Integrating referral tracking software into your website design process is an awesome way to create a functional website design that naturally increases traffic and gives you effective sales leads. A referral tracking system incentivizes others to recommend your product by offering a commission if a sale is made with their link. If this sounds far-fetched to you, we’ve created a list of six reasons why referral tracking software is worth its weight in gold:
- Referral tracking software stretches your marketing budget further than a well-worn pair of jeggings.
If you spent your marketing budget on a giant billboard, that money is gone forever, whether you generate one penny in sales from it or not.Even extremely effective forms of marketing, such as pay-per-click advertisement, doesn’t give you the return on investment that referral marketing does. When you pay for pay-per-click advertising, you only have to pay for viewers who actually follow the link and visit your site. However, pay-per-click ads typically only convert to a sale about 11.45% of the time. If you crunch the numbers, that’s about 88.55% of money spent on pay-per-click advertisement floating off into the abyss. Unlike any form of advertisement throughout the history of mankind, referral marketing gives you a 100% conversion rate for the money you spend on it.
- Everyone wins with referral marketing.
When a consumer is looking for a product or service, 88% of the time they read online reviews before selecting a business to give their money to. Referral tracking software encourages online reviews, which helps consumers make buying decisions. Your affiliates who refer a consumer to your website benefit from giving your business a good review because they receive commission if it leads to a sale. You obviously benefit from referral tracking software, as it drives purchase-ready clientele to your website, and only costs you money when you make money. This is what we call a win-win-win.
- Referral marketing simultaneously helps with search engine optimization.
Every time an affiliate posts a link to your website on their website, you score the brownie points that search engines like. The more offsite referrals (or backlinks) to your website, the more likely Google is going to put your website at the top of their search results. And you definitely want Google to put your website at the top of their results, as studies show that search engines are the single greatest driver of traffic to a website.Search engine optimization is a great marketing technique on its own. But using referral marketing serves its purpose, and improves your search engine ranking at the same time. Two birds, one stone my friend.
- Referral tracking software gives you quality clientele.
As they say, “The best form of marketing is word-of-mouth.” The kind of clients who come to you after reading a positive referral about your business are the kind of clients who start their business relationship on the right foot. In fact, according to the Journal of Marketing, a customer who you acquire through a referral typically spends 16% more over the lifetime of your business relationship than any other client.
- Referral management software gives you valuable marketing information.
Referral marketing gives you the reporting information you need to improve your marketing plan. Even the website referrals that don’t result in a sale are valuable to you, as most referral tracking software can use it to tell you information like the click through rate, how many views your website gets from which affiliate website, and which affiliate marketing tools are most effective (such as links vs banner ads). This kind of information helps you understand what is working and what is not.
- Referral marketing improves your brand recognition.
Even when an affiliate referral doesn’t lead to a sale, or even a site visit, it expands the opportunity for potential clients to become familiar with your brand. The more your brand pops up in their peripheral vision, the more likely they will recognize you when they are looking for your product or service.
Do you have questions about implementing referral tracking software in your web development? Please feel free to contact us, we’d love to help you out.