Let's look at some tips to create a good referral program and get referrals that drive our business:
One of the main decisions we have to make when designing our referral program is what to offer as incentives or rewards, what type, and for what value.
Providing the
right incentives will allow us to get more and more customers. Of course, to choose an appropriate reward for both customers and our business, we need to analyze some indicators such as
the cost of acquiring our customers (CAC), the value of their useful life (CLTV), or the average value of their shopping cart.Thanks to this, we will determine what is the
maximum value of the rewards that we can afford and what our users prefer.
Some incentives can be:- discount coupons
- store credit
- a gift or surprise box
- cash reward
- Personalized communication
An
automated, optimized and personalized referral program will always be effective. The strategy will work much better if we are creative and personalize the messages, for example, allowing our customers to write their texts, suggest products, etc.
- Provide better experiences
Current marketing aims to offer
innovative and satisfying shopping experiences regardless of the physical or online environment, device and channel. Therefore, we must also ensure that our program encompasses all possible communication with the user and offers educational content through Mails, Social Networks, blogs, Social Ads, etc.
- Encourage referred customers to become referrers
Referred customers tend to be
more loyal. So, we must think precisely of them when programming the strategy. Let's remind them that they discovered our brand through a referral and now they could pass on their experience with us to other friends. The longer the chain of references, the broader the reach of our brand.
We must promote the quality of that product or service that our clients recommend because, through them, we are exposing our
credibility and reputation.
That risk is one of the reasons some consumers refuse to participate in referral programs. They fear the recipient's assessment and how it could damage their image if it does not match their own.
To avoid these barriers we must
promote a positive brand image and design a reliable and attractive referral program.
Driving customer service is key to making them feel comfortable signing up for our program so we can reap the benefits.