{"id":32196,"date":"2023-05-24T17:15:46","date_gmt":"2023-05-24T21:15:46","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=32196"},"modified":"2024-06-25T17:01:01","modified_gmt":"2024-06-25T21:01:01","slug":"referral-programs-without-rewards","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/referral-programs-without-rewards\/","title":{"rendered":"Referral Programs Without Rewards: When and How You Can Make Them Work"},"content":{"rendered":"\r\n\r\n\r\n<p>Referral programs are a powerful marketing tool for growing your business. They mobilize your existing audience \u2013 your customers, clients, users, or readers \u2013 to share your product with others. Usually, referral programs motivate this sharing by offering a reward.\u00a0 But what if offering rewards doesn\u2019t make sense for your business, or what if your business can\u2019t offer rewards?\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Here\u2019s how to make a referral program work without rewards. First, though, let\u2019s go over when it makes sense to go reward-free, so you can determine whether this approach is best for your business.<\/p>\r\n\r\n\r\n\r\n<p><em>If you\u2019ve already decided to run a reward-free referral program,<a href=\"https:\/\/referralrock.com\/blog\/referral-programs-without-rewards\/#elementor-toc__heading-anchor-2\"> jump to the best practices below.<\/a><\/em><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Pros and cons of running a referral program without rewards<\/h2>\r\n\r\n\r\n\r\n<p>Is it worth starting a referral program without rewards? Weigh the advantages and disadvantages below:<\/p>\r\n\r\n\r\n\r\n<p><strong>Advantages of reward-free referral programs:<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Starting a referral program \u2013 even without rewards \u2013 makes clients\u2019 sharing trackable.<\/li>\r\n\r\n\r\n\r\n<li>Starting a referral program without incentives is a great way to benchmark your initial sharing rate and conversion rate.<\/li>\r\n\r\n\r\n\r\n<li>You\u2019ll enjoy the benefits of the trust people put in their peers, with or without a reward:\r\n<ul class=\"wp-block-list\">\r\n<li>92% of people trust their peers\u2019 recommendations more than any other form of advertising.<\/li>\r\n\r\n\r\n\r\n<li>Referred friends are more likely to start \u2013 and continue \u2013 using your product or service<\/li>\r\n<\/ul>\r\n<\/li>\r\n\r\n\r\n\r\n<li>Non-incentivized referrals are the most genuine form of recommendation; they mean that clients are genuinely sharing your product or service because they love it and want others to have the same experience.<\/li>\r\n\r\n\r\n\r\n<li>Referral programs are already cost-effective; programs without rewards are even more so.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Disadvantages of reward-free referral programs:<\/strong><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Even if a customer loves your brand and says they will refer others, it might not happen. The majority of customers lack motivation to refer without an incentive in play.<\/li>\r\n\r\n\r\n\r\n<li>If the customer has to go out of their way to refer, the chances of them referring are especially slim when there\u2019s no reward.<\/li>\r\n\r\n\r\n\r\n<li>You\u2019re less likely to start a continued sharing engine: continued rewards are one main reason people will <em>keep<\/em> sharing a business via referral programs<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">When to create a referral program without rewards?<\/h2>\r\n\r\n\r\n\r\n<p>In most cases, you\u2019ll want to include rewards in your referral program, as rewards act as an added motivator to encourage sharing. However, there are some situations where running a referral program without rewards makes sense:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Your main product or service is free, so it doesn\u2019t make sense to pay for referrals \u2013 say, you offer a free newsletter or online tool<\/li>\r\n\r\n\r\n\r\n<li>You are a new or small business, and currently don\u2019t have the budget to offer rewards<\/li>\r\n\r\n\r\n\r\n<li>You\u2019re a luxury or \u201caspirational\u201d brand \u2013 tangible referral rewards don\u2019t always make sense for high-end brands, as there\u2019s often a fear that rewards could \u201ccheapen\u201d the experience<\/li>\r\n\r\n\r\n\r\n<li>You are starting your first program and want to test the waters \u2013 starting your program without rewards can help you see how willing people are to refer before you implement rewards later<\/li>\r\n\r\n\r\n\r\n<li>Federal, state, or local regulations prohibit your industry from offering a referral reward\u00a0<\/li>\r\n\r\n\r\n\r\n<li>Your business type\u2019s code of ethics prohibits or discourages referral incentives \u2013 say, you\u2019re in healthcare or dentistry<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p>If your business <em>doesn\u2019t<\/em> fit the situations above, visit <a href=\"https:\/\/referralrock.com\/blog\/referral-rewards-incentives\/\">our guide to referral rewards and incentives <\/a>to learn about the benefits of offering incentives. But if your business wants or needs to run a program without rewards, read on for our tips and best practices.