How to Start a Hardware Referral Program [+ The Best Tools]

Fed up with the typical advertising strategies that empty your wallet without providing real results? It might be time to explore a more intelligent and cost-effective way to draw in new business: hardware referral programs. 

Homeowners and DIY experts are always looking for the tools, supplies, and furnishings they need for their new project. Endorsements from friends are the secret sauce that will convince them to come to you for those needs, instead of going to a competitor.

Word-of-mouth referrals not only attract new clients but also enhance your brand’s trust and credibility. By motivating your satisfied customers to share their positive experiences, you can create a reliable and budget-friendly method for gaining new hardware customers with little risk involved. Here’s how to kick off a referral program, along with some of our top recommended referral marketing tools.

What is a hardware referral program?

A hardware referral program enables you to leverage your existing customer relationships to attract new customers to your hardware business. By incentivizing your current clients to refer their friends or family, you create a mutually beneficial scenario.

They let someone share a trackable link with one of their friends who would love your products. When the friend makes a purchase – the link attributes the referral to the person who made it. This way, it’s easy to reward both parties at the right time. 

Implementing a well-organized customer referral program with referral software allows you to monitor the referrals your customers generate. This tracking can offer important insights into the effectiveness of your referral program.

Note: Referral programs are different from affiliate marketing programs. In hardware affiliate programs, creators showcase your hardware products in their content and place links to your website within that content. Any purchases made through that link earn them commissions. In contrast, referral programs involve direct, one-on-one recommendations from customers to people they know.

Benefits of hardware referral programs

Hardware referral programs come with a host of advantages. As long as you’ve got some sort of online presence (say, an ecommerce site), your hardware business can reap plenty of benefits from a referral program. And that’s especially true if you’re already receiving referrals and positive reviews.

Not only can you expect an increase in sales, but you’ll also cultivate a loyal customer base that will support your business over time.

Let’s explore some key benefits that referral marketing programs bring to hardware brands:

Refer a friend programs tap into social proof and trust. A significant number of consumers rely on reviews or recommendations from friends before making a purchase. When someone learns about your business from a trusted acquaintance, they are far more likely to buy with assurance. 

They boost brand visibility. By offering incentives to customers who refer others, you encourage them to spread the word. They might share their experiences with friends and family or even post about you on social media, expanding your reach. This means more people will become aware of your brand in a positive way.

They are more budget-friendly compared to traditional advertising methods. While ads and other marketing campaigns can be costly and don’t guarantee results, referral programs are generally low-cost and have a higher likelihood of success. You’re investing in customers who are already familiar with your brand.

They carry low risk. Although you need to invest in referral software to get started, your only expense comes when a purchase is made. If there are no results, you don’t incur any costs.

They foster customer loyalty. Thanks to the influence of social proof, friends who are referred are not only more inclined to make a purchase but are also 18% more likely to stay loyal and make repeat purchases in the future.

They have the potential for exponential growth. When one customer refers a friend, that friend may also share the recommendation with others. This powerful word-of-mouth marketing can lead to significant growth for your business.

Referral software for hardware brands [Free Tools]

These referral tools for hardware brands are a free and easy way to help you start your referral program.

Want a fully automated referral program for your hardware business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Before launching a referral program

Not every hardware business is prepared to implement a referral program, despite the numerous advantages it can offer.

To make your referral program a success, it’s crucial to concentrate on several key factors.

Firstly, establish a solid reputation by providing an outstanding experience, one that goes above and beyond what your competitors offer. That’s all about providing the top-notch products customers need for their home improvement, and the stellar customer service that equips them to get the job done.

Having a loyal and content customer base is essential. When clients genuinely enjoy their interactions with your hardware brand, they are more likely to recommend you to others.

Checking in on your reviews, feedback forms, and surveys can help you assess your readiness for a referral program, as they offer valuable insights into how well you are meeting your customers’ needs. If customers are already recommending your products or services, that’s a positive indication that they would be even more willing to do so with added rewards.

Hardware referral program tips

Now that you know you’re ready, follow these best practices to make your referral program a success:

Choose the right rewards

The rewards you offer play a crucial role in attracting participants to your referral program. They need to be valuable to your customers, but still must be a smart play for your bottom line. 

Using a dual-sided reward system can be especially beneficial, as it rewards both the person making the referral and their friend once the friend becomes a new customer. This method not only promotes more regular referrals but also motivates the friends being referred to select your store.

So, what sort of rewards should you offer? We recommend giving out cash, Visa gift cards, or non-competing gift card rewards, since they let customers spend the reward on whatever they want. Or, to promote more spending at your store, give out coupons or credits for your own business’ store (a great choice for the friend reward, since it encourages that first purchase). 

You might offer the incentives on a commission basis or on a stepped scale, where higher-value purchases let referrers reap bigger rewards.

Make sharing effortless  

Ensure that your referral process is easy to navigate for both current and past customers. They should be able to access the program and share it with their friends with just a few clicks or taps.  

With Referral Rock’s One Click Access links, individuals can quickly start promoting your business. These links allow them to join the program automatically, eliminating the need for sign-ups or form completions.  

