Today, most eCommerce stores are using different social channels to explore the market so as to promote their business. Since these channels are relied upon by referral marketing, the two fit seamlessly together, lowering consumer churn rates, increasing earnings, and consumer loyalty.
What is referral marketing?
The fundamental concept of this type of marketing is to enable partners and customers to refer your business. This notion makes use of word of mouth because it motivates customers to speak about your brand.
The simplest way an eCommerce business can take advantage of this magic is by equipping consumers with the required tools such as referral marketing.
Below are 4 reasons eCommerce stores should use referral marketing:
1. Return customers
Referral marketing generates repeat shoppers. Particularly if the motivation used is a return price reduction. When somebody refers a friend, it’s a quite clear sign that they prefer your business and are more prone to purchase from you once more. When a return incentive is given in addition to that, creating return buyers is guaranteed.
Referral marketing may also help establish the relationship between the company and the buyer. It is a mutually advantageous system, where all parties see the advantage of taking part, says Peter Stevenson, a digital marketing manager at A+ Digital.
2. Easy implementation
The marketing software has the process of setting up a referral program easy and efficient. By using referral software, most eCommerce companies can easily include a referral program to their website without being concerned about working from scratch or coding.
Since most eCommerce stores are already monitoring their customers, it makes the process of referral marketing ideal for eCommerce. This means implementation of the referral marketing software into the process is simple.
3. Less expensive marketing
People like to boast about great experiences. That boasting is an effective way to get your business recognized with the use of word of mouth marketing, an important element of marketing. Usually, consumers refer their friends who they believe will be interested in your business or likely to be in your intended market. This means that you do not need to exert the effort to get these people on your own.
If a referral turns into a buyer, they can then become part of your referral program. Chances are they will share with their friends your information.
4. Boosts your Emails
Odds are your eCommerce business has already set up trigger or drip emails for specific events or actions. Most companies prefer to streamline this procedure to mention and market their referral programs. Since your emails are being viewed by prospects, it is an effective way to increase the engagement of referral program.
More exciting, companies who use confirmation emails and email receipts have a better opportunity at marketing their referral program. The reason being transactional emails have a higher rate of getting opened by the customer over other forms of email.