Step right up to ReferralHero's marketing carnival, where we have all the tips, tricks, and treats you need to entice your customers to become brand advocates. Join in on the fun and watch your referral numbers soar!
Virality is the elusive secret ingredient to exponential growth. If you can get people to share your brand with their friends and family, you’re tapping into the world’s most effective form of marketing.
But how do you sustain the momentum of referrals? Is it possible to set up a referral system that becomes self-sustaining? That’s where Viral Loops come into play. With a little bit of clever engineering and time, you can create a loop that brings in new customers consistently and builds loyalty with your user base.
What Is a Viral Loop?
The main function of a viral loop in marketing is to be a self-fulfilling prophesy. A process that exponentially builds on itself. Something you can set up and let run wild.
How can you tap into this ouroboros of new customers? By encouraging your existing customers to share your business with their friends. When they bring someone new on board, that new person will share with their friends, and you’ve created a viral loop.
Digital marketing is rife with viral loops because of how the internet operates. Everything online is designed specifically to be shared. From viral videos to bits of knowledge and information, people are primed to spread information digitally.
The challenge then becomes getting them to share your brand. If you can tap into that, you’ll be flying high.
Benefits of Viral Loops
While their ability to self-sustain in an ideal world is spectacular, there are tons of other reasons to get invested in viral loops.
- Brand Awareness - Every time someone shares your brand, you become more recognizable. Credibility is easy to cultivate when you’re on everyone’s feeds - and minds
- User Acquisition - Not only will swaths of people hear about your company, but they’ll be more likely to buy from you. 88% of customers trust recommendations made by friends more than any other form of marketing
- Customer Engagement - Viral loops constantly keep you on your customers’ minds, especially when sharing your brand with their friends and family. This is a one-way street to increased engagement and repeat business
- Low Cost - When set up properly, a viral loop can operate as free advertising. While you might have to put in some resources to get it going, or to sustain it long-term, it’s still significantly less expensive than traditional advertising
At the end of the day, viral loops are a hyped-up version of word-of-mouth marketing. It has a lot of the same benefits as any other referral-based strategy.
Understanding Viral Loop Mechanics
When you set out to create a viral loop, there are specific mechanics you need to understand. Here is a step-by-step guide to craft a loop that lasts.
Step One: Bringing In Customers
Before you can set your viral loop in motion, you need to have an existing base of customers to draw from. Eventually, this will be fulfilled through referrals, but you can use other methods to get the ball rolling and bolster numbers.
However someone finds out about your brand, be it through social media, content marketing, or a recommendation from a friend, they’ll be primed and ready to start spreading the news.
Step Two: Incentivising Sharing
As wonderful as your company is, getting people to share it unprompted is always tough. There are several ways you can give your viral loop the jumpstart it needs, including offering referrers
- Discounts
- Exclusive Features
- Gifts and Prizes
- Tickets to VIP Events
- Branded Swag
- Social Media Shoutouts
The key to choosing an impactful incentive is understanding your audience. Try to pick something that will get them excited, and build brand loyalty even more.
Another great option is to choose a two-pronged reward that benefits both the current user and their friend. This way, sharing your company feels like a gift, and the new user is more likely to check you out.
Step Three: Spreading The Word
There are tons of ways that folks can get the word out about your company, and your goal is to make it as easy as possible. You might want to
- Add share buttons to your website, app, or emails that connect to social media
- Create unique, easy-to-share referral codes that make getting rewards easy
- Develop shareable content like videos, infographics, or articles that have a call to action for sharing
- Encourage user-generated content by creating hashtags or challenges that people can participate in
All of these make sharing simple and fun. People will be far more likely to bring in new leads and feed the viral loop.
Step Four: Closing The Loop
As new customers come in, not only do you want to sell them on your awesome product or service, but you also want them to see the value in sharing with their networks. This is where the loop part of the viral loop comes into play.
The more people engage with your brand and get excited to share, the more brand advocates you have out in the world. Foster this energy by letting new users know about your referral incentives, especially after a positive interaction.
Step Five: Maintaining Momentum
If you want to sustain your viral loop long-term (which you obviously do) you need to keep your existing customers engaged and excited. This can be done through all the traditional means of retaining customers.
- Regular Communication - Keep in touch with customers through email newsletters or social media updates. This will keep your brand fresh in their minds and keep them talking about how much they love your product
- Exclusive Offers - Create deals and discounts that only go to existing customers. This makes them feel appreciated and keeps them coming back
- Customer Service - Top-notch customer service gives your users even more reasons to talk about your brand and share it with their friends
- Rewards Programs - Creating a loyalty program that gamifies customer loyalty will keep the momentum rolling, and encourage folks to share your brand even more
- Constantly Improve - Don’t get complacent! Ask for customer feedback and follow through on it, signaling to your customers that you value their opinions and giving them a sense of ownership over the company
With consistent quality and attention to detail, you can encourage users to share with multiple people in their circle, feeding the viral loop and keeping growth steady.
Step Six: Optimization
Even the best viral loops have space to improve. Take a data-first approach to improving your process by examining
- Customer Behavior
- Referral Patterns
- Conversion Rates
- ROI
- Customer Churn
Any time you find a potential weak spot in your loop, look for solutions quickly. The more efficiently your viral loop runs, the easier it will be to maintain and bring in new customers for years to come.
Viral Loop Best Practices
Not all viral loops are created equal. You'll need to follow these tips and tricks to ensure your referral feedback is sustainable and effective.
Tip One: Focus On Quality
The most important ingredient in a viral loop is a brand worth talking about. You need to start with a firm foundation of exceptional quality and value.
Start by understanding what your target audience needs and fit into their lives. If they find your company useful or think of you as a key part of their day, they’re going to start talking in no time.
Tip Two: Keep It Simple
If customers have to search around or put in tons of extra effort to share you with their network, they’re just going to click away. Make sure you have lots of easy options for them to share with just a button or two. The easier it is to share, the more likely they are to do it again and again.
Tip Three: Timing Is Everything
Knowing when to ask people to share will increase your chances of being shared tenfold. If someone has only been on your website or app for a few minutes, they have no tie to your brand yet. Asking them to share something they hardly understand themselves won’t get you far.
Instead, choose strategic times to ask for a referral. This could be any time spirits are particularly high, such as after a purchase, a positive customer service experience, or a successful product launch. People are already hyped about your brand at these points and will be way more likely to agree to share.
The Bottom Line
Viral loops are the most powerful tool in any marketer’s arsenal. They encourage exponential growth and tap into ultra-effective word-of-mouth. Even better, when set up correctly they can be largely self-sustaining.
If you’re looking for a way to both bring in new customers and build up loyalty and engagement in your existing user base, a viral loop is key. Take the time to set it up, keep satisfaction and engagement levels high, and make it easy to share. Once it’s running, you’ll be able to ride the loop all the way to the top.
Ready to 10x your software platform, mobile app, or web3 company with our automated growth engine?
In just 14 days, we help you build the same waitlist, contest, or referral program used to launch and scale Airbnb, Uber, PayPal, and 1000s of other businesses. Start your ReferralHero free trial today.
.png)
