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.