In the competitive energy industry, a referral is among the best marketing available.
It’s one of the most cost-effective ways to earn a new customer, and it’s often one of the most successful.
A recommendation from a trusted source, whether a friend, relative, or business partner, comes with an added layer of credibility. Your prospects are looking for an energy business they can trust, and a positive referral presents your company as just that.
Let’s explore how a referral marketing program can transform your current customer base into an extension of your sales team.
What Is Referral Marketing?
Leveraging the persuasive, trustworthy nature of positive word-of-mouth, referral marketing inspires your existing customers to recommend your business to friends, relatives, coworkers, etc.
Through meaningful incentives, including personalized discounts, promo codes, and mutually beneficial offers for both the referral and referrer, a referral marketing program builds upon customer satisfaction to earn new, already qualified leads.
In other words, you’re able to trade a simple one-time offer for a vetted, high-value account.
In fact, referrals come with a 3-5x higher conversion rate than other, traditionally sourced prospects.
And, not only does referral marketing offer the opportunity to earn more customers at a lower investment, but it also allows you to access new audiences that your current marketing initiatives aren’t reaching. The right referral outside of your current audience could lead to one of your most profitable accounts.
From its high-value lead generation to its extended reach and access to new markets, a referral marketing program skips the traditional sales funnel and helps you identify and capture customers already prepared to convert.
