Incentivizing Referrals

While word-of-mouth marketing can happen organically, you can also give it a nudge by incentivizing referrals.

An incentive is a reward that you offer to customers in exchange for referring new business to you. Incentives can take many forms, including:

• Discounts: Offer a discount on a future purchase for every new customer a customer refers.
• Cash: Offer a cash reward for every new customer a customer refers.
• Exclusive "swag": Send loyal customers branded merchandise that they can't get anywhere else.
• Access to premium features: Give customers who refer new business access to exclusive features or content.
• Double-sided incentives: Offer a reward to both the referrer and the new customer.

The key to a successful incentive program is to make it a win-win. The incentive should be valuable to the customer, but it should also be profitable for your business.

It's also important to be transparent about your incentive program. If people feel like they are being paid to promote your product, it can reduce the trust that is so essential for word-of-mouth marketing.