How to Create a Successful Referral Marketing Program
Once you have a successful referral marketing program, you will notice a significant boost in traffic. Your best referrals will be existing customers who can refer others. Your email marketing campaigns should announce your referral program to your customers and include a link or code to the program. An email sent with purchase confirmation information has a high open rate, at 60 to 18 percent. This is the time when people are most excited about a new purchase, and 20% of your customers are open to joining a customer loyalty program. Click on this link: https://www.talkable.com/
for more information about the best referral marketing program.
When designing a referral program, you should consider the following factors: First, the social capital of the referrals. A referral program must make existing customers feel comfortable recommending your business to their friends. Referred customers spend on average 200% more than the average customer. This is because the people who referred them to your company have a higher likelihood of buying from you than an anonymous person. Furthermore, referral programs increase retention. It has been proven that loyal customers spend twice as much as first-time buyers, and will return many times over.
Incentives: You can offer rewards to those who refer your friends or family. For instance, doe lashes uses a referral program that rewards advocates with free lashes instead of cash. Braxley Bands, which creates Apple Watch bands made from recycled elastic fabric, offers customers an incentive to purchase through the referral link. The company's referral program has proven highly effective, and in just one year, it has surpassed one million customers.
Incentives: Referral rewards should be relevant to your business. Referral rewards should increase in value as more customers refer your business. For example, Dropbox's famous referral program stresses free cloud storage, which makes it attractive to both customers and referrals. Moreover, referral rewards should also be attractive enough for existing customers. As long as the rewards are good, referrals will keep coming back to your business. It's a win-win situation for both you and your referrals.
Achieving the goal of a referral marketing program can be difficult. However, a referral code
can boost your customer base significantly. The best referral marketing programs are effective in determining the value of the new customers that the referrals bring. Referral rewards that pay cash and reward the referrer will likely work best. You can also reward referrals through social media or SMS, or through handwritten cards. This way, you can spread the word and grow your business.
Consider Tesla. The company has tweaked its referral program nine times in the last nine years. It rewarded the top referrer with a free Tesla, a home charger, and a ticket to its factory tour. The "World's #1 Tesla Referrer" won a prize worth $16 million in two months. Another example is QALI Hair Extension Studio, a full-service hair extension salon in Vancouver, Canada. The referral program involves a points-based points system that rewards customers for referrals of their friends.
Check out this link: https://en.wikipedia.org/wiki/Marketing
for a more and better understanding of this topic.