Do you think referrals are really the most effective way to get new customers? Please take this free survey to help ReferNow gather information about the way referrals are used in businesses. The results of the survey will be published in a few weeks. In the meantime, 5 random survey takers will receive a free 1-year membership at ReferNow.com. Not bad!
One of the fundamental rules of business is the 80/20 principle which tells us 80% of a company's sales come from 20% of its customers. That 20% makes up the most valuable segment of a company's customer base. In addition, it's less expensive to build brand loyalty and retain existing customers than it is to find new customers. Therefore, a program like the one offered through ReferNow.com provides an excellent opportunity for businesses to not only build brand loyalty by rewarding existing customers but also to help businesses capitalize on that loyalty by attracting similar customers through personal referrals. 
How does ReferNow provide all this to businesses? In their own words, "ReferNow is a web-based customer reward program, designed to motivate and reward a business's customers for referring friends and colleagues to the business." ReferNow reports that a recent survey indicated more than half of internet users had visited websites referred by friends or family members in the previous 30 days making referral marketing one of the most powerful forms of lead generation. It can also be one of the least costly thanks to ReferNow's business program.
Let's break down the ReferNow program and see exactly what the value is that it can bring to business owners.
The ReferNow Program for Business Owners
How does the program work? You can create a customized online program that will reward customers for referring friends and colleagues to your business. You customize the program and the ReferNow system manages it for you. A simple site set-up wizard walks the business owner through site set-up, which typically takes about 30 minutes. Next, you simply tell your customers about the program and invite them to visit your reward site. When they refer customers, they earn rewards (tailored for your program per your requirements), and you earn more business. It's a win-win situation that not only rewards your best customers, but also boosts your profits. Imagine a direct mail campaign to your customers that tells them you want to thank them for their business and invites them to visit your referral site where they can earn valuable rewards simply by telling friends about your business. I can see ReferNow becoming very popular, and I can understand why the program works.
What types of reward campaigns are available? ReferNow offers several different reward campaigns. You can choose a program that features a special coupon offer to drive sales. You can market the program by telling your customers you'll thank them with gift cards, free products, discounts or cash if they share the special coupon offer with friends. As an alternative, you could choose a click-to-site campaign to build traffic to your website. Your customers can send a message to friends about your website along with a link to your site. When friends click the link, your customers earn reward points. As a third option, you could select a click-to-form campaign to generate qualified leads providing extra details to help you convert those leads to sales. Your customers will be rewarded for having friends complete your customized web form with information you request. The programs are simple to develop and easy to track, because ReferNow does all the tracking for you.
What businesses can benefit from ReferNow?
A ReferNow referral program is one of the most unique ways to build word-of-mouth advertising and thank existing customers (thereby building brand loyalty) at the same time. Business owners from a wide variety of industries have contributed positive testimonials to the ReferNow website from clothing stores and computer businesses to landscapers and massage therapists. Even hair salons and investment businesses have benefited from the ReferNow program.
Ultimately, I think ReferNow has created a unique service that provides a great marketing tool to business owners, particularly owners of small businesses who have neither the expertise nor the budget to develop and maintain a wide-scale referral and loyalty program. Right now, ReferNow is offering their program for free for 30 days, so if you've been thinking about creating a referral and/or loyalty program to grow your business, now is a great time to try ReferNow.
If you think the ReferNow service is interesting, you might want to participate in a survey ReferNow is hosting to help further develop their services. The survey will help ReferNow learn more about how business owners use referrals to build their businesses, so if you'd like to get your opinion heard, stop by and take the survey!
What kind of referral programs do you use? What do you think about the services provided by ReferNow?
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