Genius Referrals

7 Ways To Promote Your Referral Program

Businesses with referral programs take 69% faster time to close a deal, according to Review 42, . They also enjoy a 71% higher conversion rate and a 59% higher lifetime value.

Unfortunately, launching a referral program doesn't immediately guarantee the same results but it's just the first step.

Just like all marketing campaigns, you have to launch promotions to boost sign-ups and participation. After all, people won't join if they don't know it exists.

Now, how can you promote your referral program? Here are some tips to help you get started.
1. Send a referral email

A referral email is a fast and convenient trick to announce your referral program. If you have hundreds of customers on your email list, a simple message can inform a big portion of your customer base.

Keep the email short and sweet. Highlight the referral program rewards and step-by-step instructions for interested participants. Include a CTA to direct readers to the landing page where they can get a referral code.

For example, Bombas' refer-a-friend email lets readers know their offer for free socks. This is followed by simple instructions to make a successful referral and snag as many socks as they want. Then, they can click the "Refer a Friend" CTA button to get started.
2. Make a referral program pop-up

Popups may seem annoying but they can effectively promote your referral program.

Sumo analyzed more than 1.7 million pop-ups and found that the top 10% highest-performing popups got a 9.28% conversion rate. Furthermore, the average conversion rate for popups is 3.09%. Meaning it's an effective tool to boost referral program sign-ups.

Alternatively, a referral popup could be used for encouraging new customers to make their first purchase. Freebies and discounts may encourage them to join and try your items for the first time. However, use pop-ups sparingly so they don't irritate website visitors.

For example, Julep's referral program pop-up lets users invite friends to get $15 credit. To make it more compelling, they promote their free 12-pc polish gift offer (worth $168) for joining the Julep beauty box.
3. Create social media posts

Social media posts let you announce your referral program to the world. Just post on your social media platforms and your followers will spread the news.

A good tip is to boost your post to reach your desired audience. Since referral incentives can attract new customers, then these social media ads could attract new customers.

For example, Kate Farms' "Give $10, Get $10?" post features their plant-based nutritional shakes. Brand advocates and potential customers may be tempted to join because they can earn some cash and get more of their delicious products.
Besides the initial announcement post, you can create different posts featuring your incentives occasionally. This is a great tactic, especially for retailers offering exclusive items as rewards.
4. Create a page dedicated to your referral program

Some referral program promotions - like social media posts, popups and emails - contain brief information. However, interested customers may want to learn the particulars. As a result, create a landing page with step-by-step instructions, FAQs, and links to terms and conditions of your referral program.

For example, the Sephora Singapore's referral program lets brand advocates refer their friends in exchange for discounts and points during the holiday season.
As you scroll down, you'll find a FAQs section for customers unfamiliar with the referral process.
    There are also terms and conditions for the limited-time campaign to guarantee participants can receive their rewards.
      5. Include it in your marketing emails

      Another tip is to include a short blurb about your referral program in marketing emails. It's also a low-key way to boost awareness and remind customers that they can get perks by referring their friends.

      For example, Hotel Tonight's email is meant to introduce their personalized deals and perks. In the "friends with benefits" section, they briefly promote their referral program and provide a referral code.
      6. Promote in your storefront

      For businesses with physical shops, the storefront is an ideal location for promoting your referral program. Passerbys can learn about the opportunity and share it with the local community. You can even place a referral program banner at the storefront or windows.

      Alternatively, hand out flyers to local visitors so they can get more in-depth information. You can even make small signs promoting the program in your cashier or store shelves.

      For example, this referral program brochure by Infinity network solutions provides in-depth details about their offer. They've also included their contact number, email and website so interested customers can reach out if they have any questions.

      7. Monitor the success of your referral program

      After you've launched your promotional campaign, monitor the number of sign-ups and results for your referral program.

      Here are some metrics to consider:

      • Participation rate - the number of participants in your referral program.
      • Share rate - the number of referral links brand advocates shared upon joining.
      • Referral link click throughs – the % of referral links which led to clicks to your referral program landing page.
      • Referral conversions – refers to the value or profits generated from referral sales, which will help gauge Cost Per Acquisition (CPA) for your referral program.
      If you have a low participation rate, improve the referral program incentives to boost sign-ups. You can also ask for feedback to improve success and effectiveness.

      While you will likely promote your referral program to all customers during the initial launch, you may want to tone down the promotions eventually or promote to first-time customers only. Some customers may not end up joining the program. And, that's perfectly fine!
      Ready to launch your referral program?
      These referral program promotions are relatively easy to execute. We bet your marketers and designers will be able to seamlessly pull it off for your business.

      Don't forget that launching the referral program is just the beginning. You must consistently promote the program to boost membership every now and then. You should also monitor the success rate of referrals and experiment on possible incentives.

      How are you promoting your referral program? Let us know in the comments below.
      POSTED ON DECEMBER 14, 2020
      Genius Referrals Team.