Referral is one of the Word of Mouth marketing strategies

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Referral is one of the Word of Mouth marketing strategies

Referral is one of the Word of Mouth marketing strategies

Referral is one of the Word of Mouth marketing strategies

Basically, referrals are one of the marketing strategies that have close relations with the Word of Mouth Marketing strategy. This method is claimed to be very effective in order to reach more customers. Why? Because Referral Marketing is not only able to provide benefits for the company.

This strategy is also able to provide a very positive impact on customers. Then, what is the marketing referral and how is it a powerful way to apply it? Find the answer by reading articles about Referral Marketing below.

Referral understanding is

As we already know together that there are many marketing strategies that we can use according to needs. But, most people claim that referral strategies are the best strategies.

Reported officially from the Shopify page, Referral is a marketing strategy that encourages customers to invite new customers. The invitation can be an account, buy, up to distribute content.

Research conducted by Nielsen shows that 92% of customers believe more with recommendations from people they already know.

In addition, someone’s chances of buying goods four times greater if recommended by acquaintances or friends. This happens because in general people are more trusted in their acquaintances than what the brand is said itself.

A brand will certainly deliver everything well related to products or services. However, people you know will be willingly provide information from the negative and also positive from the item.

For this reason, customer opinion is a very important thing in the marketing referral.

Oberlo’s official website even said that referrals are a powerful solution for companies, consumers, and prospective consumers. From one side, companies can get free marketing results from customers who recommend the product.

In addition, generally customers will get business or advantages by recommending products or services. On the other hand, prospective customers will benefit because they can get recommendations from the people they believe.

How Referral Marketing Works

1. Set a referral code

For business people, the main thing to do is to set a referral code. Most businesses will use a static code, which in all references will use the same code.

However, there are also those who set a unique referral code for each customer or customer. For those of you who want to give commissions or incentives to customers, it is better to use the second way. Because this method is easier to register referrals.

2. Ask customers to share code

After successfully setting the referral code, then then ask the customer to share the code. In shipping code, it’s a good idea to write the terms and conditions clearly.

3. Collection of promo code

Every businessman must collect and also record the code. This process can be obtained when a customer or customer enter the code at checkout or the company tracks the code from the link and also the approved cookie.

The most widely used customer referrals will get commissions or incentives. But to get it, the company has its own rules.

Some have required one use equal to one commission. But some there are also those who get an incentive with a minimum of five accounts that use the code to shop.

The types of referrals are

1. Two Way Referral Incentives

The first referral program both parties will get rewards, both from the customer’s side that provide recommendations and also those who receive recommendations. With this type of referral, customers will have a strong motivation to recommend their new customers.

2. One Way Incentives Referrer

This type of referral will only provide compensation for those who recommend it. For example, there are programs where a fitness member will succeed in getting a monthly fee for free if you succeed in recruiting new members to register members in the fitness spot.

The advantage, these customers will be more active in to invite new customers to join. However, in terms of new customers it cannot be felt.

3. One way incentives referred

This type of referral is the opposite of previous points, customers or consumers who will benefit. For example, new customers who register will get a monthly cost discount of 40% for the first month.

The advantage of One Way Incentives Referral is that consumers will feel happy if they are able to invite people around their environment. However, the shortcomings of each customer are not motivated to invite new customers, because there are no benefits that can be obtained.

4. No incentives.

This type of referral will not reward anything to customers. This type of referral will run successfully if the product or service you sell to consumers can really be able to make them very satisfied.

So, they will be happy to recommend it to the nearest person even though they don’t get any advantage.

Advantages of Marketing Referral

1. Clear target

In some aspects, this referral practice is actually almost the same as marketing influencers. For example, you will certainly choose influencers with the same audience as your target market. So, the message you will convey can be accepted by the audience appropriately.

This is also similar to marketing referrals, of course you hope that your customers recommend your products or services to their acquaintances. Because in general customers and their acquaintances have the same level of characteristic.

2. High level of trust

Today, generally people will believe more with what relatives or others are said to be by the brand themselves. The company may indeed be able to create advertisements in various media, such as billboards, banners, TV media, radio, or on social media.

But the impact will be smaller than recommendations from relatives of the prospective customers. In fact, actually marketing referrals do not only occur between consumers with their acquaintances. They can trust people who have not known, as in practices that occur in TripAdvisor reviews or e-commerce.

3. High Reach

Another advantage of the referral is having a high Tingka Reach. In the past, Reach owned by Referral Marketing was indeed low. Everyone only has a referral average in some people.

But, with the website, social media and e-commerce, Reach on the current marketing referral. Everyone can provide product recommendations or services to hundreds or thousands of people at once.


As we know that the search engine marketing strategy, influencer marketing, and even marketing events need considerable funds. But this is different from the marketing referral. Reporting from the Springboard page, the way referral work is like a virus.

If your brand is able to attract a day one customer, then they will be willing to give your product recommendations on their acquaintances. Then, the acquaintance will provide recommendations for your brand to other acquaintances. So, your brand can also be better known and selected based on the recommendation.

Tips for Referral Marketing

1. Give incentives

One of the very common things in referrals is incentives. The incentives themselves are reciprocity that you can give to customers who have recommended your brand. For example you can provide discounts, bonus points or vouchers for them.

Later, it will increase the spirit of customers to continue to provide your brand’s recommendations to their colleagues.

2. Publish a referral program

Referral is one of the marketing techniques that cannot just happen. You still have to do an effort so that customers want to recommend your brand to other customers. The way you can do is distribute referral programs on various brand platforms.

3. Make a simple program

Reporting from the Influencer Marketing Hub page, you must be able to create a simple referral program, both regulatory, system, up to publication.

For this reason, try to make your program easier to understand by customers. So, they no longer need to think hard to recommend your product or service.


Thus the explanation of us about understanding and how to run a marketing referral. So, referral is a marketing strategy that is able to encourage every customer to invite new customers. You can use this marketing strategy to increase your audience range.

In order for your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.