Remember to include One Click Access links in all your promotional emails regarding the referral program. This includes newsletters and transactional emails, not just those specifically focused on promoting the referral program.  

Additionally, Referral Rock enables both new and existing members to log into their referral portal using popular social logins like Google and Facebook. This simplifies the process, as they won’t have to remember a password.  

When customers arrive at the referral page, it should be easy for them to grasp the next steps and start referring:  

• Create an engaging headline that clearly states what customers need to do (share) and emphasizes the benefits for them (the reward).  
• Summarize the program and the steps to earn rewards in 3-4 straightforward bullet points.  
• Include a prominent call-to-action button that motivates customers to start sharing.  
• Direct customers to an FAQ page for any additional inquiries they may have.  
• Provide multiple sharing options that match how customers usually share their favorite things with friends, such as email, social media, and a unique referral link they can easily copy and share. 

Send a message to the friend – from the referrer

Reach out to the lead with a personal note from the person who referred them. The message that the referred friend receives is typically their first interaction with your business, so it’s important to leave a positive impression. 

To make things easier for the referrer, you should draft the message in advance. But ensure it maintains a warm tone and feels like it’s coming from a friend – it shouldn’t sound salesy and shouldn’t read like a brand wrote it.

Regardless of how you choose to format the message, be sure to emphasize the rewards the friend will enjoy after purchasing your services, as well as the advantages of what you offer. Also, include a compelling call-to-action to motivate the friend to take the next step.

Promote  your program in multiple locations  

You’ve put a lot of effort into developing your referral program, but all that dedication won’t yield results if your customers don’t know about it! To boost new referrals and new sales, it’s crucial to spread the word about your program. Here are some great ways to promote it:  

• In your top and bottom website menus 
• In a hero image or banner on your homepage
• On your thank-you page (confirmation page)
• Through mass emails focused on your program, sent to all your clients (we suggest sending these monthly to quarterly)  
• With engaging posts on social media  
• During in-person chats with customers, especially when you see they’re happy with your products or customer service  
• In personalized referral emails to your most loyal customers (those who leave a stellar review, give a high score on a satisfaction survey, or make more than their third purchase)
• In newsletters, confirmation emails, invoices, and other communications that aren’t solely about your referral program  
• In your email signatures and social media bios  
• Through flyers at your in-person locations, if applicable (include a QR code to bring offline interest online) 

Keep current participants engaged

It’s important to keep your referral program top of mind for users who have already joined, as they may need a little nudge to keep sharing. One effective strategy is to implement automated emails sent at key moments.

For instance, you might send a reminder email 3-5 days after someone enrolls in your program, congratulate members via email whenever they receive a reward, and utilize Referral Rock’s Monthly Summary emails, which offer a personalized overview of each member’s referral activities every month.

In addition, we recommend sending promotional emails about your referral program at least once a month during its first year. After that, aim for quarterly promotional emails while also exploring other promotion strategies. This strategy not only attracts new referrers but also puts your program back in the spotlight for those who may have referred in the past, but have since forgotten about it.

Monitor your ROI  

It’s crucial to track, test, analyze, and improve your program. Have you looked into how many invited users have joined your referral program? Which channels are most commonly used for sharing? Keep an eye on these metrics to gauge the success of the referral program, pinpoint areas for improvement, and evaluate its overall effectiveness. A simple way to assess this is by comparing costs to revenue.

Your costs encompass the rewards and the operational expenses of the program, while your revenue reflects the sales generated. If your referral revenue exceeds your customer acquisition cost (CAC), you’re seeing a positive return on investment (ROI) from your referral program. This should guide your future decisions regarding your referral marketing strategy.

Pick the best referral software

Choosing the right referral software is essential for the success of your referral program. The perfect software can make it easier to set up your program and automate its management. 

By creating referral links, you can effortlessly track where each referral originates and quickly reward those that lead to successful results. Additionally, the software collects valuable insights that allow you to evaluate your program’s effectiveness, and make the needed changes for improved performance.

Referral Rock stands out as an excellent choice for those seeking top-notch referral tracking, sharing, and engagement features, complete with concierge onboarding that doesn’t require any technical expertise.

With Referral Rock, you can:

• Effortlessly monitor referrals: Each participant receives a unique referral link, allowing you to pinpoint the source of every referral. Customers can also keep track of their own referrals through personalized dashboards.
• Automate your marketing: Keep your customers engaged with strategic, automated promotional emails, and make sharing easy with passwordless links.
• Tailor and simplify rewards: Create any reward structure you desire, and automate the payout process.
• Integrate with key tools: Connect Referral Rock seamlessly with over 50 different applications, including your CRM.
• Collect program insights: Quickly assess your program’s performance and make data-driven adjustments.
• Get started in no time: With Referral Rock, you can launch your program within just a few days, with expert assistance available at every stage.

Create your own hardware referral program  

A hardware referral program can be an excellent way to draw in new clients and grow your business. By motivating your current customers to share your services with their friends, you can create a reliable channel for acquiring new customers that’s more budget-friendly than traditional advertising.

To set up a great referral program, it’s important to select the right rewards, determine the best times to offer them, and make the referral process as straightforward as possible. Additionally, promoting your program across different platforms will keep it top of mind, and ramp up your referrals.