A referral program is a marketing tool where you reward your customer to refer your business to a friend\/colleague. A refer-and-earn program can help you multiply your business, raise brand awareness and increase your marketing ROI.<\/p>\n
Why choose a referral program?<\/strong><\/h3>\nYou are probably reading this because you\u2019re unsure about your referral program. Does your business really need a referral program? Let us help you with that. Here are a few reasons why you should choose a referral program.<\/p>\n
As per research:<\/p>\n
\n- 1 in 3 people adopt a business due to referrals.<\/li>\n
- Using a referral business improves customer retention rate by 37%<\/li>\n
- Referral Programs help improve sales revenue significantly.<\/li>\n
- A referral program influences 20 to 50% of buying decisions of a customer.<\/li>\n
- Referral leads are 10 times more valuable.<\/li>\n
- A good referral program builds a great deal of trust among customers.<\/li>\n<\/ul>\n
These stats have been taken from a study done by Annex Cloud. You can find them here<\/a>.<\/p>\nHow to find the right referral program for your business<\/strong><\/h3>\nIf you\u2019re sold on the idea of getting a referral program for your business, here is the next step – finding the right referral program.<\/p>\n
To understand what referral program would suit your business the best, ask yourself these questions:<\/p>\n
\n- Who is my customer? What kind of incentive\/gift would they enjoy?<\/li>\n
- What will this referral program do for me?<\/li>\n
- Will this program only help you get new customers or will it benefit existing customers too.<\/li>\n<\/ul>\n
Types of referral programs<\/strong><\/h3>\nOnce you have your priorities straight about what your referral program will do for you, choose from the below programs:<\/p>\n
1. Implied referrals<\/strong><\/h3>\nAn implied referral is a non-tangible referral program, where you aren\u2019t directly giving the customers an incentive but are requesting them to endorse your business.<\/p>\n
For example, you request a client to keep a brochure or catalog in their office or home so that other people visiting your client can look at it and try it out.<\/p>\n
This works for a nice service-related business like an interior decorator or a jewelry designer etc.<\/p>\n
2. Tangible referrals<\/strong><\/h3>\nA tangible referral is a referral scheme where you offer a tangible incentive to your customer, which is not in the form of cash. For example –\u00a0 a buy one, get one offer; Bring a friend to an event or send a gift to your customer and ask them to share it with their friends.<\/p>\n
Ideally, the product that you are promoting has your brand on it. This helps you improve brand awareness.<\/p>\n
3. Community referrals<\/strong><\/h3>\nCommunity referral programs build emotion for your brand. In such a program, you partner with a non-profit organization and donate a certain part of the proceeds or donate every time a customer purchases something from your business.<\/p>\n
4. Direct referrals<\/strong><\/h3>\nA direct referral rewards program is where an existing customer helps sign up another new customer and both get a reward. This is by far, the most popular form of the referral program.<\/p>\n
Here are examples of a direct referral program:<\/p>\n
Amazon<\/strong><\/p>\n![\"refer](\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2017\/02\/Amazon-1024x241.png\")
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FreshMenu<\/strong><\/p>\n![\"freshmoney](\"https:\/\/www.instamojo.com\/blog\/wp-content\/uploads\/2017\/02\/FM-refer-n-Earn.png\")
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These stats have been taken from a study done by Annex Cloud. You can find them here<\/a>.<\/p>\n If you\u2019re sold on the idea of getting a referral program for your business, here is the next step – finding the right referral program.<\/p>\n To understand what referral program would suit your business the best, ask yourself these questions:<\/p>\n Once you have your priorities straight about what your referral program will do for you, choose from the below programs:<\/p>\n An implied referral is a non-tangible referral program, where you aren\u2019t directly giving the customers an incentive but are requesting them to endorse your business.<\/p>\n For example, you request a client to keep a brochure or catalog in their office or home so that other people visiting your client can look at it and try it out.<\/p>\n This works for a nice service-related business like an interior decorator or a jewelry designer etc.<\/p>\n A tangible referral is a referral scheme where you offer a tangible incentive to your customer, which is not in the form of cash. For example –\u00a0 a buy one, get one offer; Bring a friend to an event or send a gift to your customer and ask them to share it with their friends.<\/p>\n Ideally, the product that you are promoting has your brand on it. This helps you improve brand awareness.<\/p>\n Community referral programs build emotion for your brand. In such a program, you partner with a non-profit organization and donate a certain part of the proceeds or donate every time a customer purchases something from your business.<\/p>\n A direct referral rewards program is where an existing customer helps sign up another new customer and both get a reward. This is by far, the most popular form of the referral program.<\/p>\n Here are examples of a direct referral program:<\/p>\n Amazon<\/strong><\/p>\n FreshMenu<\/strong><\/p>\nHow to find the right referral program for your business<\/strong><\/h3>\n
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Types of referral programs<\/strong><\/h3>\n
1. Implied referrals<\/strong><\/h3>\n
2. Tangible referrals<\/strong><\/h3>\n
3. Community referrals<\/strong><\/h3>\n
4. Direct referrals<\/strong><\/h3>\n
<\/p>\n<\/p>\n