Sure-Shot Ways to Develop the Best Referral Program in 2023
- Posted on January 11, 2023 by Robert
- Reading time about 6 minutes
We all know the power of word-of-mouth marketing as we tend to consider & buy products that are being referred to us by our friends or family. We have a habit of asking our inner circle for a referral while searching for the thing to buy. Referrals can act as a great way for brands to bring in new customers and reward existing ones at the same time. In this blog, we will check out how the Best Referral Marketing Software like Novus can help your business implement a world-class referral rewards program.
All You Need to Know About Referral Program
The referral program is one of the most important aspects of marketing that help brands to reward both the person making a referral and the person who is receiving a referral. This system of incentivizing existing customers to recommend your services or products to their family & friends is quite effective for many businesses, especially in the eCommerce sector.
The referral rewards program helps to reward the customers sharing the referral code and the first-time customer in the form of gift vouchers, discounts, free products, etc. We all know that word-of-mouth is the best marketing form that carries trust and good intentions. That is why; building the winning referral program is a must to help businesses to reward both parties for every referral.
Tips to Build a Winning Referral Loyalty Program
Before you hire experts of the Retail Loyalty Program Provider, here are some of the best tricks that must be considered while building a referral loyalty program that will boost your business growth.
– Offer Relevant Rewards to Both Parties
Ensure that you choose rewards that are both appealing and valuable for both the sender and receiver. The more creativity you add to your reward, the more effective it will be. Some of the most common reward types are discounts, coupons, free products on first order, etc.
For instance, we can consider the example of Lyft, a successful referral program that can reward customers for being brand advocates. By referring a friend to take a ride with Lyft, new customers will get a discount while existing ones earn $10 in credits. Additionally, if existing customers refer a driver to sign up on Lyft, they earn up to $750. Benefits for both new and existing customers-
o New customers have the best discount coupon to try out a new brand
o Existing customers will refer as many friends as possible to keep earning
– Encourage Sharing Referrals on Multiple Channels
Each customer is different so as the way they shop and search for services/products. To make a referral program a success, you must ensure that you offer a variety of channels that your customers will use to share referral messages.
The channel can be categorized into two types- public and private. Public means Facebook, Twitter, Instagram, etc. which allow customers to share a referral link to an entire network and works best for a wide audience. For those who prefer private channels- SMS, Whatsapp, DM’s, etc. offers a personal experience. Ensure that you add at least one private and one public channel to maximize the program’s effectiveness.
– Create Compelling Messages To Make Referral Successful
Another aspect to be considered is creating motivating referral messages that will not only maximize the effectiveness of your referral program but also help in driving conversions. Keeps focus on branding, imagery, wording as well as tone to make your referral marketing successful.
Every brand is making use of referrals, which means, customers are flooded with referral messages either on their social media timelines or email inboxes. To make your referral message unique, here are a few things that must be considered-
o Make sure that your brand is getting exposure by adding a brand logo to the feature image and that customers know the whereabouts of the referral.
o Also, ensure that your image shows what kind of services or products you are selling
o Add a clear detail of the rewards that customers will gain by using the referral link
o Personalize the message using words such as ‘I’ and ‘My’
– Optimize Referral Program for Mobile Sharing
Smartphones are becoming the most essential part of our lives and more than 70% of referral messages come from mobile phones. Ensure that you set up a referral program that is optimized for mobile sharing so that your existing customers can easily share the referral link with their family members or friends.
The successful referral programs are the ones that work best on both mobile as well as desktops. Customers should find it easy to receive the referral link and make use of it during registration to avail of the rewards with ease. Also, allow easy sharing of referrals across all devices to increase the likelihood of referrals.
– Make Your Program Easily Understandable
Adding personalization to the referral program is a must to make customers get excited about the referral program and make them understand easily how it works. One way is to create a customized landing page that explains everything about the referral program- how they will use the referral link, how to earn rewards with referrals, clear doubts for first-time customers, etc.
Hopefully, after going through the blog, it is clear that referral programs can be one of the most trusted marketing forms that help brands to make the most of their existing customer base. All referrals are built in trust and many customers have said that they trust recommendations from friends and family more than anything. Also, referrals can help to turn existing customers into brand advocates.
If you are planning to build a great referral loyalty program, contact the experts of Novus, the most reliable Referral Loyalty Program Platform that has helped businesses make the most of their customer base to increase new customer base and achieve higher retention. To know more about Novus and its features, book a demo today and see how we can help in adding value to your business.