Today, in the highly competitive business environment, word-of-mouth marketing remains a powerful tool for expanding customer base and increasing revenue. In this blog post, we will delve into the history of word-of-mouth marketing, explore the potential ROI of a well-executed referral program, and guide you through the process of creating your own referral program.
Word-of-mouth marketing has been around for a long time, but the way it happens has evolved. In the past, people would discuss products and services over their garden fences or in-person. Nowadays, word-of-mouth marketing takes place through digital channels. For example, users of a music app share their referral links with friends to earn rewards from the app.
To understand how word-of-mouth marketing has evolved, let’s look at two real-world examples. Coca-Cola’s “Share a Coke” campaign in the 2010s personalized their product with individual names, creating an emotional connection that prompted customers to share their experiences on social media. Airbnb also implemented an innovative referral program, offering travel credits to both referrers and new users. These examples demonstrate how brands can leverage word-of-mouth marketing to drive growth and establish strong customer relationships.
So, how can you harness the power of word of mouth for your own brand? Firstly, you need to offer a great product or service that deserves recommendations. Once you have a positive brand image, you can launch a referral program. Define what actions or behaviors make a successful referral for your business. Decide whether you want to implement a single-sided program that rewards only the referrer or a double-sided program that rewards both the referrer and the referred customer. Choose appropriate rewards and incentives that will motivate your customers to participate in your referral program.
Next, create all the necessary pages and assets for your referral program. You can build it from scratch or use templates or no-code tools. Automate and integrate the management of your referral program to streamline processes and avoid manual work. Run a soft launch initially and scale up once you have gathered feedback and made necessary adjustments.
Finally, promote and grow your referral program through various channels. Use email marketing to inform your customers about the program and provide referral links. Promote your program on your website through widgets and pop-ups. Take advantage of regular customer interactions to remind them about the program. You can also consider using referral program templates that align with your campaign strategy.
By following these steps, you can tap into the power of word-of-mouth marketing and leverage it to expand your customer base and increase revenue.
Today, in the highly competitive business environment, word-of-mouth marketing remains a powerful tool for expanding customer base and increasing revenue. In this blog post, we will delve into the history of word-of-mouth marketing, explore the potential ROI of a well-executed referral program, and guide you through the process of creating your own referral program.
Word-of-mouth marketing has been around for a long time, but the way it happens has evolved. In the past, people would discuss products and services over their garden fences or in-person. Nowadays, word-of-mouth marketing takes place through digital channels. For example, users of a music app share their referral links with friends to earn rewards from the app.
To understand how word-of-mouth marketing has evolved, let’s look at two real-world examples. Coca-Cola’s “Share a Coke” campaign in the 2010s personalized their product with individual names, creating an emotional connection that prompted customers to share their experiences on social media. Airbnb also implemented an innovative referral program, offering travel credits to both referrers and new users. These examples demonstrate how brands can leverage word-of-mouth marketing to drive growth and establish strong customer relationships.
So, how can you harness the power of word of mouth for your own brand? Firstly, you need to offer a great product or service that deserves recommendations. Once you have a positive brand image, you can launch a referral program. Define what actions or behaviors make a successful referral for your business. Decide whether you want to implement a single-sided program that rewards only the referrer or a double-sided program that rewards both the referrer and the referred customer. Choose appropriate rewards and incentives that will motivate your customers to participate in your referral program.
Next, create all the necessary pages and assets for your referral program. You can build it from scratch or use templates or no-code tools. Automate and integrate the management of your referral program to streamline processes and avoid manual work. Run a soft launch initially and scale up once you have gathered feedback and made necessary adjustments.
Finally, promote and grow your referral program through various channels. Use email marketing to inform your customers about the program and provide referral links. Promote your program on your website through widgets and pop-ups. Take advantage of regular customer interactions to remind them about the program. You can also consider using referral program templates that align with your campaign strategy.
By following these steps, you can tap into the power of word-of-mouth marketing and leverage it to expand your customer base and increase revenue.