Do you know word of mouth? That is, recommend something (a brand or a product) to those who are part of your environment? This practice older than man has been used for years by sectors such as insurance, telephony, energy, and banking to make their business grow thanks to the recommendation. Due to its unbeatable results, many Retail and eCommerce companies are currently considering starting them.
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But What Is Customer Referral?
Customer referral is defined as a process by which a customer recommends a brand or a product to their environment in exchange for a gift, a bonus, a little attention, or a coupon. In fact, recommended friends, that is, prospects sponsored by existing customers of a brand, also receive a reward if they agree to enroll in the referral program. These actions have also been called member get member.
Why Launch a Customer Recommendation Strategy For Your Brand?
Customer referral allows you to meet several objectives: attract new customers at a lower cost and generate additional income, while improving the loyalty of your existing customers.
Attracting new clients
beyond the simple fact of attracting new clients, the recommendation of clients allows you to attract qualified prospects. Recommended friends already know your differential value since your brand/product has been recommended to them by a relative or trusted person.
Optimization of acquisition costs
As acquisition channels multiply, the most expensive solutions are not always the best. Customer referral is also one of the cheapest acquisition levers on the market, as the strength of this strategy comes from your own customers.
Increase engagement
a referral program allows you to quickly and easily identify your best ambassadors. You will be able to reward them in this way in their right measure and at the same time strengthen your relationship.
Also Read: AI In ECommerce will achieve Huge improvement in customer satisfaction
