Are you looking for a way to make a referral program successful? Research is the first step in any good marketing strategy. It’s likely that you have already studied other successful referral marketing, which is a great way to get some inspiration for your own program.
In this post, we’ll cover 5 refer-a-friend best practices for creating, operating, and promoting referral programs.
Also Read: Why Should Be Business On Instagram?
How effective are Referral programs? Know details
Referral programs can be effective both for acquiring new customers and for retaining existing ones. Numerous statistics support the effectiveness of customer referral programs. The following are a few popular ones:
- People feel most comfortable making recommendations from people they know than from anyone else.
- Referrals from friends increase the likelihood of someone buying something from a business by 4 times.
- A referral program contributes to customer retention as well: it brings in loyal customers who stay with a company for a longer period of time.
- Compared to other customers, referred customers are 18% more likely to stay.
Doesn’t that sound nice? It’s not hard to run a successful referral program, despite the many moving parts. The following are some best practices for referring friends.
5 best practices for referral programs for beginners
What are the steps to a successful referral program? What is the best way to create a strong referral program? Referral programs can be successful if business owners or marketers follow a few guidelines. To help you create a referral program that works for you, here are the top ten best practices to follow:
1.) Know your customers
We’re dealing with something significant here. Your program will be more effective if you know who your existing customers are. You might even be able to exceed their expectations. A more personalized program can also be achieved by getting to know your customers.
Job Referral programs can be started with insights from your existing customers – after all, they may refer others with similar needs. Your customers will know that you care about them if you develop a program that features messages and rewards for them.
2.) Offer referral incentives
Referral Marketing can be successful if they offer incentives, or rewards, that your customers will love. Reward your customers for referring another person to your business with something that is worth the time and effort they have spent referring you. Ideally, it should also be something related to your business, like store credit, an account upgrade, or free products.
Rewarding your customers appropriately will show them you appreciate their efforts. In addition, it motivates people to work harder when they are able to see that their efforts are appreciated.
You should spend some time thinking about which kind of incentive will work best. Make sure your referral marketing rewards are something customers really want in order to attract customers to join.
Based on how often you sell to your customers, you may find the table below helpful.
|About your product||The product is costly and purchased infrequently||Service or subscription-based||The product is low cost and purchased frequently|
|Description||A big-ticket item is a car, mattress, or large kitchen appliance||Recurring purchases (such as streaming services and software tools)||Buying repeatable items (such as food items, restaurants, clothes) may vary.|
|Consider these rewards||Cash, swag, gift cards, donations (rewards not tied to future purchases)||Store credit, points, the free month, upgrade, swag, donations||Store credit, discount, gift cards, swag, donations|
3.) Consider who to invite
Choosing the right participants for your referral program is key to its success, especially if you’re just getting started. So, who should be included in your referral program? Consider these people:
- Current clients
- Offering personalized invitations to your most loyal customers would be a great way to get them involved.
- Customer loyalty can be distinguished by how much they have purchased from you, how long they have been your customers, how many positive reviews they have left, how many surveys they have taken, or even how many people they have recommended to you.
- Past customer
- Followers on social media
- Email subscribers
- Employee advocates
4.) Check for places to promote your program
It’s likely that your program won’t be easily found, so participation will be minimal. Your referral program should be promoted where people (especially those you want to participate) can find it.
Don’t expect your referral program to all of a sudden take off when you simply promote it once. Choose platforms where you can post about your refer-a-friend program and those customers and potential participants frequent.
Next, promote, promote, promote with all your resources. Promote your company on social media, through email, newsletters, blogs, pages on your website, or even by calling.
Try these promotional ideas:
- Use emails
- Post on various social media platforms
- Add a link to the referral program in your social media profiles
- Make the program visible on your website
- Try retargeting ads
- Use pop-ups on your websites
- Lead in with surveys.
5.) Make use of referral emails
Referral marketing emails include a few key messages. Generally, these emails are either sent to referred customers (the referrer) or potential customers (the friend who was referred).
6.) Emails to existing clients
Referral programs are usually started by sending emails to existing customers after certain events have occurred (e.g. after purchase, shipment). Send out this email as your first invitation to get referrals.
7.) Make sure your user referral emails are successful by following these five steps.
- Make sure you use a clear subject line that gets the reader’s attention
- You can include the details on the landing page or FAQ section of your referral program in the email (keep it simple)
- Make sure your CTA is doing its job – encouraging your subscribers to learn more or share your email.
- Give customers a reason to join by describing the major benefits
- Don’t forget to catch them at a time when they are happy.
Apart from the points mentioned above, you must take care of the things mentioned below for having a successful referral program
- Act quickly to engage customers
- Make sharing easy and ask others to share
- Don’t be shy to take a follow-up
- Keep an eye on what your competitors are doing
- Use customer software program referral
8.) Key takeaways
A strong marketing strategy cannot be succeeded without the power of word-of-mouth. It is likely that your customers are already speaking highly of you if you manufacture an excellent product, deliver stellar service, and offer awesome support. Referral programs give you an easy way to generate new customers through word of mouth.
You should consider the rewards, the customers, and your promotion methods. If you want to design an outstanding referral marketing, you should consider these factors. While it’s obvious that the rest of your program design matters, these three points will determine how well you do.
You will set up your referral program for success by following these best practices since they will make it easy for people to refer you. Encourage your customers to refer their friends by rewarding them, marketing your program, as well as making it easy for them to do so.
Word-of-mouth marketing will become easier with referral software, as it will help you promote, reward, and track your referrals.
About the Author:-
Sheetal Goyal is a Sr. content writer working with USA-based firm Tutree Inc. She is an expert in writing content for B2B, B2C Clients. She brings her years of experience to her current role where she is dedicated to educating and inspiring the world on how to become better storyteller and blogger.