About commercial partnership
Since the beginning reference has been a fundamental key factor for any business to sustain itself in the market or to grow in the market. There is evidence which in UAE for the rise of commercial partnership and seen significant growth in business with the help of referral partnership. When procuring a service, individuals give more prominent significance to the recommendations and are rarely guided by customary promoting efforts. In referral program, the main advantage is a company can acquire serious customers who are willing to proceed further and close the deal.
In below line, we will discuss key advantages and the ways to improve the referral growth and shows some numbers which help business to grow and build a safety net for business.
Importance of B2B & B2C referral program
It’s commonly known that the clients feel more confident when they are referred by a trusted agent. B2B Referral Programs make it simpler for a business for example : efficient sharing procedure, makes referrals simple to track, and rewards for the referral partner. According to a research, 69% of businesses with referral programs report that their leads are taking lesser time to close as compared to other leads. B2B decision-makers are also turning to people they trust when they need to decide which is the most relevant company for their needs. When a consultant recommends a product, the client listens. In this Era where everything is just a click away people still believe and rely on word-of-mouth, Word of mouth influences a lot on purchasers’ buying decisions. All these are the key evidence towards the rise in referral programs in Dubai, as sales leaders, marketers and even sales personnel have begun to believe that the key to sales success is referrals.
Cost effective marketing
Marketing is one of the most important factor in order to acquire new customers, companies uses all sorts of marketing techniques which requires the company to set aside a good portion of budget in order to have an edge over their competitors. Comparatively Referrals Programs are much more budget-friendly and effective in order to attract customers. Some of the key benefits are listed below:
- Referral attracts genuine customers who are more likely to make use of our services, which allows businesses to see a longer period of revenue increase. Statistically, agencies with referral programs have seen 86% greater revenue increase during the last two years.
- Every firm’s aims to build an active client/lead base. A common hassle that every firm run into is figuring out how to deliver down their customer acquisition cost (CAC). Referral advertising has a decrease CAC because it uses potential clients who facilitates into referring greater clients, this allows in acquiring of quality leads/clients. Also referral Program advantage is that the cost is fixed and predictable.
Reward increases referral likelihood
As referral reward programs rewards commercial partners, this helps build the customer base, firms use rewards to encourage other business to make recommendations to the business. The referral rewards are particularly playing more effective role in increase of referral business. There are several ways through which a referral partner can receive rewards. For example the referral partner can directly give a lead and receive reward or referral partner can take top up their rewards. Importantly disbursement of referral rewards on timely manners will increase the trust with partners and significant growth in business.
Clients are willing to refer after a positive experience
When a client has received an experience more than his expectation then he naturally starts sharing his experiences to others. This in turns benefits to the firm. As mentioned by “Mr. Fred Reichheld” that the value of any customer does not reside only in what the person buys but it also resides on what they are prepared to tell others about the company that can influence the revenue and profits just as much.
This blog is written by Ms. Noorain (Business Advisor) at Flyingcolour Business Setup, Accounting & VAT Services in Dubai and across UAE. Feel free to call or contact us for a quality consultation. Please send inquiry to info[at]flyingcolour[dot]com or or call +971 4 4542366.