Just like most marketing campaigns, you have to analyze the results. You must be able to monitor metrics and track your progress to gauge the success of your referral program.
Once you have your code ready, you'll need to click on the "Save & Close" button and load the "Refer and Earn" article, then you'll see your Genius Referral template.
That said, here are the metrics that you must monitor:
Participation rate refers to the number of participants in your referral program.
A low participation rate indicates that you need to ramp up your efforts to promote your referral program. Take a look at the channels people use to promote your program and A/B test your landing pages and emails.
You can also launch a survey for brand advocates to identify your brand's strengths and weaknesses.
Share rate - refers to the number of referral links brand advocates shared upon joining your referral program.
This metric lets you uncover reasons why people ignore your referral program, such as unappealing rewards.
According to
Cloudsponge, here are the average share rate benchmarks:
- 7% or lower share rate – very poor performance
- 15% – good performance
- 30% – optimal performance
Referral link click throughs – the % of referral links that were acted upon and led to clicks to your online store or more people to your website.
According to
Cloudsponge, here are the benchmarks for referral program response rate:
- Less than 4% – poor result
- 10% – good result
- 15% or more – optimal result
To improve your CTR, take a look at how you can improve your CTAs, headline, and default sharing message. Experiment with different types of content to understand the most effective means to connect with your consumers.
Referral conversions refer to the value from referral sales, which will help gauge Cost Per Acquisition (CPA) for your referral program. This will determine whether your business profits from the money you're investing in your referral program.
If the incentives are too costly to distribute en masse, then brainstorm alternative rewards. Perhaps you can offer limited-edition products to keep your brand advocates motivated and to reduce costs simultaneously.