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How To Get More Leads in Las Vegas by Encouraging Referrals
Any experienced Las Vegas lead generation agency considers referral marketing one of the most cost-effective strategies to grow your Las Vegas business. This article tells you more about this tried-and-tested marketing method.
Read on to get some answers to the following questions:
- What is referral marketing, and how does it work?
- Why is it ideal for Las Vegas businesses?
- What are the best strategies for beginners?
Learn the best referral marketing tips. Let’s go!
What Is Referral Marketing?
Referral marketing is a lead-generation strategy that leverages the power of recommendations. It comes in different forms:
- Word-of-mouth referrals such as online reviews, social media shoutouts, and posts.
- Influencer marketing.
- Referral programs, including coupon codes and loyalty incentives.
- Website or app widgets and tools to make it easy for customers to refer others.
- Automated referrals, which are types of software that can detect referral opportunities and request customers to share with relevant contacts.
Referral marketing has been around for decades and is still used by big brands to generate buzz and acquire new leads. For example, Starbucks was well-known for its My Idea campaign.
In 2011, Coca-Cola printed over 200 common names and invited its fans to buy these customized bottles for friends and family members with matching names. The multiple awarded campaign, which spread to 80+ countries, eventually increased soda consumption among young adults by 7%.
Why is it so effective despite newer and more innovative marketing techniques? Here are a few key reasons:
- Social proof. A personal recommendation carries far more weight than generic advertising. Multiple studies show that consumers are more likely to trust product reviews from friends and family.
- Higher conversion rates. The higher level of trust and credibility that referral marketing provides often leads to more converted customers.
- Low cost. It is one of the most affordable advertising forms. It might even cost you nothing when done right.
- Passive growth. Referrals happen organically with little ongoing effort. You put a program in place, get the ball rolling, and watch your leads grow.
Why Referral Marketing Works Well in Las Vegas
Neon City is unlike almost any other market. Its economy hugely depends on tourism, conventions, entertainment, and hospitality. Annually, over 40 million people come and go here.
For these reasons, referral marketing offers the following benefits to Las Vegas businesses:
- Referrals help drive brand awareness and steer visitors to your business before they arrive in Las Vegas. Your business will be top of mind when tourists look for activities and hometown friends recommend your restaurant, show, lounge, or tour.
- The city hosts over 20,000 conventions with millions of attendees each year. Referrals help you tap into all of the professional networking happening at conferences. Attendees often look for the best restaurants, shows, clubs, accommodations, and bars.
- The metro area population is over 2 million. It suggests huge potential for locals to spread the word about your business.
- Las Vegas is a “repeat” market, with frequent visitors every year. Referrals help drive repeat business from visitors who return multiple times a year.
- Reviews, ratings, and personal recommendations heavily influence purchasing decisions in the city. Referrals strengthen your brand reputation.
- It is tough to stand out amid intense competition. Referral marketing lets you rise above the noise with authenticity, which the target audiences crave.
Constructing Your Referral Strategy in Five Steps
So far, we have established referral marketing benefits, especially for generating Las Vegas leads. Now, how do you structure an effective referral program?
An experienced lead generation agency customizes a plan. It considers your target market, business goals, and budget. For example, it might use a schema markup showing star ratings if you are a restaurant. For a fitness business, the team might recommend giving away free classes to gym clients.
The beginner's steps often include the following:
1. Define Your Offer
Determine the concrete referral offer that you want to provide. These include discounts on future purchases, cash rewards, and gift cards. You can also give away free products or services or match a referral with a charity donation.
Choose an offer that aligns with your business model and target audience. Make sure that it provides a high enough value to motivate referrals without losing money for the business.
As a caveat, some offers might be unethical or prohibited, depending on the platform, referral type, or incentive option.
For example, Facebook discourages running competitions with prizes based on likes and shares. It also allows contests on Pages, Groups, and Events only. Google Ads has specific terms and conditions for gambling and betting copy.
