People run towards referral business experts for guidance and training but ultimately fail in creating a network with referrals. This failure is due to some simple things that these companies overlooked during the creation and execution of referral programs. Is the referral program very complicated? Yes, creating a referral program is complicated, but the outcome and revenue generated by the process are worth the trouble.

We talked with a few referral business leaders and market toppers to learn about the top reasons why a business fails in its referral programs. Learning how one might fail is the first step towards success.

When referrals business become forgetful

According to a study conducted by a university, Texas Tech, 83% of consumers plan to refer the business to their social circle after a positive experience. Yet, only 29% act on the plan. Your business is not your customer’s prime priority, and they could easily overlook it. Have frequent follow up with your customers. Have after-sales services, be connected with email marketing, and by engaging with the customers, without becoming a nagging service provider.

Constant change

Some referral business process would take a few years to catch on. If you end up changing the name and the terms of the referral program, every six months, your customers might get confused or would prefer not to get mixed up in the complicated process.

Lengthy process

Some companies create a portal for reference, ask the customers to share a reference code, which the new customer should provide during purchase, and so on. Please keep it simple. Let it be a few clicks to refer your product to others or a simple reward system. You lose the interest of your customers if the process is too lengthy or complicated.

Almost unknown

Your program for referral becomes a success only when promoted. Keeping it within your walls wouldn’t provide the exact results that you wish. Start with social media and promote it with the benefit attached to it, Do you want your customers to make their friends play your online game or app? Give something in return for the customer. It could be anything from a free prop in the game or a discount on the purchase.

Forgetting non-contact employees

Why would I spend money on a referral business program for my employees who do not come in contact with my customers? Your chef might not come in contact with people who stay in your hotel. But, he might have friends who would love to stay in an upscale hotel or take part in an event. Make sure to include every employee in the referral program.

Some firms try out referral programs, and when they fail, they close the file and move on. It is not the right path for a successful business. Numerous service providers available in the market can build up referrals for your business. Or, you could create a strategic team to work on referrals, from within your firm. There are numerous options in the market to drive in traffic to your business. If you fail to make use of those options to find more customers, those customers might eventually become loyal ambassadors of your competitors, leaning out your customer base.

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