How to Build a Laser Targeted Referral System

A referral system is an effective marketing tactic that can have a very high success rate. It can bring in new sales leads from unexpected areas. Building a referral system involves much more than encouraging existing customers to talk about the products or services offered. It involves looking closely at the market and developing long-term strategies. Building a laser-targeted referral system involves several important steps.

Segment the Market

One of the most important steps is to carefully segment the market with good analytical data. It is important to identify the optimal customer and the common aspects of the groups these individuals embody. This will help to improve your return on investment (ROI) while also eliminating media channels and broader techniques that will not generate leads.

Develop a Referral Message

Successful targeted referrals should rely on a core message that relates to the brand and that is supported by the business. Companies do not want a referral system with a diffuse or scattered message because of the confusion it will create. It is best to develop a solid referral message that is communicated in a clear format to any client or partner who is being encouraged to drive leads to the business. Sharpening your focus on your core message is critical to the successful implementation of any referral system.

Distribute Promotional Products

Distributing promotional products to partners or targeted consumer segments is an effective part of an effective referral system. These promotional products could be small colorful business cards imprinted with quick response (QR) codes. But a better idea might be to give these people products they need and can use such as promo tote bags, which you can order via http://www.halo.com/custom-personalized-bags/custom-reusable-grocery-bags.aspx. These customized tote bags generate brand awareness and can include messaging and reminders about the referral program. This keeps the idea of referring sales leads top-of-mind with your target market.  The promotional items could even be used as rewards for referrals that become customers.

Provide Referral Incentives

It is not usually enough to request referrals. Businesses need to establish incentives for referrals of successful sales leads. The incentive could be a giveaway or premium promotional product, a discount on a purchase or preferred status for a customer. The incentives should extend to both the person making the referral and the new sales lead.

Conversion and Follow-Up

The final part of any laser-targeted referral system needs to include a conversion and follow-up strategy. The conversion strategy should including branding, incentives and additional marketing that encourages sales leads to become purchasing customers. Follow-up strategies include maintaining contact with sales leads across multiple channels such as social media, email or print mailings. Follow-up is important in order to increase conversion rates and improve lifetime values over time.