Acquire more customers
Word of mouth and referrals are two zero cost ways to gain new customers
Marketing
Word of mouth and referrals are two zero cost ways to gain new customers
Word of mouth helps in acquiring new customers at near zero cost. Referrals focus on existing customers to influence new customers. Uber got more than 50% of its customers through referrals.
Instead of paying money to Facebook or Instagram, the brand offers money to its existing customers. If an existing customer refers products to others, their social capital is at stake. Thus, new customers switch to the new products. Customers joining through referrals or word of mouth stay longer and are happier customers.
As per Courier’s Podcast: So if you treat your customers right and provide a product or service that your customers love, you should be able to effectively grow from doing a great job for your customers and referral is really about doing that.
Brands should not just offer cash to its customers to refer new customers. Referrals should be tied to the product or the service. A referral program is not a substitute for a bad product. It’s easier to build referral programs using existing platforms such as Mention Me. Experiment with the offers to get the right outcome.
Dig deeper: Word of mouth 101 Link