Telecom Referral Programs: How to Start One [+ Tools]

Promoting your telecom company can be quite challenging – everyone’s selling similar phone, cable, or internet services, and the market’s ultra-competitive. Often, your services are basically treated like a utility by your consumers. Everyone wants or needs services like yours, but they usually just go with the most affordable offer. Standing out from the crowd can be difficult, especially if you aren’t a bigger name – but there’s a better way.

How to set your business apart? People often rely on the suggestions of their friends and family when making key decisions. By encouraging satisfied customers to recommend your company, you can gain a significant marketing advantage over your competition.

As long as you’re providing an exceptional customer experience, getting these referrals can be more predictable than you think. One effective way to encourage these referrals is by launching a customer referral program, which also allows you to track all your referrals easily. Here are some of our best tips for creating a successful telecom referral program.

What is a telecom referral program?

A telecom referral program is an effective way for your telecommunications company to motivate customers to recommend your services to family and friends. These programs assist companies in broadening their customer base and engaging with a targeted audience, by creating customer advocacy. 

Existing customers have an easy way to share your company with their peers – just copy and share a link – and they receive rewards when their referrals successfully become new customers.

Telecom referral programs work well for:

• Mobile service providers
• Landline phone providers
• Internet/broadband services
• Television/Cable companies
• All-in-one telecommunications companies, that offer a combination of the above

Benefits of telecommunications referral programs

Here are some key advantages that referral marketing programs provide for telecom companies:

They utilize the power of trust to cut through the noise: Consumers are becoming ad-blind. They trust ads and other messages from your company less and less. Many consumers often seek recommendations from friends before deciding to change telecom providers. They trust these recommendations far more than they trust any ads that your telecom company can put out. When a potential customer hears positive feedback about your company from a trusted friend, they are much more likely to make the switch to you – and do so with confidence.

They help your company stand out: Marketing your telecom company can be challenging since most companies offer the same fundamental services. To consumers, everyone offers pretty much the same phone connectivity or the same internet service, no matter who someone chooses as a provider. But when customers advocate for your service, it differentiates you from competitors and can reduce the likelihood of customers shopping around.

They improve your reputation: By incentivizing customers to refer others, you encourage them to share their positive experiences. This can happen through personal conversations or social media posts, expanding your reach. Consequently, more people develop a favorable view of your company, enhancing your overall image.

They can lead to viral growth: When one customer refers a friend, that friend may recommend your telecom company to their own peers in a continued cycle of referring. This is known as a viral loop, and can create significant growth for your business.

They are more budget-friendly than traditional advertising: Telecom companies often face high customer acquisition costs, which can represent a significant portion of their total expenses. With the costs of paid ads and paid social on the rise, this is only climbing. Referral programs usually cost less than conventional advertising and tend to deliver better outcomes. This approach focuses on your current customers, making it a smart investment.

They carry minimal risk: While there is an upfront cost for referral software, you only incur expenses when a sale is made. If no sales occur, you don’t have to worry about additional costs. That’s totally different than with conventional ads, where you’re forced to spend blindly before you see any results.

They foster customer loyalty: Since it’s getting easier and easier to compare prices, customers might choose a provider solely based on cost, and it’s a lot harder to retain customers over time. But referral programs are the secret sauce to customer retention, and create customers with a higher lifetime value. Thanks to social proof, friends who are referred to your telecom company are not only more likely to choose your services, but are also 18% more likely to make a long-term commitment to you, and remain loyal over time.

They are easy to track: By setting up simple key performance indicators, such as the number of referred customers and revenue generated from referrals, you can effectively evaluate how well your referral program is performing.

Essentials before you start

When launching a telecom referral program, there are several key elements to keep in mind. First and foremost, exceptional customer service is crucial for your business. Since the services you provide (your phone, TV, and/or internet services) are similar to those of your competitors, an outstanding customer experience is what will help you stand out. Are your customer satisfaction survey results reflecting a high standard?

Next, ensure that you have a strong customer base established. A referral program needs a solid foundation of customers to be successful. Make sure you have a good number of existing clients who are eager to recommend your services to others. If customers are already giving you top review ratings or recommending you informally, they are likely to be enthusiastic about joining your referral program and getting rewards for their recommendations.

Understanding your customers is also essential. Consider how you will reach out to them about the referral program and what incentives will motivate them to refer others. Additionally, think about the platforms where your customers are most active in sharing recommendations.

Lastly, it’s important to create a clear branding and marketing strategy. If you want customers to promote your business, you should have a strong message and campaign ready. 

• What key messages do you want them to share about your brand? 
• Why should they encourage their friends to switch to your services? 
• What unique aspects differentiate you from other providers? (Typically, this will relate to the quality of customer service you offer.)

Referral software for telecom companies [Free Tools]

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

Want a fully automated referral program for your telecom 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)

Launching your telecom referral program

Now that you know you’re ready for a referral program, follow our best practices to maximize your growth:

Select strategic rewards

Rewards are the driving factor that will get someone to refer you, so choose them carefully. 

You’ll want to offer a double-sided reward, which means both a reward for the referring party (to get them to make referrals) and a reward for the referred friend (to encourage them to choose your services). This gives referrers an opportunity to help their friends get a good deal – and they won’t feel like they’re “selling out” their peers just to get a reward of their own.

As for the kind of reward, what to offer? For telecom companies, cash and gift cards are the most popular rewards, as they give people the freedom to spend the reward however they’d like. 

If it’s cash or a cash-equivalent gift card (say Visa or Amazon), that also looks like savings on someone’s monthly bill if they’re the payer – even if they don’t put the reward towards their bill. 

 Plus, if you’re a business telecom company, the referrer might not be the one paying the bill, so  cash and gift card rewards are super motivating no matter who’s doing the referring.

