So You Rely On Referrals And Don’t Need Marketing? Think Again!

So You Rely On Referrals And Don’t Need Marketing? Think Again!

By: Kyle James - Posted in:

Referrals Are A Great Tradition

There’s no question about it: referrals are the best leads marketing has to offer! If you can successfully motivate clients to spread the word about your business by offering great service, your business will grow, and you will win. Millions of businesses worldwide were built on referral marketing. But how does traditional, word-of-mouth referral marketing stack up against online referral marketing?

A Changing Dynamic

Referral marketing is rooted interpersonal communication. When people enjoy a service, they are quick to spread the word to friends and family. Historically, this happens through casual conversations. However, our desire for the most immediate, convenient solution paves the way for savvy online marketers to encroach on “mom and pop” referral-only businesses. But why?

Demographics are changing. Baby Boomer small business owners, many of whom have stockpiled accounts over decades of business, are starting to retire. The face-to-face business style they championed is retiring as well.

Millennials and Generation Z’s grew up with the internet. In fact, according to the Wall Street Journal, more than 2/3rds of teens prefer digital communication versus in-person. Why is this relevant to your business? This foreshadows businesses increasing reliance on digital communication. 

Successful businesses do not adapt to, or ignore, trends; they see them coming well-advance and prepare. Because interpersonal communication is shifting online, your business should be too.

This means if your website was built in the early 2000’s, it’s time for an upgrade. Modern consumers and businesses will spot this hole in your game and be more likely to do business with a competitor that seems more in-tune with “the times”.

Social proof is necessary to generate referrals. This is proven by traditional referral marketing. With the ever-increasing emphasis on online review sites, social proof is shifting from “word-of-mouth” and “face-to-face” to online.

Innovative companies are harnessing online referral marketing to outpace traditional, “word-of-mouth” referral marketing. So how will you?

Online Referral Marketing Is The Future

Our world is quickly shifting towards convenience and speed over privacy. Clients expect solutions to be fast, reliable, and require little of their own time.

People type their questions and problems into Google and get a response within seconds. Amazon delivers packages the same day. We can buy nearly anything in two clicks. So picture this scenario:

A Tale Of Two Companies…

Jane signs up with ABC Insurance Company and she loves their service. ABC Insurance Company has been in business over 20 years, and does zero advertising online. They’ve been fortunate and ambitious enough to generate enough recurring accounts to grow their business incrementally by each of their clients spreading the word to friends and family.

Jane tells Martha about how great of a company ABC Insurance Company is. Martha tells Jane when she needs to renew her policy, she will give them a try.

Over the next couple of months as Jane searches for insurance online, she sees New Age XYZ Insurance offering the same price as ABC Insurance company. Their website is better, she can chat with an agent and receive a quote directly through New Age XYZ Insurance’s website, and they can begin her policy much faster.

Martha’s current insurance policy ends and it’s time for her to get new insurance. Not only has she consistently seen ads for New Age XYZ Insurance all over the internet, she also notices the following differences between the two companies.

  • New Age XYZ Insurance has tons of online reviews and she can finalize the process in about 30 minutes online and a quick phone call.
  • ABC Insurance Company has no ads online or social media. In fact, she’s only seen or heard about ABC Insurance Company from Jane. When she searches for “ABC Insurance” on Google to research the company, all she sees is an old, outdated website. It doesn’t work well on her mobile device so she would have to go back to a computer. Everything about the company seems outdated and there is nothing online to justify Jane’s referral.

Although Jane suggested that Martha try ABC Insurance company, Martha chooses New Age XYZ Insurance. Their on-boarding process is much easier, they have more reviews online, and similar prices.

Increase Online Referrals With WealthHunters! Here’s How:

We create referral based campaigns using Google Ads, Facebook Ads, and LinkedIn Ads. Our platform-specific campaigns help you increase referrals at twice the speed of traditional referral marketing.

  • Connect With People Seeking Your Services In Real Time.
  • Expedite Referral-Based Marketing On Multiple Advertising and Social Media Platforms
  • Increase Efficiency and Decrease Costs With “In-Market” Advertising

Contact Us Today To Start Your Two-Week Free Trial!

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