensuring clear communication, leveraging reliable technology, simplifying the sign-up process, and aligning with a reputable bank, referral partners can truly maximise their earnings. Any referral partner who meets the required criteria must consider signing up for this program to build an additional side income. 

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.