\u00a0<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Referral programs without rewards: Best practices<\/h2>\r\n\r\n\r\n\r\n<p>How to run a referral program without rewards? These best practices will help you run one successfully.\u00a0<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Focus on the customer experience<\/h3>\r\n\r\n\r\n\r\n<p>If you want to start a referral program without rewards, you\u2019ll need to prioritize making your overall experience so positive that word of mouth will happen naturally. After all, your product or service itself will be the reason people want to share your brand \u2013 this is true in every referral program, but especially one that\u2019s incentive-free.<\/p>\r\n\r\n\r\n\r\n<p>Be sure that your product meets your audience\u2019s needs, and that your customer experience exceeds that of competitors. You\u2019ll need these foundations of product and service in place before you start or refine a referral program. You\u2019ll also need to ensure that you can keep delivering on these pillars even when your client base increases.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><strong>If your audience is already sharing your product or service, or leaving positive reviews, that\u2019s a good sign that you\u2019ve built the foundations of a successful referral program.\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Play up the <em>intrinsic<\/em> incentives<\/h3>\r\n\r\n\r\n\r\n<p>Even though you won\u2019t offer tangible rewards in your referral program, there are still plenty of intrinsic incentives to referring that your customers can benefit from. It\u2019s vital to play up those motivators in your messaging, so your customers understand the importance of referring.<\/p>\r\n<p><strong>Show how referring helps the customer\u2019s friend:<\/strong><\/p>\r\n<ul>\r\n<li>Does your product solve a problem they have?<\/li>\r\n<li>Will the friend enjoy a superior experience compared to competitors in your space?<\/li>\r\n<li>What aspects of your product, service, or customer experience stand out the most, that the friend will especially benefit from?<\/li>\r\n<\/ul>\r\n<p><strong>Use imagery and text that focuses on friendship and community<\/strong>:<\/p>\r\n<ul>\r\n<li>Demonstrate how sharing strengthens relationships with friends\u00a0<\/li>\r\n<li>Display images that show friends together<\/li>\r\n<\/ul>\r\n<p><strong>Show how referring helps your mission spread:<\/strong><\/p>\r\n<ul>\r\n<li>Is your mission helping others stay healthy, enhancing a presentation design experience, or something else? Make that mission clear in your messaging.<\/li>\r\n<li>Your best customers will want to help you grow even without a reward, but you\u2019ll need to remind them why they should share.<\/li>\r\n<\/ul>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\" wp-image-32202 aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/withers-insurance.png\" alt=\"withers insurance\" width=\"593\" height=\"698\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/withers-insurance.png 754w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/withers-insurance-255x300.png 255w\" sizes=\"(max-width: 593px) 100vw, 593px\" \/><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Make sharing easy<\/h3>\r\n\r\n\r\n\r\n<p>Especially when you don\u2019t have rewards, you need your referral program to be streamlined and easy-to-use to drive sharing. If the program isn\u2019t simple to use, your customers will either share independently (making the referral impossible to track) or not share at all.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Here\u2019s how to optimize the sharing experience:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Be sure customers can find and share the program in as few clicks or taps as possible<\/li>\r\n\r\n\r\n\r\n<li>Make the program simple to understand\r\n<ul class=\"wp-block-list\">\r\n<li>Explain the program in a few simple steps<\/li>\r\n\r\n\r\n\r\n<li>Make your program page uncluttered, with plenty of white space\u00a0<\/li>\r\n<\/ul>\r\n<\/li>\r\n\r\n\r\n\r\n<li>Create a clear call to action button that\u2019s easy to find, that says what the customer should do (\u201crefer\u201d or \u201cshare now\u201d) and that customers don\u2019t have to scroll to find<\/li>\r\n\r\n\r\n\r\n<li>Offer several sharing options, based on how people usually share info with friends\r\n<ul class=\"wp-block-list\">\r\n<li>Usually, this will include email and specific social media platforms<\/li>\r\n\r\n\r\n\r\n<li>You might also include an SMS option<\/li>\r\n\r\n\r\n\r\n<li>Give members a referral link to copy and paste anywhere<\/li>\r\n<\/ul>\r\n<\/li>\r\n\r\n\r\n\r\n<li>\u00a0Make sure your program is easy to use on mobile, as that&#8217;s how people naturally share things they love with friends\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Promote your program extensively<\/h3>\r\n\r\n\r\n\r\n<p>People need to know about your program for it to generate new clients. Promotion is especially important when you don\u2019t have rewards to build momentum, as you want customers to share your business in the most\u00a0 trackable way.