A handy reference checklist to create a referral campaign that doesn't suck.
What do you want more of?
As many great thinkers have said before, it’s important you know thyself.
Deciding the aim of your campaign will help you to define the messaging and approach in a more accurate way which resonates better with your target audience.
What is the goal of your referral program?
Here are some examples:
Answering this question will help you greatly later on when you write the copy for your landing page and emails and when you choose the rewards.
Starting a referral program is much like making a phone call. There are two distinct categories of people involved, the ‘ADVOCATE’ and of course, the ‘REFEREE’.
The Advocate (also called "Referrer") is the one making the referral. They’ve usually purchased from you before and trust your brand, prompting them to want to share their experiences with their friends and family.
Referrers are only rewarded when the Referee completes a required action.
The Referee is the person being referred to your business. They’re a new customer who could also become a repeat customer if they can find value in your brand.
Should you reward both Referrers and Referees? - YES!
Rewarding both sides of a referral makes sure that both new and returning customers feel valued, regardless of their relationship with your brand.
When it comes to referral marketing, the rewards you choose are ultimately what will make or break your referral program.
How should you reward Referrers and Referees?
Rewards fall into six main categories:
A reward currency is exclusive to the company and revolves around the idea that you reward people with "more" of your product or service.
For example, online storage companies can reward users with an extra amount of storage for every new user that signs up or buys a service. Companies like Dropbox have used this type of reward to grow and acquire new cloud users.
This is one of our favourite rewards. If you can easily and cheaply give out more of your product or service, then this might be the best type of reward for you.
If you’re offering discounts, participants will find it easy to understand the value they’ll receive, making participating in your program an easy decision for both existing and new customers.
Cash incentives and percentage discounts are very popular types of referral rewards. However, their effectiveness largely hinges on how relevant the product is to the target audience. Relevant customers are likely to take advantage of the discount or coupons in order to save some cash.
On the other hand, the invitee may not be interested in making a purchase. So it is important to know who your ideal customer is.
A bundled product refers to a combination of products of other companies. Let’s say you deal with a movie service, you can bundle one year of Netflix free subscription, popcorn and 3 tickets to a cinema.
This is exactly what FlixWatcher did to get 5,000 highly targeted subscribers in 6 weeks. Bundles are a great way to make the perceived value of your rewards bigger.
They are also a great option when your product alone is a weak offer (e.g: it's a free product).
Exclusives are rewards that money can’t buy. Think a ticket for an invite-only dinner or a 1-to-1 coaching session with Tony Robbins.
This type of reward works exceptionally well for high-value, expensive products or for people who can sell their personal brand.
Exclusives are one of our favourite type of rewards because they elevate your brand credibility.
If you’re running a loyalty program in tandem with your referral program, offering points as a Referrer reward is a fantastic way to keep the two programs connected.
Referrers earn points for referring their friends to your business. They can then use these points to "buy" extra services, creating a virtuous circle.
A points-based referral program is best suited for transactional businesses, like ecommerce and retail.
Is the ‘something for nothing’ approach and the powerful and often irrational rush that people get when they are given free stuff.
Free Stuff, Free Samples, and Free Competitions are just some types of freebies to offer your customers with.
Free lowers the barriers to entry and usually generate a lot of engagement. However, be wary of spammers and people who are only interested in your freebie.
The Golden Rule:
No matter what kind of program you’re running, Referrers should always be rewarded with value.
When deciding if a reward makes sense, ask yourself:
Would I genuinely refer this product to a friend if I was offered this reward?”
Ideally, you want to remove all the guesswork and ask directly to your customers. If you have a good relationship with a few of them, ask them what they think about your rewards and if they would invite their friends. If the answer is no, try to figure out why.
Design a dedicated landing page for your program that will allow you to track the analytics of your campaign as well as give your audiences a more relevant place to understand your offer without the noise and clutter of the rest of the calls-to-action on your website.
Tie in your existing branding and style but less is more when it comes to conversion. If you simplify the conversion process with a simple form for registrations or sign-ups then your audience will find it easier to complete the action.
Make it very simple for your users to get their referral link and easy to share it with their friends. Simplicity is key; the majority of people will decide whether or not they will refer their friends according to how simple it is.
With ReferralHero, once a form is completed, users see a screen which features a referral link along with an invitation to share on all the major social networks.
Be aware that the user journey doesn’t end when the user signs up. In fact, that’s just the beginning.
As soon as they sign up you should send them a 'Welcome email' that explains in very simple words how your referral program works and how they can get the rewards.
After a while, some people will naturally “forget” about you. You should gently remind them a week or two after they sign up.
Another great way to keep them engaged is to send them an email every time they make a referral (ReferralHero does all this automatically).
The message that your referrals communicate to customers is extremely important.
A strong and clear message will make the difference between simple “shares” and real conversions.
Here’s the top messaging tip takeaways:
Headlines matter – especially when it comes to your referral program. If you haven’t picked this up yet, the headline is what will draw your participants in. A good headline should provide the gist of the program within a single sentence. It should also…
Here are a few examples of headlines that work:
The trick here is “would YOU buy it?” - Make your message as clear and enticing as you can.
Making sure that you’ve got a solid tool helps you deliver a seamless experience and can get you up and running in no time.
The choice of building your referral tool in house vs buying an off-the-shelf solution comes down to time and budget. However, bear in mind a couple of things:
On that note, check out ReferralHero, an advanced all-in-one referral marketing platform to launch your referral programs, used by over 6,000 companies.
It's simple, powerful and requires zero technical skills.
Simply signup and create your first referral campaign and your first 25 subscribers are absolutely FREE.