For the past few decades, many business professionals and entrepreneurs have realized the importance of networking and referrals.
According to one survey – “people are four times more likely to buy from a business when referred by a friend or an acquaintance.” Consumers use word-of-mouth communication to spread awareness of their favorite brands via social media, email, natural conversation, and other marketing channels.
All kinds of business organizations can utilize the tremendous power of referral marketing. Many brands are already enjoying the good results of it by implementing referral programs. However, it has been researched that a lot depends on business nature in getting quick and significant referrals.
Let’s discuss the 25 types of Businesses that benefit most from referrals.
1 – Hospital-
Hospital and Healthcare industry is booming and will continue to flourish. They offer health-related services like medical tests, treatments for illness, and provide a stay in hospitals to cure complicated physical issues. For a planned medical check-up and health-related treatments, people often ask for friends and acquaintances’ suggestions.
Depending on their feedback, they decide which hospital or clinic to visit. Thus, if you are in a hospital and healthcare business, most of your leads will come through referral programs.
2 – Travel and Tourism-
Travel and Tourism purely belong to the service industry and mostly run by referral programs. People avail the service to organize a tour, and the tourism company generally provides a package to the holiday goers or maybe for a business trip.
People associated with this type of business get enough referrals from their existing and loyal clients. This industry is susceptible. If anyone maintains the standard and implements a referral program virtually, it can bring great success.
3 – Garment Business-
Garments are meant for fashion, comfort, and necessity. Three critical factors are related to it, and people make a buying decision based on these factors. Brands offering custom-made and ready-made garments make special efforts on referral programs and experience good returns.
4 – Academic and Education-
The educational industry has always been in demand. It can be a school, college, university, private tuition center, vocational institution, etc. Whosoever is offering quality education and training will get the most referrals.
It is the type of business that hardly needs to promote itself once the brand is established. The business goal can be attained and take up to great heights with the referral program’s help.
5 – Event Management –
Companies conduct events like award functions, parties, concerts, etc. They get business calls primarily from referrals. Events are generally sophisticated and hold great importance.
That is why no one wants to take any risk and try a new or unknown company. Thus, for an event management company, most of the business comes through the referral marketing program.
6 – Restaurant-
The restaurant business runs mostly on the quality and goodwill. Offering good food and service can bring popularity within a short period. When people plan to dine out with family or friends, they ask for feedback from their known circle and check whether anyone has been to the particular venue earlier.
Based on their responses as well as reviews from various online portals, they finalize the event. Being in a restaurant business, you can get enough customers referrals by offering worthy rewards and implementing an effective referral program.
7 – Parlor and Grooming Center-
Parlors and grooming businesses belong to the beauty and wellness industry. It caters to hairstyling, beauty treatments, spas, gyms, and other body grooming activities. This type of business receives referrals from their happy customers, and most of their revenue generates via a well-planned referral program.
8 – Private Medical Practice-
People tend to visit a Doctor or a private medical practitioner who has already treated their friends or family members. Before going for medical counseling, they check the doctor’s record and goodwill. Organizations dealing with a set of medical practitioners will get great referrals from their registered patients rather than new patients visiting them.
9 – Electronic Product-
A business that deals with electronic products’ manufacturing generate enough revenue through the customer referral program. Electronic items like mobile phones, televisions, laptops, etc. acquire enough business leads through word-of-mouth marketing. People often share feedback after using the product, which influences their friends’ or acquaintances’ buying decisions, those who have similar needs.
10 – Consultancy Business –
Organizations are such entities where everyone needs to visit at some point in their lives. This type of business can be of different forms – tax consultancy firm, legal consultancy firm, financial consultancy firm, HR consultancy firm, etc.
Since most of their services are sensitive in nature and the reliability factor plays an important role, loyal clients refer their friends and acquaintances to avail of the service with trust and assurance.
11 – Advertising Agency-
If you are in the advertising business, you can be easily benefitted from referral programs. Advertising agencies deal in promoting and branding the products/services for other companies or individual clients.
Whatever they are doing, the quality of work is visible. Thus, a client who is getting good results will undoubtedly refer the brand to others, those who have similar needs, so that they can also avail of the service.
