Increase Referrals By Setting Up a Referral Marketing Program

referral marketing blog graphic by sales and marketing technologies

June 23, 2020

Sitting around hoping that customers will refer your product or service to their family, friends, and audience isn’t an effective strategy, but setting up a referral marketing program is! Assuming you have a product or service that impresses customers, they’ll be happy to spread the word when given the right motivation.
See how to set up a referral marketing program to increase your customers and sales.

How to Set Up a Referral Marketing Program

Referral programs look different for every business but here several essential components to generate successful results.

1. Offer an Enticing Reward

Your referral program needs to give rewards that are enticing to customers and match their motivations. Brainstorm rewards that customers would benefit the most from.
Examples of rewards:
  • Free product or sample
  • Cashback
  • Discount or coupon
  • Account credit
  • Free access to a paid feature
There are a variety of rewards so make sure you select the type that is right for your business. Additionally, keep in mind that different rewards work for different customers - this is where A/B testing helps to figure out which rewards resonate best with your customers.

2. Create Effective Messaging

After you’ve selected the reward for your referral program, next you’ll need to nail down the messaging. This can be everything from the referral page on your website, email marketing campaign, social media posts, and PPC advertising.
In order for customers to know about the reward for referring your product or service, your first need to get their attention. Effective messaging is crucial for a successful referral marketing program because, without it, customers won’t be as compelled to participate.

3. Promote the Referral Program

The next step after you’ve selected an enticing reward and created strong messaging is to share your program with your customers. There are many ways to promote your referral program:
  • Post on social media
  • Create content (e.g. blog post, video)
  • Add a website popup
  • Send email and text message reminders
  • Publish a press release
  • Mention it to customers directly online, on the phone, or in-person
  • Include a note in all of your delivered packages
Your customers consume information in a variety of places so it’s important to promote your program through different mediums. By increasing awareness of your program, the more referrals you’ll receive.

4. Make It Easy

Don’t make customers jump through hoops, make it easy for them to sign up, share, and promote your product or service. You can do this by creating sharable content or promo codes for them to post on their social media or email to their friends.
The referral program should be as seamless as possible so customers are not only more likely to complete the process but do it again and again.

5. Analyze Results

After you’ve launched the referral program, analyze the results to see if there are any issues that need to be fixed. Run tests, analyze data, and smooth out any kinks to improve the program’s effectiveness.
When you don’t take the time to do some testing and analyze the results, you can miss that a certain incentive works better than another, or only asking for an email address in the referral form led to more conversions.

6. Optimize the Process

Simple changes can significantly increase referrals. However, not optimizing your program can cause a negative experience which isn’t something you want to happen. In addition to optimizing the referral process so you don’t frustrate customers, it’s important that you respond in a timely manner and follow through on your offers.
Sales & Marketing Technologies recommends using a customer relationship management system (CRM) so you can set up automated emails so customers and referrals get their reward in a reasonable timeframe. When they have a positive experience, they’re more likely to participate in the referral program again in the future.

Power Up Your Referral Marketing

Referrals are a powerful marketing tool that can increase business when done right. It’s particularly effective when it’s paired with a digital marketing strategy and CRM system. Sales & Marketing Technologies is a digital marketing agency in the Orlando, Florida area that helps businesses generate more referrals through digital marketing and automation services.
Call 407.682.2222 or contact us below for a free 30-minute referral marketing strategy session!

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