As a network marketer, you need to consider the power of what people think and say about you and your product or service offering. Positive or negative, the opinions of others can and will have a big impact on your business.
And while many customers may voice their opinions on their own, there are many that will need a little nudge to convert positive thoughts into positive outward communication.
That’s where having a great customer referral program comes in. But how do you create a referral program and what should you consider when setting up your incentives? Keep reading to learn more about growing your business with customer referrals.
Why Create a Referral Program?
As you probably know and as the name suggests, network marketing is all about building a network of quality leads and converting them to loyal customers. And generally speaking, the larger your network, the more customers you will have and the more revenue you will generate.
But sometimes people get stuck expanding their network. They often start with family, friends and colleagues and eventually find themselves with no one else to reach out to (raise your hand if you’ve been there).
Having a successful referral program allows you to reach beyond your immediate network and tap into the network of others through genuine reviews of your products and / or services.
How to Build your Referral Program
We know the benefits of having a referral program, but how do you build one and what should you consider? To get started, think about what you can offer as an incentive to your existing customers. To do this, try putting yourself in your customer’s shoes — what would you want as an incentive?
Try to identify incentives that are enough to motivate your customers without having a significant financial impact. You can also look for mutually beneficial incentives such as a discount on their next order — that way you get a new customer and another order while they are happy to get a discount on the products they know and love.
Educate Your Customers
You can have the best referral program in the world, but if no one knows about it then you won’t have any success. That’s why you need to take the time to educate your customers on your referral program.
Start with your most loyal customers that you know will stand behind your products and give you a good review. Tell them about the referral program and what you are offering. Be specific about the action that you want them to take and make it easy for them to communicate the right message to their network.
For example, if you are asking customers to post a message on social media, take the time to write the content for the customer. That way they don’t have to put a lot of thought or effort into making the referral and you get to control the messaging.
Take Your Referral Program Beyond Your Existing Customers
While your existing customers are a great place to start, you should also think about people in your network that aren’t customers, but would still benefit from your referral program. Think about the incentives that you could offer to this audience for recommending your products and / or services.
Sometimes a small reward can go a long way — something as simple as a $5 Starbucks gift card can let you reach a whole new audience.
Tracking, Learning and Adjusting
Once you have a referral program up and running, it’s important to track your success. See how many referrals you are getting in response to your program and how many of those referrals are converting into loyal customers. You need to measure your ROI to ensure that you have an effective referral system in place for your network marketing business.
If your system isn’t working, try making some adjustments in what you are offering. You can also talk to other distributors in your network to understand what is and isn’t working in their referral programs.
For More Help Tracking Your Network Marketing Referrals
As discussed in this article, creating a referral incentive is a great way to encourage your customers to recommend your products and help grow your network marketing business.
To help track your customers and send timely follow ups, including referral scripts, try using Kalypso today.