How effective is referral marketing for an entrepreneur?

People trust other people's opinions and the recommendations of influencers they respect over advertising. Because of this, referral marketing, also known as word-of-mouth marketing is a powerful way to spread the word about a business or product. It's an easy way to attract targeted prospects while avoiding the usual marketing expense.



What benefits can referral marketing bring for an entrepreneur?

A referral marketing program can be an entrepreneur’s most effective way to raise brand awareness.

Because of this reliance on unpaid endorsements, it helps to reduce the costs associated with attracting new customers and starting off any relationship at a high level of trust.

Customer acquisition

Customer acquisition is what a business does to attract new customers. Acquisition cost is how much money it takes for them to get those customers.

More businesses than ever are turning to paid advertising, but it's becoming an increasingly ineffective channel because of privacy changes and diminishing returns on ad spend.

A referral program that priorities new customer acquisition can help reduce costs and increase lifetime value for both the business owner and their customers.

High intent prospects

A referral marketing program brings in customers who are likely to make a purchase. This is common for most referral programs: when one person makes the first purchase, it's likely that he or she has friends who will enjoy or benefit from that same product.

Instead of paying an advertising company to place an ad in front of potential customers, an entrepreneur can use social media and other online vehicles that already have large audiences.

Build trust

When a potential customer sees a paid ad, reads a blog post or receives an email in their mailbox, that person is essentially starting off with zero trust towards a business. When someone they already know and trust like a friend tells them about the benefits they received from a business, then that automatically builds up some good will on behalf of the company.

These programs encourage existing customers to become brand advocates by giving them incentives and a forum for expressing their enthusiasm. These programs lead not only to increased sales, but also repeat purchases.

What is the solution for an entrepreneur looking to use referral marketing?

The Eazi-Business Marketing Hub can help an entrepreneur looking to utilise referral marketing, by providing:

Referral marketing guide

An entrepreneur can download a comprehensive guide on referral marketing. They will also discover how to leverage established networks to increase revenue. This route to market is perfect for transforming a small customer base into a larger business.

Marketing campaigns

Entrepreneurs can access commercial resources that will enable them to launch referral marketing campaigns. The Eazi-Business industry leading marketing department have designed targeted messages and emails that are ready use.

Social posts and messages

Entrepreneurs can continue referral marketing on autopilot with weekly social posts and messages designed by the Eazi-Business team. They will take care of the content so an entrepreneur can focus on building their business. 

The Eazi-Business Marketing Hub offers entrepreneurs professionally created marketing collateral to increase sales.

It is a resource for establishing structure in an entrepreneurs approach to sales. It covers 5 recommended routes that entrepreneurs should utilize when growing their business.