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6 Steps to Create a Referral Program to Increase Cash Flow

A referral program is a growth marketing tactic that allows businesses to apply a relatively hands-off approach to increase revenue. This program helps bring in leads, thus increasing your customer base. This article is about how you can create a referral program. Also, it tells you about a reputable provider of business funding in the U.S.

Referral Program

One of the growth marketing strategies, a referral program, allows you to encourage your existing customers so they’ll recommend your brand to their family and friends. This marketing tactic is also referred to as “word-of-mouth” marketing as it uses word of mouth to expand your business. 

The increased word of mouth can help you boost your brand awareness and reputation, and lead to a higher return on investment (ROI). Thanks to a well-designed referral program, you can increase your customer base, obtain better leads, and effectively promote your business without using too much budget.

In case you need access to additional working capital, consider working with a respected business funding provider like First American Merchant. FAM is rated A+ by the BBB for offering the latest merchant financing services with some of the cheapest rates in the industry. FAM is also a merchant processor providing the most advanced and safest payment processing solutions in the field. 

No matter, you need to create a referral program or you’ve chosen another strategy for growth, First American Merchant can help you take your business to the next level with ease. 

How to Create a Referral Program

Let’s see how you can build a referral program for your brand:

1. Communicate With Your Customers 

Communication is key. Take the time to communicate with your customers, thus putting your customers first. 

2. Offer Incentives 

Make sure to offer both your customers and their referrals an incentive. You need to encourage your customers to evaluate your business, otherwise, they won’t talk about your brand. 

3. Attract Customers Through Catchy Headlines 

Grab your customers’ attention by using provoking headlines. For example, consider using a headline like “Give $50, Get $50.” 

4. Keep the Process Simple 

Avoid making the referral process complicated. If customers have difficulty sharing your business, they’ll quit. So, make the process quick and easy. 

5. Create Clear and Direct Messaging

Make sure your message is clear and direct. Avoid using complex or confusing wording. 

6. Thank Your Customers

After your customer have used your referral program and received their reward, don’t stop there. Send a thank-you note to your customers to keep the relationship alive. 

Create a Referral Program to Increase Revenue

Referral programs are a growth marketing strategy. With an effective and optimized referral program, you can attract the right customers to your brand. If you need access to business funding, turn to a respectful alternative online lender for quick access to the necessary funds.