Direct-selling businesses adopt several types of marketing strategies to market their products or services. Marketing through social selling, influencers, search engines, content, mobile, etc is already established marketing strategy. The direct selling customer referral program is one of the new marketing strategies. In this marketing strategy, the business provides incentives to its customers for referring its brand to the customer’s family, friends, or among their social circles. As a result of this marketing strategy, the business can transform the referred people into more quality customers.

Customer referral programs are a great way to get new customers and spread the word about your company. Referral programs also help to increase customer loyalty. In a customer referral program, the referrer is a trusted person who needs to establish a positive brand experience with the person who is referred. This type of marketing strategy is mainly perfect for direct sales of health and wellness companies because nowadays people are more concerned about their health and wellness. For this marketing strategy to be successful, the referrals need to be incentivized properly and also need to include proper guidelines that allow customers to feel confident in referring others.

For creating a successful referral program, you have to understand the interests of your direct-selling customers. Today, businesses have to deal with the diversity of their customers. Customers come from different backgrounds, regions, and age groups, and have different psychological attributes. These are the deciding factors of their purchase behavior. This also determines what they expect from the brand. Understanding your customer's interests is one of the most important things for a direct-selling business to do. The business can understand its customer's interests in various ways. One method for understanding their customers is by running a thorough analysis of them. Next is, segmenting them based on their interests. Then, provide exclusive promotions for each group of customers. Then, apply the A/B test to them by delivering and applying changes in the referral program.