Benefits of Referral Marketing
4 Benefits of Referral Marketing
- Improved customer retention rate
- Referred customers are more valuable
- Valuable data
- Great ROI value
- Referral Marketing: 4 Easy Ways to Get More Customers
For a referral program to be successful, you need to have the promotion solution in place to effectively verify the actions of the advocate and friend, but once you have the right tools and strategy, you just need to get started.
1. Invite & Get Incentive
Example: If a customer makes a referral, give them a free accessory for their first successful referral. Give the referrer” as 250 OFF voucher or some other discount
Why: Both the brand advocate and the referee benefit in this campaign setup. The advocate is rewarded for their behaviour with a compelling incentive and the new customer gets a discount from day one, which will also influence the first purchase.
Note : .
- Choose the “free” product wisely.
- – you don’t want to give away high-value items but the reward must be compelling for customers to participate (and feel rewarded). Consider giving away a branded item to increase brand awareness (e.g. headphones, t-shirt, beach bag, etc.).
2. Invite & Get Credit
Example: If a customer refers 10 friends via social apps like facebook , instagram etc (with a unique URL), give them 2000 credit to spend on a hotel, restaurant or transportation is valid only in the destination of their next flight booking.
Why: The customer shares your service with their friends and increases campaign reach via social media channels. Cross-promote your other travel offerings and personalize the incentive with recommendations for their next travel destination.
Remember: Be sure to have the right promotion in place in place to carefully validate the successful referrals AND the promotion criteria so you can deliver the right incentive in real-time (e.g. location, partner location).
3. Multiple Reward: Advocate & Friend
example: If a customer makes a successful referral, give both advocate and friend 10GB of free data or credit. Continue to give 5GB every time a successful referral is made.
Why: If your business struggles to attract new customers, this is a great way to reduce customer acquisition costs and increase revenue. Rewarding advocates with recurring incentives will encourage customers to continue promoting your service.
Remember: Ensure you collect and use the right customer data in your promotional campaigns. Your solution should allow you to trigger the correct rewards in real-time to adjust your customers’ phone plans dynamically.
4. Give Gift & Get Reward
Example: If a customer invites friends to play with the gift of 50 “starter” credits, reward the advocate with 150 game credits for every successful referral. Credits will expire in 24 hours.
Why: This structure asks more from the advocate up front, the time-sensitive incentive to start and continue playing is compelling for both parties. Additionally, you lower the barrier to start playing for new/referred customers.
Remember: Set up your referral campaign logic so you can deliver credits in real-time to incentivize playing time for both parties and increase in-game spending.