Referral Marketing is all about guiding your current customer base to help your business identify and win more customers. Behind it is the obvious expectation that your current customers spend quality time interacting with their friends, network, and family, and if they’re happy & satisfied with a business, they are likely to share offers of the business. It might be an offer for a trial, on signup, or for a specific product or service. Whatever the offer is, referral marketing helps you leverage your current customer base to identify and win more customers.
Most of the time, you’ll offer an incentive to participate in the referral program to your current customers. This could be in the form of free months of their subscription, discount coupons, or gift cards.
If you aren’t already running a referral marketing campaign, it’s high time that you should. This is simply because referred customers are the easiest and fastest to convert. Moreover, the cost of acquiring these customers is the lowest in the market. Since a referral marketing program involves a lot of aspects, it makes sense to add automation so your team members can concentrate on their core activities while everything else runs seamlessly in the background. You can leverage referral marketing programs such as Referral Rock, Rocket Referrals, and GrowSurf to automate things.
Anatomy Of A Great Referral Program
The dissection of a great referral marketing program always has five core elements acting as the overall campaign’s building blocks. When things core elements are in the right place, the campaign runs smoothly and can be easily scaled with a business’s expectations and requirements. It also keeps the participants happy and engaged while leading to increased revenue. Win, win, win, win.
1. Referral incentives
It is a no-brainer that a majority of customers will always have the question “What’s in it for me?” Very few people out in this world refer customers to a business purely out of the goodness of their hearts. Most often than not, they are in it for the incentives and the rewards. You can leverage one-sided incentive programs (that rewards one party in the referral, generally those participating in the program) or two-sided incentive programs (that rewards the referring customers as well as the new customers).
2. Promotion channels
Choosing the right promotional channels is critical to the success of your business. Remember, some promotional channels will work very well for some businesses, but not equally good for others. Email marketing, social media, paid advertising – there are many channels to consider.
3. Tracking and analytics
In any referral marketing program, it’s important to have in-built tracking and analytics. Your business must have the capabilities and resources to accurately identify, evaluate, and adapt your referral marketing program based on trackable metrics and data. For this, it’s important to track different metrics and KPIs such as engagement, the number of participants, conversion rates, and so on.
Referral marketing programs can end up creating a lot of administrative and management initiatives. The list in creating and sending referral emails, fulfilling rewards, sending out referral codes/links, or managing tiers can be long and overwhelming. This is where automation can come to your rescue and help you scale your referral marketing program following growth.
Why you should launch your first referral campaign?