Suppose someone, or say you want some product/ service, what would you do first? Would you directly get it from the store, if you are buying it for the first time? Most likely, customers turn to friends and acquaintances for a recommendation, or they may even consider scrolling the customer reviews.
And that’s where referral comes in. It occurs when someone recommends a provider or a business to another person. Word-of-mouth can be instrumental in the growth of a business, irrespective of the industry or its size.
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Surefire tips to make your referral program way more effective
The major goals of referral programs are:
- Augment customer loyalty
- Build brand awareness
- Fuel a viral marketing/sales campaign
- Direct customer acquisition
Once these goals are clear, you can consider building a strong referral marketing or sales program to take your conversions through the roof. Here are some tips to see you through.
1. Know your customer:
Before you embark on acquiring new customers, you must ensure that you are targeting and enticing the right kind of customer. This is because aiming at profitable customers poses a higher possibility that you will drive more of the same kind. Once you have identified the target customer, make them your priority, as it will encourage referrals from your current satisfied and loyal customers.
2. User experience & design is crucial:
Keep things as simple as possible. If the sign-up process is too complex, it will only drive your potential customers away. Your program must be effortless to use and make it clear to them how it works and what they can expect from it.
3. Choose rewards wisely:
Offering cash rewards is something not all businesses can afford in return for referrals. To choose rewards, you may ask yourself, “what incentives encourage your customers to share your product? What motivates your customers?” Then, survey your inventory and see if there are any low-selling products that you can use as promotional giveaways.
4. Advertise your referral marketing/sales program:
An effective referral marketing program is easily discoverable for your best customers. Feature the information concerning your referral program at all the crucial touchpoints to your customers. Include details about your referral program on your website (footer), email communications, newsletters, blog, and so on.
5. Remarket your referral marketing/sales program:
So, your customer has signed up for your referral program? Great. However, the story doesn’t end here. You need to remind them and keep them engaged. Thus, make sure you send additional reminders to them periodically. Run promotions to propose further incentives and incremental rewards for referring products or add-ons.
6. Measure and fine-tune:
You will be offered metrics during the lifecycle of your effective referral marketing/sales program. These metrics concern themselves with its performance, which provides the opportunities to tweak specific elements of the system to enhance your conversion rates.
Top examples of companies who got it right
Here are the top three examples of companies to inspire you to focus on creating a solid referral marketing regime. Read on!
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Google:
The behemoth is one of the organizations that has executed a referral program that works to entice businesses to suggest G Suite to other businesses. Google focuses on G Suite programs in its customer referral programs which aim toward business experts. The referral program offers many benefits to the senders; for instance, they get money for bringing new users to employ the G Suite program from Google. The amount they receive is incumbent on the kind of business program they have via Google.
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Dropbox:
Dropbox is a popular file-sharing site that created a referral program that not only benefits the existing customers but also helps the company attract new ones. As per its referral program, subscribers gain more storage space in Dropbox by inviting friends, which has worked magic for it.
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Uber:
Uber, a ride-sharing service, has successfully incorporated a referral program into its application. Since users regularly use Uber, the company came up with a robust referral program to entice even more folks to consider their services. The referral marketing program of Uber shows how it is a win-win for both parties. It helps the company to attract new leads.
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When creating your digital marketing plan or sales strategy, you intend to procure new leads and conversions for the business to facilitate growth and gain more customers. A referral program helps you land more clients by using your existing ones, thus, extending your reach. Know that customer experience is of the utmost importance here, as you can’t expect an unsatisfied customer to recommend you to their friends and family. However, when implemented well, it promises incredible organic growth for the business. So, are you ready to explore its potential?
