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Do Customer Advocates Bring In Sales Referrals?

Unlike traditional marketing, whose ROI is decreasing, referral marketing is one of the most innovative and cost-effective ways to source new business. Your advocates are your product’s biggest supporters and they want to help you succeed. That makes them the best source of referrals you can tap into at a minimum cost.

However, your advocates have a lot on their plate, juggling between work, family, friends, and other responsibilities. That’s why you need to be considerate when implementing a customer referral program as well as consider a proper incentive as part of the overall benefits and stimulation package. You should also consider the reputation and social status that advocates aim for as key drivers to the success of a referral program.

At the end of that journey you have newly referred customers who will grow alongside you and, eventually, become your advocates and refer other customers. Turning your happy customers into effective salespeople by reaching out to them, channeling their thoughts and experiences into effective content, and motivating and rewarding them, accordingly, is a smart way to earn more business in today’s skeptical world.

To attract more referrals, you could try some of the following techniques successfully tested by our clients and see which one works best for growing your referral list:

  • Create email campaigns and ask customers directly for referrals
  • Add a link to your referral program in your email signature
  • Create dedicated landing pages inside your community management tool
  • Ask for referrals on social media or inside blogs
  • Create targeted messages for your users in the members areas or accounts

You can organize referral request campaigns in many ways but always try to catch your customers at the peak of their delight and give them the necessary tools to share their preferences. In contradiction to conventional marketing, customer advocacy marketing relies on current customers as a referral base, turning them into influencers and eventually advocates, motivating them to speak on your behalf and provide potential clients with true value of their experiences.

As organizations come to realize the hidden potential found in establishing, nurturing, and maximizing quality customer relationships as well as the role they play in achieving growth, customers will no longer be seen as mere buyers, but as true assets, advocates, influencers, and contributors.

It’s essential to determine appropriate rewards for your advocates that can be in the form of vouchers, redeemable points, free goods, loyalty points, gift cards, charitable donations, gifts, and membership upgrades. Other less materialistic types of rewards function just as well if not better and are appealing to those advocates who are looking to climb the success ladder by pursuing new professional opportunities.

Some great examples of businesses that have successfully implemented referral programs are Deliveroo and Uber. The former allows customers to recommend the service to their friends either through a share button or a link that the clients can send to anyone they prefer. In a similar way, Uber has personalized invite codes for their customers’ friends in case they want to try the popular ride-sharing service.

Key takeaways on how customer advocates bring in sales referrals:

  • Referral marketing is a cost-effective way to drive results for your business and increase your customer base.
  • Get creative when promoting your referral program and make sure to reach out to your customers during their peak of delight.
  • Smart marketers maximize the relationship with the existing customer base gained as the result of an overtime investment; adding a personal touch to your marketing messages will help you get more referrals than though traditional mass marketing.
  • The effectiveness of a customer advocacy referral program is reflected in the overall low customer acquisition costs, client longevity, as well as sales and profit impact.

Related Knowledge-Base Articles:

Why Is Customer Advocacy Marketing So Effective?

In the 21st century, growth means setting yourself apart, where countless others are jostling for elbow space – this is true whether you are an individual professional, a startup looking for funding, or a well-loved consumer brand in the market. This is where customer advocacy can help your brand.

Power-up return on investment studies

A return on investment (ROI) study is the longest document that a brand will make based off the customer’s journey. It is a piece of content that describes clear customer results and metrics. You need this type of asset especially in the final stages of a sales, when the emotional brain has already decided to buy but needs some numbers to justify that decision to colleagues and management.

Hungry for customer advocacy marketing knowledge?

Browse through our resources library to learn about inbound recruitment, automating engagement tasks, getting internal buy-in, setting program goals and everything else you need to know to recruit, nurture and engage customer advocates.

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