We know marketers are always being pushed to find new ways to drive revenue growth and generate sales opportunities for their companies. One strategy you might not have considered, but should, is a referral channel strategy for your business. Read on for five reasons why creating a referral channel strategy can be a great option.
Referral marketing breaks through the noise
In today’s world, there is a ton of marketing noise. As people are shopping for products and services they are bombarded by advertising and information. One very effective way to break through that noise is getting a warm introduction to a prospective buyer from a trusted advisor. How can you do this effectively and at scale? Through a referral channel.
Scale with little overhead
Don’t have the budget for big marketing campaigns? That’s ok. Referral partner programs are a low cost way to scale your company’s partner output without adding additional resources to manage partner relationships. By utilizing a referral strategy with your existing partner channel, you can take low performing partners and turn them into high performing referral partners with little to no cost. In addition, a referral partner can have fewer barriers to success resulting in more people joining your partner program.
Leverage the partners traditionally on the sidelines
As mentioned above, referral programs are a great way to leverage existing partners that don’t fit the traditional reseller mold. By turning these partners into referral partners (versus reseller partners) you can drive value from an otherwise inactive group within your partner program.
If you’re still on the fence about a referral channel strategy, consider this fact: referral leads from partners tend to convert at a very high rate of 31 percent lead-to-deal conversion versus an average lead.
Get demonstrable ROI
Finally, and perhaps most importantly, a referral program can directly produce revenue for your company. Not only that, with proper tracking and automation through the use of referral software you can easily demonstrate the return on investment (ROI) of your referral program efforts.