A New Way of Marketing Can Boost Customer Referrals

Word-of-mouth referrals are becoming social-media referrals and your advertising should change accordingly.
A New Way of Marketing Can Boost Customer Referrals

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Direct mail. Yellow Pages. Recognize these terms? Those methods of advertising a business and gaining customer referrals are all but dinosaurs in today’s media-savvy world.

Now social media outlets — Facebook, Twitter, Instagram, LinkedIn and more — are the go-to channels for creating, maintaining and expanding a brand. And that goes for all businesses, even those in waste management fields.

It may not seem a traditionally easy fit for septic tank pumpers and portable restroom providers to tout their services online. But with today’s younger consumers increasingly using these channels for everything, it’s a must. And there are some rules that must be followed to get the most out of social media — rules that the “old guard” may need to get used to.

A new way of thinking
“Social media is tough in our industry,” says Marvin Hyer Jr., business development/marketing manager for Johnny on the Spot, a portable restroom supplier in Old Bridge, New Jersey. “We are constantly trying to engage our customers or people that would potentially be interested in our service, but have had little success.”

As far as referrals go, Hyer says, “While people may love our service or a particular rental product we offer, they are often not passionate enough about it to share that with friends or followers. We have referral programs in place, but not on a social media level.”

The company does, however, use a “donation per like” promotion program. “We split it into six-month increments to allow for different organizations to be the beneficiary. For every ‘like’ we get during the specified time frame, we donate $1 to that charity.”  

But while that program may boost awareness (and “likes”) of the company online, how can businesses harness social media to translate into referrals?

Andrew Misura is marketing assistant at Johnny on the Spot; he makes sure the company is active on Facebook, Twitter, Instagram, Pinterest, YouTube and LinkedIn. “We aim to post content that users will find relevant rather than traditional advertising, whether it is pictures of our restrooms on a site, content from outside sources that is interesting … and informative posts on our blog.”

He admits, however, that converting “likes” and those who see the posts into referrals is difficult to gauge. “Conversions and sales are very hard to directly measure from social media as opposed to Pay Per Click (PPC) campaigns,” he says. “The analytics on social media networks measure clicks and impressions, so we are able to know, for example, how many users click the link to view a post on our blog.

“Our back-end analytics also tell us how many visitors came to our site from social media and via which networks. Increased traffic on our website can only help toward conversions, but the ability to directly track conversions from social media is still lacking from analytics tools.”

He has seen examples, however, of engagement with current clients that show brand loyalty and might lead to referrals. For example, a special events company they work with and are connected with online recently posted the interior of one of Johnny on the Spot’s luxury restroom trailers, praising it to their followers and prospective clients.

Building a brand
Few business owners would argue that building a brand is an essential goal; many, however, may not know how to go about doing that on social media — especially when owners are part of the “old guard.”

Members of the millennial generation just tend to understand the purpose and function of social media a little more easily. “They’re more tech savvy to begin with,” says Amanda Clark, owner of Grammar Chic, a South Carolina firm that builds and maintains social media marketing campaigns for companies large and small.

“Small businesses tend to get it wrong,” Clark adds. “They’re using social media as the traditional advertising; they talk too much about themselves.

“When you’re on social media and perusing Facebook, do you want to be following a company that’s always talking about themselves? There’s no engagement.”

She suggests companies use an 80-20 rule, with 80 percent of the online posts filled with information to entertain or engage the readers. Only 20 percent of the posts should be about what the company does or offers. Once a viewer/reader begins to follow content, Clark says, the hope is “that when they get to the position that they need a specific service, they think of you.”

Clark agrees with Misura when it comes to measuring success or referrals via social media. “Social media marketing is not a form of advertising where you are going to find an immediate return on investment (ROI),” she says. “It’s a marathon, not a sprint. You have to build your brand to see it pay off in time.”

That’s a tough concept for many corporate owners who are used to seeing and measuring results. “The ROI is very hard to track,” Clark says, “and that can be a major hurdle with some kind of clients.”

Tackling social media
Hyer admits to being slightly jaded when it comes to social media; that’s why Misura handles the in-house social media posting. And while some companies are successful with social media marketing in-house, Clark wants owners to think carefully about that decision.

A lot of small businesses, for example, think they can do it in-house and might give the job to an office manager. “It’s not the best use of their time, and if you don’t know what you’re doing, it can go bad really fast,” Clark says. Not everyone has a background in marketing or a grasp on what is quality content; they may not be effective or clever writers. That’s when outsourcing social media can make sense.

Social media marketing firms not only have the expertise, but they can also save companies time and money. One reason is because social media is immediate; readers expect up-to-the-minute updates as well as timely responses, something the companies may not be able to offer with in-house posters.

Ways to engage
The website Social Media Examiner (www.socialmediaexaminer.com) offers a few tips on things to consider when engaging with potential customers on social media.

  1. Identify the right social networks. It’s just like targeting any kind of advertising. Research your demographic and determine where they might be looking on social media. LinkedIn, for example, targets businesses, where Facebook might be more effective reaching out to individual customers. Test a few platforms to see what works best.
  2. Ask for social proof. Most consumers trust their friends and relatives, so any referrals coming from a trusted source are persuasive; they are social proof that your friends believe something is worth noting or referring.
  3. Offer incentives. Many companies might offer discounts or special incentives via social networks. But while incentives are great ideas — who doesn’t like a deal? — it’s possible to overdo it, says Clark. You don’t want to do too many incentives because they can lose value. “People want to anticipate something,” she says. “If it’s an everyday occurrence, there’s no value associated with the post.” According to Social Media Examiner, “If you deliver customer satisfaction, you end up with more happy customers who may also share their experience with their social network and refer even more customers to you.”
  4. Customize your message. Get creative; what you say counts, but so does how you say it. So don’t make it a boring advertising message about products and services.

Social media is here to stay; feel free to go ahead and recycle your old paper phone books. But before you do, consider what your company’s needs are in terms of social media, and make some plans for how to engage both potential customers and current ones. The latter are, after all, the key to successful customer referrals.

As Misura notes, “Posting relevant content early and often will help guide potential customers who are searching for the services we provide to our website and to conversions and sales.”



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