Whether small or big, when you ask eCommerce shops where their business usually comes from, the majority would definitely have the same answer, from word of mouth referrals. Referrals or recommendations from other people could be achieved easily when you go viral, there are also some automate ones, and more profitable ones. What we have to learn is how to make all of these happen.
Though referrals could just happen, the more you make your referral program formal, when a process is in place, it brings you a more increased sales through word of mouth. Wharton, HBR, Nielsen, Forrester, has established notable studies showing how referral marketing is one of the most effective marketing strategy. In the studies that they have done, it also shows how the lifetime value of a customer extends because of referral marketing. Some well-known companies like PayPal, Uber, Dropbox, are living proof that referral marketing system could bring growth to businesses. Those mentioned all have millions of customers today and they all invested in building a software that could promote and manage their customer referrals.
When we say let people know about your referral program, it sounds like common sense, right? by time you’ll be managing hundreds of different things at one, you’d be able to forget that easily. One thing that could definitely define the success of your referral program.
The best source of referrals would be from your existing customers and your past customers because they are people who have actually done business with you before, they could speak from their experience and recommendation to people they actually know would make the referral more valid. When you reach to people who have tried you and has been satisfied with your service then they are more likely to give out a word for you. When a person follows you on social media, which means you caught their interest. So it’s possible that they are already talking about it with their friends. Therefore, it’s a good way to provide them with a reason to share.
So, if you’re active on social media platforms and you have a good amount of following then that’s a good place to start in. Reminding your past customers about your referral program and brand is also a good thing to do, just make sure you don’t sound pushy! You could always say “Hello! How are you enjoying your summer we have new deals today. Grab a friend for 20% off on your purchase.” Whether a customer is inactive or not, if they have purchased from you then still consider them to be a source for referrals.
If you’re wondering when the best time for referrals are, it’s when your customer is at the peak of their excitement. When they are actually feeling excitement and they are happy. One ways to catch their happiness is when they compliment the product or service that you’ve done for them. And when this happen to you, go ahead and take the opportunity. You could ask at that very moment if they have other friends who might benefit from what you offer. Another time is when they pay you, go ahead and ask after. You can use a customer satisfaction surveys, most of them would provide you with positive feedback. Remember that your last question on a survey should ask for some referrals. A high level for referral is when an associate sends out a letter of intro to you, when they are referring you to their influences, and when you go into it your cold referring situation would become a lot warmer.
At the very beginning you should be able to talk about the available conditions of a reward if there is. You should be as transparent as possible from the very beginning. Make sure that your customers won’t be left with a bad taste on their pallet on the end of their journey. Since you already know that not everyone is used to seeing the normal terms used in referral programs, make sure you are able to tell them clearly. You could give out a clear email about the mechanics through an email or leave it on a page of your website to help them find more info regarding the referral program
There are some people who might sign up but not really commit then they forget about it. Retargeting is a good chance to get back to them. When you retarget your past customers it’s just like you’re giving them a light nudge to move forward and continue their referral experience. These people have a high chance to be people who are interested in joining but wasn’t able to do so because of some reasons. When you remind them, think about it as doing them a favor, just make sure you don’t seem pushy. When a person has shown interest into your program, don’t be ashamed to advertise to them directly.
Reward the best referrers
When a person refers you a couple of times, or if they go out of their way whenever they can, you should be able to go out of your way to show them you appreciate it every once in a while. A care package is a good idea, but a lot of people just sends out a handwritten letter for thanking them. And when a person has referred them successfully, some companies would offer discounts. Remember that 5 customers is a good enough revenue so make sure you find ways to share that piece of pie.
There are unique benefits
There are referral programs that offer more than the others because they offer monetary benefits. For instance some eCommerce shops offer a few dollars discount or a % off of some items they sell. But remember that an amazing referral program is more unique than that because they offer special gifts, VIP access on things related to their company. If discounts is not just possible then you could send out swag of your customers choice. It’s amazing how many people would be willing to refer you in exchange for a cool shirt or mug.
Referrals could just happen but that’s not always the case. Creating a pattern and formalizing things would make things happen quicker and increase revenue from word of mouth. You can simply ask for referrals but remember there’s always a right time for everything. In this article we have four main strategies that you could do to make sure you are improving your referral program. Take note of this and make your referral program so much better.
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