HomeSoftware/BusinessReferral Code: The Right Strategy in Product Marketing

Referral Code: The Right Strategy in Product Marketing

The business owner often feels confused about the right marketing automation strategies that are effective to increase the product sales. This is because marketing is being a major factor in product sales successful. Without marketing, the product can’t be sold. Currently, various marketing strategies can be a reference for business owners in promoting their products. One of them is referral code. But, what is referral code that can be said to be one of the right strategies in product marketing? Check out this article!

referral code

What is Referral Code?

referral code
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Not a few business owners still do not understand how referral code can be the right marketing strategy. But before discussing this, you must know the definition first. Referral code is one of the product marketing strategies in the form of unique codes that involve numbers to alphanumeric codes. Furthermore, this unique code is given by the seller to the customers. Later on, customers as code holders will share the unique code they get to colleagues and family and get benefit from the seller.

This strategy is not only profitable for the customers, but also profitable for the seller. In this case, the seller from this strategy will be able to increase the product sales.

Also read: What is ERP and Why is it Important for Businesses?

Types of Referral Code

Referral code as one of the product marketing strategies has several types. Here is an explanation of each type:

One way incentives referrer

In this type, the code holder only will get the benefit. While for the code user will not get any benefits. An example of this type is when a digital marketing course holds a program for the existing member that invites new members will get a free one month of course fees. In this case, the existing member will get a benefit free one month of course fees, while the new member will not get any benefits.

One-way incentives referred

This type will provide benefits for the code users, but not for those who recommend the code. An example is when a cooking course holds a program that the new member will get a 60% discount on course fees.

Two-way incentives referral

This type will provide benefits for all parties, both for the people who offer the code and the users. Currently, this type is often found. 

No incentives

Unlike the other types, this type will not provide any benefits for both the code user or the person who recommends the code. The business company that will use this type must be able to make customers satisfied with their products.

How Referral Code Works?

Referral code in its use certainly has its working system. Make sure that a business company has given this code to the customers. By sharing the code to customers, a business company can increase their product sales transactions. As a business owner, it is important to think about the exchange methods of this code, whether by inputting on the website or conventional exchange by coming directly to the store.

If the business company has given the code to the customer, the next step is the customer will share it to the colleagues and their families. Not only that, customers can share this code through personal social media. Do not forget to provide information about what benefits will be obtained through the use of this code.

No less important, business owners must find the right way to receive and collect all transactions that occur on this referral code. A good transactions recording (accounting system) will make it easier for business owners.

Also read: 5 Ways POS System will Make Your Retail Business Runs Better

Advantages of Referral Code

The use of referral code for business companies is one of the strategies to increase product sales that will certainly provide various benefits. Through this code, a business company will get many new customers. The presence of new customers will make a business company get customer data such as demographics to the percentage of customer interest in buying products. This data can also be used as an evaluation so that the business company can develop better.

In addition, the presence of many new customers will increase the customer’s confidence in buying the products. Higher the level of customer confidence in a business company, of course will increase the sales of the business company.

Success Factors of Referral Code 

Some of these factors will be the success determinant of the referral code strategy. Here are the success factors of this marketing strategy:

Consistency

Consistency of the business company becomes one of the success keys in using this strategy. In other words, more consistently a business company holds a referral code program, the more new customers will buy the products.

Offer interesting benefit

The public will widely use the code if the benefits from using the referral code are interesting. Therefore, a business company must be able to determine what kind of benefits can attract the public’s attention to use the code.

Simple terms and conditions

Often people feel impractical in using them. One of these impracticalities is the many terms and conditions that must be followed to use the code. Therefore, a business company needs to simplify the referral code program to attract new customers to use them.

Conclusion

Referral code becomes one of the right marketing strategies to increase the products sales transactions of business companies. However, to make the code program attract the attention of many customers, a business company must pay attention to the several factors that determine the success of this program, ranging from consistency in holding this program to simplification of the terms and conditions of the referral code program. In addition, a business company needs to be able to accept and collect all transactions that occur from this code.

referral code

Speaking of accepting transactions for business companies, HashMicro provides convenience for business companies in receiving all transactions from customers using POS Systems with the best features. Through this POS System, a business company can accept and collect transactions on referral code easily. Contact us now to get the best deals and free demos.

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