Going the gift card route? With Referral Rock and Tango, you can give people the choice of many different gift cards as referral rewards, for an even more appealing incentive. 

Alternatively, if you only offer services to individuals, you could give account credits towards people’s annual or  monthly bills, or free service upgrades. 

When to pay the reward? You might pay it out right away, after the newly referred customer signs their contract and pays their first bill. Or, you might wait until the referral has remained your customer for 30-60 days. 

If you’re setting a limit on the amount of rewards someone can earn in a year, be sure to state this on your referral page. You might want the rewards to stay under the required tax reporting level in your country (in the US, if you pay anyone $600 or more in referral rewards to a single person in a calendar year, you must send them a 1099-MISC, and this must be reported on their taxes). 

Think about different reward structures

As long as it’s easy to understand, trying out a different reward structure can help you increase the motivation to refer even further.

Some telecom companies who offer credits purposely spread out bill credits over several months – for both the referrer and friend. Following in their footsteps could be a great way to encourage both parties to stay loyal to you. You could do the same by spreading out cash back payments. Of course, both of these plans only work if both parties are paying their own telecom bills.

We’ve also seen some telecom companies offer tiered rewards, or referrer rewards that grow in value with each referral. For instance, Mint Mobile offered credits worth $25 on the first referral, $30 on the second, $35 on the third and $40 on the fourth – but the fifth successful referral netted someone $110 in credits – collectively, enough to cover their annual bill. Use a similar tiered approach with cash or a gift card, and it will work to motivate repeat referrals no matter who is paying the bill. 

And if you offer many different services, you might consider giving higher-value rewards when someone’s referral purchases a higher-priced service – say, $50 when a referral only pays for internet, but $125 if they pay for both internet and phone services. 

Spread the word about your program

Even after you invest significant time and energy into creating your referral program, it won’t reach its full potential if your customers aren’t aware of it! To increase sales, it’s essential to get the word out about your program. 

Here are some effective places to consider promoting it:

• Through mass emails dedicated to your program, sent to all your clients (we recommend doing this monthly to quarterly)  
• In your payment portal, if applicable  
• In your app – both on the home screen and in your menu
• With captivating posts on social media  
• On your website (consider incorporating an eye-catching hero image or banner for enhanced visibility, along with buttons in both the top and bottom menus)
• During conversations with customers, especially when they express satisfaction with your service  
• In personalized referral emails to your most enthusiastic customers  
• In newsletters, confirmation emails, billing notices, and other communications that aren’t exclusively about your referral program 
• In your email signatures 

Don’t be afraid to ask

To get the most referrals, asking outright is also very important – but timing is key. It’s best to ask for them when your clients are happy and thinking of you, such as when:

• They’ve just renewed their contract
• They’ve shared a fantastic review
• They’ve made a positive remark on social media
• You’ve received excited feedback during a face-to-face conversation
• You’re sending a bill and you know they’re satisfied with your services
• You’re aware they’ve already recommended your services to others beyond your referral program

Make access to the program seamless  

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

With Referral Rock’s One Click Access links, users can quickly begin promoting your business. These links allow them to join the program automatically, removing the need for sign-ups or filling out forms.

Don’t forget to include One Click Access links in all your promotional emails about the referral program. This should include newsletters and transactional emails, not just those that focus solely on the referral program.

In addition to this, Referral Rock allows both new and existing members to log into their referral portal using popular social media accounts like Google and Facebook. This makes the process easier since they won’t need to remember a password.

Make sharing incredibly easy  

Once visitors reach the referral page, it should be obvious what they need to do next. Streamlining the referral process makes it more likely that people will share, but if the instructions and page are too complicated, they might leave without sharing. Follow these best practices to see shares roll in:

• Craft an engaging headline that clearly instructs customers to share and highlights the benefits for them (the reward).
• Outline the program and the steps to earn rewards in 3-4 simple points.
• Feature a prominent call-to-action button that encourages customers to start sharing.
• Guide customers to an FAQ page for any additional questions they might have.
• Offer various sharing options that align with how customers typically share their favorite things with friends, such as email, social media, and a unique referral link they can easily copy and share.

Run your program with the right software

Selecting the right referral software is crucial for the success of your referral program. The right software enables you to efficiently track the origin of each referral and promptly reward those that lead to successful outcomes. Moreover, it gathers valuable data that helps you assess your program’s performance and make improvements for better results.

Referral Rock is an outstanding option for anyone looking for superior referral tracking, sharing, and engagement capabilities.

With Referral Rock, you can:

• Easily track referrals: Each participant gets a unique referral link, making it simple to identify where each referral comes from in real time. Customers can also access their own referral statistics through customized dashboards.
• Automate your marketing efforts: Keep your customers engaged with automated promotional emails and simplify sharing with password-free links.
• Customize and streamline rewards: Design any reward system you want, including tiered and multi-step rewards, and automate the payout process.
• Integrate with essential tools: Integrations let you connect Referral Rock effortlessly with over 50 different tools, including your CRM.
• Gain insights into your program: Quickly evaluate your program’s performance and make data-driven changes.
• Launch your program swiftly: With Referral Rock, you can get your program up and running in just a few days, with expert support available throughout the journey.

Start your own telecom referral program  

Starting a telecom referral program can be a fantastic strategy to attract new customers and expand your business. By harnessing the effectiveness of word-of-mouth marketing and encouraging your existing clients to recommend your services to their friends and colleagues, you can establish a dependable acquisition channel that is often more cost-effective than conventional advertising.

To create a successful program, it’s essential to choose appealing rewards, consistently promote your program, and ensure that the referral process is simple and user-friendly. Utilizing software can streamline this process, and it’s more manageable than you may expect!