With competition on continuous rise in domestic market as well as on global front, the operation costs also continue to rise rapidly. In such case for any business owner, the key to their survival is increase in sales figure by any sensible means. Advertising is one such significant component that not only helps in improved sales figure but also better conversion rate. However, it is can also prove to an expensive proposition if not chosen wisely. Referral marketing plays a key role when it comes to achieving the both the above mentioned goals of being cheaper and better conversion rate.
Although, the traditional method of marketing through TV and Radio advertisement has proved to be successful time and again, but the cost incurred is not very encouraging. Referral is a perfect alternative to this conventional method in return of incentives to already existing customers to spread the words. It serves as a perfect means to generate a low cost advertisement while your customers earn rewards for their endeavour. And in no time you will witness a queue of long customer profusely promoting your business. And thus, with every new referral, you will observe an exponential hike in the chance of fetching new customers. You will get all these benefits at the cost of small price and loyalty rewards to your customers.
The beauty of this method is that unlike watching the television and radio advertisements, people will get to know about your products and services through grapevine. The words of a friend has always been always more enticing and reliable than that of a salesman. And as per the statistics they are more likely to buy it. Hence, words of mouth and referral marketing serve as an ideal way for a business to retain the loyal customers and further gaining the new ones.
In fact, referral through social media websites has also become a vital way for recruiters to tap in high-quality employees and skilled candidates into the pool. The result is it cost much less the usual recruiting process owing to almost negligible advertising cost and a group of efficient and skilled employees.
“According to a Social Recruiting Survey conducted by Jobvite in year 2012, 43 percent of respondents replied that the quality of applicants improved thanks to social recruiting, and according to 20 percent, it took less time to hire. “
It is a general mindset among the recruiters that referrals usually bring in some of the best candidates and credit to social media, they are easier and quite cheaper to locate. Thus, the verdict, keeping in mind the above points is that a steady and well planned referral network leads to improved conversion rate and better and cheaper business.