Referral Advertising Is the New Referral Marketing
Truly, referral advertising should be the center piece of any referral marketing plan. In fact, it should be the advertising cornerstone. Furthermore, it’s critical to generating leads and business.
Indeed, most business owners don’t truly understand the advertising power of referrals. Moreover, most businesses don’t engage in referral marketing
The Power of Referral Advertising: Referrals Are A Form of Credible Marketing
In my opinion, trust is a “transferable” feature when it comes to referrals. If a friend trusts a company, then why shouldn’t they? Even if the company was not well known, trust can be transferred instead of earned.
Overall, there can not be enough said about trust in sales. Trust, in most cases, has to be earned. Whereas, referrals involve the “transfer” of trust based on someone else’s say-so. Equally important, this is referral advertising working at it’s best. Additionally, a business can grow because customers do the “work” of referral marketing.
Referral Advertising: Using Customers As Referral Marketing Brand Ambassadors
Again, many of the fortune 500 companies employ well-liked celebrities. And, celebrity endorsements can bring in sales. Too, when companies have these endorsements, the celebs become “brand ambassadors” for that brand and product. Why celebs? People love celebrities. People trust celebrities.
On balance, when a company has the endorsement of customers, it encourages patronage. While many customers may not be celebrities, they are spokespersons. Equally important, it’s these people who can provide needed referral revenue.
Referral Advertising Means More Money
For sure, referral business tends to spend more money with a referred business. Why. Trust. People feel they have “less to risk” based on a referral. Referrals trust their friends. Too, friends of friends must be “good people” too. It’s just human psychology. It’s all about relationships. Identically, relationship trust can be shared by a network of people. I call this concept the “Referral Advertising Relationship Trust Factor”. Yeah, a little long, I know. But, there it is.
Not to mention, referrals mean serious business. These are referral buyers NOT shoppers. In a way, these buyers have somewhat been “qualified” by your referring customer. To say nothing of it, it’s nice to have customers constantly prospecting for a business owner.
Referral Advertising Is Cost-Effective
Generally speaking, referral marketing is the best kind of referral advertising. It saves money. A lot of money. Uniquely, the cost of a referral is mostly always free (or a fraction) of what expensive, traditional advertising costs.
How to Reward Referrals
Certainly, it’s always nice to give a gift that keeps on giving. Referral rewards have really become popular. Indeed, many people are getting in on the act. Referral growth is the new advertising for the future. Programs such as “Refer-A-Friend” are popular.
Comparatively, another reward is the monetary referral advertising reward. Some companies will payout a small amount of money to refer customers. It works well. In fact, it’s worked so well, it’s made PayPal a powerhouse company.
In the same fashion, I worked with a real estate company that used a postcard campaign. The postcard was mailed to an entire neighborhood. Interestingly, it was called the “Pick Your Neighbor” Program. Coupled with open houses, it worked splendidly. Neighbors could view the property and a buzz was created. Neighbors could literally pick their neighbors. Incredibly, it was a “neighborhood referral” campaign that worked well.
Other Great Referral Advertising and Marketing Ideas
All in all, here are some ideas when it comes to referral advertising and marketing:
(1) First, and more simply, just ask for a referral. Additionally, make it part of your routine. One may not always be provided. In essence, asking customers can and will lead to more referral business.
(2) Correspondingly, create a marketing strategy. For the most part, it can be as little as a $20 reward. But, I recommend something thoughtful. Ordinarily, a dinner gift card or move pass is always a nice gesture. On balance, referring customers remember these more as thoughtful “gifts” than rewards.
(3) Certainly, follow up via phone, mail and ask for referrals.
(4) In any event, give out a few business cards to each client. Clients can pass the extra cards to referrals. You can even put a referral offer on the back side of the card.
A Superior Referral Advertising Campaign for Loan Officers and Real Estate Agents
When I started working my business, Home Sweet Home, our team wanted to focus on referral marketing as well as referral advertising. Consequently, it became a primary focus. And, after some time, a reality.
All things considered, we researched marketing strategies, examples and ideas. No doubt, giveaways were always an option. By the same token, a referral network would be awesome too. Given these points, we knew referrals would work. So, it’s the same with advertising.
What do loan officers and real estate agents really, really care about? In summary, GROWTH. This takes BOTH referrals AND advertising. What if Home Sweet Home were to pay for a loan officer’s (or agent’s) advertising? We could fund the advertising program on a group or company basis (based on referral volume)!
The Referrals-In-Exchange-for-Advertising Program Is Born
By and large, Home Sweet Home would accept referrals from loan officers and agents. Overall, these referrals would be turndowns for home loan financing. For the most part, we would put these non-qualified referrals through the Home Ownership Program. In the end, those referrals can ultimately qualify first time home buyer.
In the final analysis, our referral advertising bonus is based on loan officers’ and agents’ referral marketing volume. Altogether, Home Sweet Home would pay up to $10,000 to pay for a referral advertising campaign for our network referral partners.
In conclusion, it’s a win-win-win for all parties. Loan officers and agents close more business. Home Sweet Home, along with participating loan officers and agents GROW business volume. Truly, it all through a mutually beneficial referral advertising program. And, finally, referral first time home buyers can own the home sweet home they always wanted.
It’s a dream come true!