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Social Media and Post-Purchase Referrals

ryancote November 14, 2011

A part, but a severely overlooked one, of running a business is motivating your customers to brag about your products to their friends and connections. In the past, this task was accomplished only through word-of-mouth referrals. But with the help of social media, doing something like bragging about their purchases is as easy as a few clicks of the mouse.

Motivate Your Customers

Business owners can motivate their customers to post their recent purchases by offering them discounts. With just one post, a single sale can influence future sales with minimal effort on your part. In order for businesses to do this, they can include buttons on their websites that will allow users to share content posted to their friends in Twitter and Facebook. There are a number of blogging platforms which allow businesses to easily come up with their own social media buttons. Some of these platforms include Blogger and WordPress.

word of mouthLeveraging Social Media for Word of Mouth

At the same time, when you are using your website to sell products, schedule appointments or book rooms, then you should give your customers the ability to announce what they have just done through your website directly on their social networks through your website. By allowing your customers to do this your business benefits from free publicity and advertising.

Another situation wherein you can use social media to promote your business is by motivating your customers to “like” your deals online. You can launch various promotional deals which they can “like”. For instance, you can announce HD-TV discounts in time for the football season. When customers “like” these deals online, their activity is shared to all of their friends online informing every one of your current deals.

Be Where Your Customers Are

Why should business owners capitalize on social media? This is because experts are convinced that people have already begun sharing their lives through these social networking sites, primarily through Facebook. 40 to 50 percent of U.S. residents have Facebook accounts and each person has an average of 130 friends on the social networking site.

A number of companies have already cashed in on Facebook. In fact, whenever their customers purchase something from any of these company’s websites, they give their customers exclusive discounts which they must share to their Facebook and Twitter friends. When a friend makes use of this discount, the original customer gets rewarded with the discount as well. This system is called the post-purchase referral system. Some companies make use of coupons which has limited validity that customers can share to their online friends.

6 comments
Noel Addison
Noel Addison

Honestly, my business has nothing to do with selling products so I will just speak on behalf of the customers of online stores and e-commerce business. Customers are more likely to refer products or company that truly satisfied their needs and have good customer service. Therefore, the satisfaction of your current customers is the key to driving more customers to your website. My recent post 5 Things to Look for in a Web Dev Company

TracyAnn0312
TracyAnn0312

Hi I'm new to your site and I think social media has a big influence in purchasing and advertising our product today. No wonder that lots of business marketers attracts to social media today! My recent post שליחת SMS

Tim@sogeshirts
Tim@sogeshirts

I need to utilize some of the concepts in this post for my business. Offering discounts after the product is purchased via facebook or twitter is genius.

Aanchal
Aanchal

Really important points, you must plan how to build your strong relations with your potential customers so that you can get benefits even after their purchase. My recent post Goa Holiday

Aanchal
Aanchal

Social media is a powerful way to create your brand and then leverage people to buy your products or services, that's how marketers use social media but generally it takes time to show result but still a great place of exposure. My recent post Web Design India

Jeff Gross
Jeff Gross

Social media became crucial part of every online business in last few years. There are so many benefits from using social media in your business efforts: from communication with customers, bringing traffic to your site, getting links for increasing authority and much more. Ryan mentioned great number regarding Facebook users in this post, every blogger and online business owner should read this post.

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