Referral marketing is a highly effective method to increase lead acquisition. Essentially, it is a strategy that uses an existing customer base to gather more leads, using only word of mouth.
With all of the technologies involved in nearly every aspect of our lives, we can sometimes forget the effectiveness of word of mouth. Word of mouth is a powerful tool to have on your side. Consumers trust the word of their friends, families, and acquaintances much more than they trust an advertisement.
Perhaps the best way of nurturing a growing referral program is to use incentives. When you incentivize the right audience (think real estate agents, property managers, general contractors, etc.) with the promise of things like rewards and discounts, you can turn your customers into referral "cheerleaders."
Something as cost-effective as a few dollars off your listed price can convert into much greater return down the road. A popular strategy is the give $, get $ referrals. This motivates customers to refer friends, as they can earn rewards off their friends' purchases, and motivates new customers to buy with a discount.
There are many strategies to try, as each company is different. But when done right, you can set your company up for exponential growth in customer base.
If you don't already, we encourage you to experiment with different strategies to find what works for you, and take advantage of this powerful marketing tool.