Asking your loyal customers to spread the love for your small business can be a great way to increase profits and gain more customers. Referral programs are powerful word-of-mouth marketing tools that can help you reach more people and increase your profits. According to some estimates, referral marketing can increase profits by 16%. Plus, 92% of customers ask people they know for recommendations before they buy.
You can also apply this tiered rewards approach to discounts. For example, you could offer 20% off for the first five referrals a customer sends, and then 40% off for each subsequent referral. If you want to develop a B2B referral program, there are several ways to do so. You could start by offering incentives, such as discounts, to customers who recommend you to their colleagues.
Or, you could offer a loyalty program in which customers receive reward points for referring other customers. Take Sprout's partnership program as an example. They offer discounts and rewards for customers who refer their friends and family to their services.
