How To Set Up An Effective Referral System For Your Startup?

By  |  October 1, 2018

If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.” – Jeff Bezos

Did you know that one of the best ways to get more customers is through referrals? It is natural that people would trust what other people say about a brand, rather than what the brand says about itself. Leveraging this can help any startup make more profits and increase sales.

Credit: Giphy

Most people would rather trust reviews from friends and families than adverts. An effective referral system or program is a must for every startup business.

Research shows that “92% of consumers trust referrals from people they know “.

Did you know that your target audience is more likely to ask their friends and families for recommendations when they are trying to make a purchase decision?

How do you then set up an effective referral system that would help you make more sales?

1. Have a wonderful product: Even if you don’t have a referral system or program in place, a good product or service would sell itself. Your product or service must be good and it must do what it says it does and even exceed the expectations of your target audience. This way, people would naturally recommend it to others.

2. Have a great customer service: When you have a great product but not a great customer service to match, it may be difficult to gain and retain customers or even get a good recommendation about your brand. Invest in a good customer service for your brand.

3. Recognize and appreciate your customers: You also need to get into the habit of appreciating and recognizing your customers. Send them ‘thank you notes’, appreciate them for being loyal, recognize them on their birthdays, etc.

4. Your design is important: Think about your product design, website design, and design in general. All these designs help to form a certain kind of mental understanding of your brand. Your design is important and it should be treated as such. It can either make or mar your brand.

5. Understand what your customers need more of: Before you set up a referral system, make sure you understand the kind of incentive that would entice customers. Understand those things they need more of so that you can integrate it into the referral system. For instance, do they need discounts, free product samples, more products, etc.? Make sure the incentive is something worth the stress.

6. Accessibility: It is important to make the referral program easy to find. One of the ways you can do this is by embedding it on your website home page, putting it on your social media channels, sending it vis your email marketing channels, etc.

7. Promote the referral system: Don’t just have a referral system and hope it markets itself, tell your customers about it, market it and make sure everyone knows about it.

Do you have a referral system? Let’s hear from you below!

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