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Social media is all about creating a community around the brand you’ve worked so hard to build. It’s where your greatest advocates reside and where you can find many of your most loyal customers. Referral marketing is all about tapping into those consumers that are willing to recommend your company. Whether it’s Twitter, Facebook, LinkedIn, Pinterest, Instagram or your email list, having a strong social media presence will give you a sense of where to find brand ambassadors that are willing to help you grow your business.
“Groupon, for instance, was able to become one of the fastest growing companies in the world by initially using Facebook advertising as their silver bullet, then shifting to referral marketing after they achieved a healthy customer base,” Forbes.com wrote.
An impression from a referral - online or offline - will typically generate more revenue than acquiring a customer through any other marketing avenue. Whether it’s B2B or B2C, tapping into your existing customer base can generate new revenue or create a quality lead opportunity. Referred customers also typically close quicker and stay longer.
According to the Word-of-Mouth Marketing Association, “A word of mouth impression drives at least five times more sales than a paid impression—and as much as 200x more for higher-consideration categories.”
“It’s less about searching for influencers; instead, [Ted Wright] suggests, look at the people who are already talking enthusiastically about your brand,” WOMMA added on their blog.
Where do those influencers who are already enthusiastically talking about your brand reside? You get the point: on your social media channels. They are the customers commenting on your Facebook post with their experiences or trying to have an issue resolved on Twitter. So, why not engage them to share your product with friends and family?
Having a strong overall social media presence will make it more likely that your brand ambassadors will spread the word about your product or service. But it requires some effort for that to happen.
“Give your customers a reason to like your page and follow you on Twitter. Show them you will be posting often and make sure to post interesting updates on a regular basis. This will give them a reason to engage with you,” wrote John Rampton of Forbes.com
Through your engaging content, customers will be more connected to you and have a loyalty that will produce tangible results. A successful referral marketing program results in increased revenue and new customers. These customers, on average, will spend 5x more than a traditional acquisition.