12 – Software Service Provider-
With the advent of the latest technologies and useful discoveries, many companies are planning to automate their business workflow with software. They are interested in streamlining the activities systematically without any hassles.
And for that, they are taking help from IT companies to set things in order with software. To stay at par with the competition, others also follow the same path if anyone implements software.
13 – Automobile-
People do a lot of research before buying a car or vehicle. First, they will ask for expert advice from their peer groups, who already own a car. Friends and acquaintances generally advise the same brand they use and suggest some other brands on rare occasions. In this way, referral programs benefit the automobile business, to a great extent.
14 – eCommerce-
ECommerce portals and Online-Shopping sites invest a lot in referral programs since most of their business comes from client referrals. They come up with something new every time and offer worthy rewards to their customers to get enough referrals. And they also succeed in their endeavor.
15 – Real Estate-
Clients who are looking for property take ideas from real estate agents. The agents refer to the most suitable real estate company that can suffice the clients’ needs. The referral program is in the heart of this business.
16 – Hotel-
People generally do not want to compromise with comforts when they are paying for it. Hotels are meant for a pleasant stay during holidays and business trips.
So, before staying in a hotel, people read reviews on online portals and gather necessary feedback from friends and acquaintances.
Since hotel businesses are most benefitted from referrals, they also spend more on implementing referral marketing strategies to generate enough leads and also reward their loyal customers.
17 – Appliances-
Appliances are of various types – Purifier, Iron, Refrigerator, Microwave-Oven, Air-Conditioner, etc. Referrals mainly determine the market demand for such items.
If you are into this type of business, you will get many referrals from the customers who are satisfied using your product. A successful referral program can further enhance the process of bringing good results.
18 – Fashion and Interior Designing-
Organizations that work in the designing segment receive new leads through referrals. Though every individual’s preference varies, an eye for art and craft connects well with good taste.
Fashion designing, Painting, Handicraft, and Interior designing houses build a strong network with their customers and continuously promote referral programs.
19 – Movie and Entertainment-
When do you think a movie becomes a big hit? Before the release of every movie, producers and distributors promote the films to an optimum extent to create enough buzz in the market.
Despite taking the necessary steps, some movies fail at the box-office, and others get the desired success. The parameters responsible for it are – referral programs, word-of-mouth communication, referring via online marketing channels.
20 – Furniture-
Furniture manufacturing companies also engage in the referral program to drive customer growth and increase revenue. Furniture can be of many types – table, chair, wardrobe, beds, sofas, etc.
These are generally placed in office and at home, and the demands are also overwhelming. For requirements like custom-made items and ready-made stuff, referral programs can turn out to be most effective.
21 – Organic Food-
Packaged food products are in high demand in today’s busy world. People often ask for feedback from various sources regarding a newly launched product. The feedbacks further help them to decide whether to buy. Hence, brands offering packaged food products earn good revenue from referral marketing and referral programs.
22 – Beauty Product-
Cream, soaps, conditioner, aftershave, and other items fall under beauty products. This type of business benefits a great deal from referral programs. Brands who have got such products to focus a lot on customer referrals.
23 – Packers and Movers-
Quality service remains on top for the packers and movers business. These companies help in transferring and relocating household stuff and other items. Since this business belongs to the service industry, most of their leads come from referral programs, and they seem to enjoy good benefits from it.
24 – Medicine and Pharmaceutical-
Brands offering medicines for different health-related issues draw enough customer referrals. When people get good results after taking such medication, they share it with their friends and relatives.
25 – Gifts-
Retail outlets and online portals sell gift items, get new leads, and customers mostly from referral programs. Some brands have come up with superb services where they deliver gifts to any destination.
There are several online gift shops from where people order gifts for their near and dear ones. This business has come to the limelight by offering better service and good quality and earning good customer referrals.
Though the business, as mentioned above, houses benefit most from referral programs. That is how referral marketing strategy is applicable to any business organization. It creates wonders in getting new leads and increase sales.
For a complete referral process re-engineering and a new implementation of a referral program, NextBee is always at your service. It offers essential and innovative features, such as – branded refer-a-friend and social sharing widgets, giving referral rewards tied to sales and subscriptions, and providing support for overlays, emails, microsites, etc.
To get more insights and ideal solutions about your business, need a contact at 1-800-547-1618.