If your company is new to referral marketing, how do you develop a program from scratch? How do you harness the power of your existing customers and turn them into your most vocal fans? What do you offer as rewards? How do you ensure that your program optimizes for new leads and brand loyalty, all while remaining manageable and measurable?
In almost any successful customer journey, there’s at least one “moment of delight,” a point at which the customer is happiest with or most excited about your product, service, or brand. These “moments of delight” are perfect opportunities to present customers with the opportunity to refer others to your product or service. This is also where it can be very beneficial to have insight into how your prospects funnel through to become customers and the journey thereafter.
How Do I Get Started With Referral Marketing?
Getting started with referral marketing can be overwhelming, but it doesn’t have to be! The best place to start is with your customers. Determine what motivates your customers and create incentives around those factors.
In some cases, existing customers will spread the word about your products and services to their friends, family, and social networks simply because they love them that much. However, this isn’t the norm – no matter how jazzed they are about your brand. People are often reluctant to give up space on their personal platforms to brands or companies – it’s all about image, after all, and we each painstakingly craft one whether we know it or not. That’s why providing the right incentives for customers is so important, it gets them over that hurdle.
A good incentive will provide some type of desirable reward for your existing customers while also equipping them to share an incentive with others. Consider what motivates people to buy your brand in the first place, and design a program that speaks to what customers really want.
How Do I Choose The Best Referral Incentive?
Choosing the best referral incentive structure for the right audience at the right time is dependent on understanding your customers. The most successful incentive structures are easy to explain and easy to implement.
While there’s no one-size-fits-all approach to developing an incentive structure, here is the 3-step framework to planning what and how to reward your best customers for referring your brand.
Step 1: Determine What Activity to Reward
Start by selecting the specific action that members in your referral program, will be rewarded for. In other words, what is the ideal activity that should occur after a referral link is shared? Whether it’s product purchases, completed demos, or newsletter signups — aim for the outcome that will help you achieve your desired objective.
Step 2: Choose Between Non-Monetary or Monetary Rewards
After you pinpoint activity that will be rewarded, choose between these two types of rewards:
Non-Monetary: loyalty points, early access, swag or any other reward without direct monetary value.
Non-monetary rewards are enticing for companies that want to spice up their customer …read more
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