Successful Referral Program Ideas to Grow your Business
What is a referral program?
It is a best-mouth marketing tactic that allows customers to promote on behalf of your brand. Referral programs allow customers to share their brand experience with partners, friends, neighbors, and colleagues.
Why referral program?
The purpose of a referral program is to sustain existing customers and as well attract new customers to your business. The people who benefit from your product/service will refer leads that are perfectly suitable for your brand.
Benefits of referral program
- New business comes from referrals.
- It is a kind of influential form of advertising. So, it is trusted by most people.
- Usually, customers are willing to buy the product or take a service that a trusted person refers to.
- Referred customers spend more time than non-referred customers.
- Creates a good loop for your business.
Types of referral:
- Customer referral
- Employee referral
- Partner referral
- And Vendor referral.
Ideas for successful referral programs:
1. Referral submission form on your website:
It is the easiest way of collecting information from existing customers. It might be the existing page or landing page which helps to register the existing customer details, link sharing options/inviting friends, and then collect their rewards. Before submitting the details you should notify the customer to “how to collect and claim their rewards.
2. Handy referral cards:
It is another important method of referral program which is implemented successfully in reputed stores/shops. This card may contain the details of the “special offer or discount” details at the time of purchase or that card could be used at the next time of purchase with some reasonable percentage of the offer. And the main use of this card is, that it can be used by anyone who keeps it with them.
3. Referral Apps:
Most of the traffic comes via mobile only. Are you running your business via a mobile app? Then integrating the “rewards program interface” is the best move. Also, it helps to share your links just in a single tab.
4. Network Businesses:
Build a good relationship with your networked business. It is like creating a network via LinkedIn or participating in the local functions which are relevant to your target audience. It helps you to create awareness of more customers.
5. Seasonal/special/Holiday campaigns:
Offer a coupon or gift on the festival or special days.
6. Social gifting referral:
This is not a financial/money-based benefit. If you give a referral code/coupon to someone, they will use it and get a free product/service/subscription for a particular period. Once they experienced the free trial, they become a perfect returning customer for your business.
7.” Give-to-get” referrals:
In this type, the customer and referrer both will get the benefits.
8. Stackable rewards:
If you are running a monthly subscription business like Gyms or massage therapy then "Stackable reward" is the best option.
Provide the referring person and the referee permanent discounts on their regular dues for how long as both parties are active members. And you should provide a discount for every converted referral to referring person since you will get more new customers in this way.