Referral Programs in your Loyalty Marketing Strategy

What do you do when you want to buy a new laptop? Research various models, compare budgets, and check for reviews. For reviews, you’d either check online reviews or ask your friends and family for recommendations. That’s what makes referral marketing the most valuable marketing.

90% of people act on suggestions from family and closed ones, whereas 70% buy a product based on online reviews. Hence, most brands have a referral program in place. The referral program rewards customers who spread the word about your products to friends, colleagues, family, neighbors, etc.

It is a fact that your customers are the best promoters of your products and brand. So, always make sure to deliver the best customer experience; when they get it, they are 5X more likely to promote your product.

Brands can create a referral program that outlines the rewards customers will receive for referring new businesses to the brand. This can include discounts, free products, or other incentives. And by rewarding customers for referrals, brands have improved their marketing initiatives by 54%.

They share unique referral links to existing customers via email, social media, or other digital channels. Once a referee purchases through that link upon referral, companies can reward them as well as give discounts to new customers. Nobody is at a loss here–you win, existing customers win, and the referee wins, too.

Airbnb earned 900% year-on-year growth through its referral program. New bookings and account creations also snowballed by 300%.

In fact, it is one of the most effective marketing channels as it boasts a lower cost-per-prospect than other channels. Along with increasing brand awareness, referral programs help create a sense of loyalty among your existing customers. And rewarding them is a way of appreciating their support!

However, run a referral program that is easy and frictionless for customers. OptCulture’s referral marketing platform helps with easy share buttons and automates rewards remittance. You can also track each transaction, monitor customers’ activities, and get insights into what works for the brand.

Our robust platform ensures a delightful customer experience that improves word-of-mouth, meaning more referrals and conversions.

Additionally, because brands can send referral links via social media and other digital channels, they can reach a much larger audience than traditional referrals. It can be especially beneficial for brands looking to expand their reach and attract prospective customers.

Referral programs can be an excellent way to attract new customers, increase brand awareness, improve customer loyalty, and boost sales.

So go out, refer, spread the word, and unlock the opportunity to win exciting rewards!