A customer referral program can be a top selling tactic for any businesses. You reward your best customers, attract like-minded customers and leverage social proof and the power of reviews all in one program!
Creating a high converting referral program to grow your startup business is that is actually quite easy. You only need to determine a few things to build a referral program.
First you want to determine what type of referral program you want to offer. Most are “Refer a Friend” referrals. With this type of program, when a customer refers a friend, they receive a discount or free product or service. There’s also referral rewards. With this type of program, customers can earn points by referring other customers. Reward points can add up to free boxes, special offers or prizes.
Then you will wan to determine the incentive for your referral program. The most successful referral programs have some type of incentive. You have plenty of options for incentives. You may want to offer discounted or free products or services. For example, Dropbox offers more storage space for those who refer a friend or the subscription box StitchFix offers $25 toward your next Fix when a friend order their first Fix. You can also points that add up to free gifts or cash back on purchases.
Don’t forget to consider if you want to offer a discount or points for the referred customer too! Many customers enjoy sharing referrals when it’s a win-win for both the referrer and the person being referred.
The most important thing is not to make your rewards too complicated. If you want to do offer reward points for prizes, then use a simple point systems and be clear about their rewards. For example, while Sephora often switches up their reward prizes but they are clear that their reward points never expire and their point system remains consistent. The best advice is whatever you offer, keep it simple!
Then you’ll want to set up your tracking so that your customers can track their rewards. Luckily there are tools for this! We shared our favorite referral program tools in this article.
Finally, you will need to promote your referral program. There are hundreds of ways to do this but you will want to automate the process. You can build a referral program invitation in your post-purchase email sequence that your customers receive after they have received their product. You can also promote your referral program within your customer’s account through a widget or sign up box.
One of the top content marketing tips that can be applied to referral program is to create special name and promote exclusivity of your program. The email subscription TheSkimm promotes their referral program by calling them “Skimmbassadors” and sharing their special rewards and prizes on their social media accounts.
Referral programs are incredibly simple but effective marketing tools that every business can use to attract more customers. Keep it simple and watch your business grow!