In the face of the advancements made in the technology along with the customer experience, the essential fact is that the more people speak about your product, the more popular your brand becomes. One of the straight marketing techniques is Referral Marketing. As the name speaks for itself, it points to the technique of promoting products or services to new patrons via a referral program with the help of existing customers.

Referral marketing is a tactic that makes use of the existing customers to spread out and at the same time strengthens loyalty among the existing customers.

Here are a few pitfalls to avoid while launching a Referral Program:

Not Planning for the Rollout

One of the major blunders that can be made with the referral program is focusing on the program in excess, and completely forgetting about planning its rollout. Though it is quite easy to design the terms and conditions of the program, it is the program marketing that takes a hell lot of efforts. If your rollout isn’t well-built, there is a higher probability of your program failure.

Lack of Coordination

Your business divisions must work together and in synchronization to ensure the success of the program. The sales and marketing team is rarely found working together. This can give rise to grave inconsistencies in the execution of the program.

Not Focusing on Customer Segmentation

When it is about the referrals, it is the quality that matters and not the quantity. It is better to have only some strong and consistent referrals instead of the doubtful ones. Preferring the latter will only fetch you weak customers and this will be a mere waste of time.

Offering Incentives of Little or No Value

Try to find out if you are you providing sufficient incentives to your customers to keep them motivated and get you referrals? Provide them with something that is valuable for them to help you get more referrals.

Thus, the Referral programs take considerable time to get into place, so you need to be patient. Your impatience can make the referral program ineffective and get you nothing. An amazing referral program is set up with a reason. It stimulates the customers and at the same time encourages them to articulate about your brand and the products and services you offer on your behalf.