How do you create more referrals from your very valuable “referrers?”
Here are three suggestions from J. Andrew Petersen, assistant professor of marketing and assistant director for Integrated Marketing and Sales at the University of North Carolina at Chapel Hill Kenan-Flagler Business School.
- Aim at customers who’ve only given you a few referrals. The most active referrers don’t need an incentive to do what they’re already doing. It’s like offering a coupon to a customer who was going to buy the product already without the coupon. There’s better ROI in asking sometime referrers to suggest you to others more often.
- Keep referral marketing separate from product/service promotions. Don’t mix the message with appeals for customers to make purchases for themselves. If you just send out mass marketing to all customers, they’ll stop listening to everything you say. This is especially important because your customers who buy the most from you are not usually the customers who create the most value from referrals. This makes it imperative to target the right customer with the right marketing message.
- Adapt your marketing. Use the customer transaction and referral data to improve your capabilities for predicting customer transaction and referral value. Then each future campaign can become more targeted and more effective.
What are you doing to get more referrals from your referrers?