Read the fine print before planning or launching any referral program to avoid legal trouble and damaging reputations.
2. Establish Program Rules
Outline the exact program rules and processes. Who is eligible to make referrals? Customers only? Anybody?
What qualifies as a “referral”? Is it booking, signup, or trials? What is the referral reward? When do you issue it? When and how can referrers redeem them? Do you want to impose caps, such as discount coupons, on up to three preferred customers?
Clearly spell out program policies to avoid confusion. Create a page for it and update the terms when necessary. Hire a lawyer to review these rules when possible.
3. Promote the Program
Once your offer and rules are set, actively promote the program across marketing channels.
Marketing Channel | Strategies |
---|---|
- Send dedicated email blasts to announce new referral programs and promotions to your customer base. | |
- Send dedicated email blasts to announce new referral programs and promotions to your customer base. - Include referral information and links in your regular promotional and newsletter emails. - Follow up with customers after purchases to reiterate referral opportunities. - Share referral promos in transactional emails, such as receipts and shipping confirmations. |
|
Website and blog | - Create a dedicated landing page explaining the referral program details, benefits, and instructions. - Prominently promote it on homepage banners, site headers, and footers. - Include links in relevant blog posts and throughout the site’s content. |
Social media | - Post about the referral program on all of your social channels. - Run special social media contests and campaigns to collect referrals. - Promote it on social media to raise awareness beyond just followers. |
Printed collateral | - Include referral program details on menus, pamphlets, brochures, and flyers. - Add signup instructions and QR codes to direct people. - Place table tents and posters in high-visibility areas. |
Direct outreach | - Inform customers by phone, email, or text message. - Equip sales staff to highlight the program during conversations. - Mail letters or postcards to select customer segments. |
4. Make Referring Easy
The program design is just half of the equation. The other is making the referral process as easy, engaging, and seamless as possible.
Here are some ideas to try:
- Provide referral cards or flyers with a space to write contact details. Include any promo codes and instructions.
- Create a short referral page on your website.
- Integrate referral prompts and options into your booking and customer relationship management systems.
- Produce digital assets, such as branded images for social media and email templates, that customers can forward.
- Gamify the experience by showing live referral counts and leaderboards. Create tiers and status levels.
- Automate referral follow-ups via text messages or messengers.
- Train the staff to prompt for referrals during conversations and interactions. Equip them to explain the benefits.
5. Monitor and Optimize
Closely track your referral program to know whether it is working. Some essential metrics to monitor include the following:
- Number of overall referrals received in a period.
- Number of qualified or successful referrals that converted to sales.
- Conversion rate of referrals versus non-referred customers.
- Top referring customers (by referral volume).
- Common channels referrals come from (email, social, word-of-mouth, etc.).
- Most popular and effective rewards or incentives.
Use this data to run A/B tests on the different program aspects. Try different incentive values, such as 10% off vs. 20% off. See its impact on referral volume. Look into incentive types. Do discounts work better than cash rewards or gifts? Experiment with incentive structures.
Refine your referral marketing strategy based on the gathered insights. Eliminate or modify ineffective elements.
Create a feedback loop to track referral patterns, experiment systematically, and implement improvements. Doing this ensures that your program remains competitive, engaging, and optimized for growth.
Summing Up
Referral marketing is an effective Las Vegas lead-generation strategy. The steady influx of visitors and convention-goers and the large local population provide fertile ground for referrals to drive growth.
However, executing a high-performing referral program requires specialized expertise. The process is complex, from designing appealing incentives to optimizing through testing.
It is prudent for most Las Vegas businesses to leverage a dedicated lead generation agency. The team knows how to architect creative, results-driven referral programs. Its full focus on innovating and enhancing the strategy often amplifies results.
Are you ready to acquire more cost-effective leads? Schedule a free consultation with Digital Authority Partners (DAP). Let us make your referral marketing plan a self-sustaining lead-generation engine.
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