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>So, <a href=\"https:\/\/referralrock.com\/blog\/how-to-promote-your-referral-program\/\">be sure to promote your program:<\/a><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>On your website (place a hero image or banner where it\u2019s easy to find, and\/or buttons in the top and bottom menus)<\/li>\r\n\r\n\r\n\r\n<li>In personal referral emails sent to your most satisfied customers<\/li>\r\n\r\n\r\n\r\n<li>In mass emails focused on your program, sent to all customers in 3-month or 6-month intervals<\/li>\r\n\r\n\r\n\r\n<li>In news\/update emails, confirmation emails, invoices, and other emails unrelated to your referral program<\/li>\r\n\r\n\r\n\r\n<li>Through social media posts<\/li>\r\n\r\n\r\n\r\n<li>In email signatures and social media bios<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Give the referred friend a personal note from the referrer<\/h3>\r\n\r\n\r\n\r\n<p>The message the referred friend receives through your program is often their first impression of your business. It\u2019s especially important if the friend isn\u2019t offered a reward for becoming a new customer \u2013 your unique selling point and your advocate\u2019s\u00a0 recommendation are the factors that will determine whether a referred friend becomes a new customer.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Ideally, the message should be written by the referrer, and explain why the referrer is recommending you to their peer. But you can also prompt the referrer with ideas to include in the message, or even include an editable message as a starting point that they could send as is. This will make the sending process easier for the advocate, and help make sure your unique selling points and benefits come through in the message. If you write this sample message, be sure it sounds like it\u2019s coming from the peer\u2019s perspective, and doesn\u2019t seem \u201csalesy.\u201d<\/p>\r\n<p><img decoding=\"async\" class=\" wp-image-32200 aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/kin-insurance.png\" alt=\"kin insurance\" width=\"462\" height=\"475\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/kin-insurance.png 591w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/kin-insurance-292x300.png 292w\" sizes=\"(max-width: 462px) 100vw, 462px\" \/><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Send thank you notes for referrals<\/h3>\r\n\r\n\r\n\r\n<p>It\u2019s vital to show customers how much you appreciate their referrals. When they feel appreciated, this will encourage them to keep sharing. Even without traditional incentives and gifts, there\u2019s one \u201creward\u201d that doesn\u2019t cost a thing \u2013<a href=\"https:\/\/referralrock.com\/blog\/thank-you-notes-for-referrals\/\"> a thank you note.\u00a0<\/a><\/p>\r\n\r\n\r\n\r\n<p>How much you personalize the note is up to you. You could write a handwritten note or send one via email. And you could include personal details specific to your relationship with the customer, or send a similar note to all customers, with just a few tweaks made at different times throughout the year to keep things fresh.\u00a0 Regardless of the options you choose, be sure to include the customer\u2019s name and show genuine appreciation for the referral.<\/p>\r\n<p><img decoding=\"async\" class=\"size-full wp-image-26427 aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/06\/referral-thank-you.png\" alt=\"referral mass thank you note\" width=\"596\" height=\"421\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/06\/referral-thank-you.png 596w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/06\/referral-thank-you-300x212.png 300w\" sizes=\"(max-width: 596px) 100vw, 596px\" \/><\/p>\r\n\r\n\r\n\r\n<p>Another way to say thank you is to make it public \u2013 shout out customers on social media, your website, or your blog to thank them for sending new customers your way. You might choose to reserve this public thank you for your top advocates.<\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-30138 aligncenter\" src=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/12\/xbox-ambassadors-of-the-month.png\" alt=\"xbox ambassadors of the month\" width=\"500\" height=\"523\" title=\"\" srcset=\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/12\/xbox-ambassadors-of-the-month.png 837w, https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2022\/12\/xbox-ambassadors-of-the-month-287x300.png 287w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Track your referrals with software<\/h3>\r\n\r\n\r\n\r\n<p>You&#8217;ll need to set, and track progress towards, measurable customer acquisition goals to see if your referral program is returning the desired results. It\u2019s nearly impossible for you to do this manually.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Referral software is vital because it streamlines your program creation process and makes tracking and managing referrals easier.\u00a0<\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/referralrock.com\/blog\/referral-marketing-software\/\">Referral program software:<\/a><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Lets you create a customized referral experience, tailored to your brand<\/li>\r\n\r\n\r\n\r\n<li>Tracks exactly where every referral came from, thanks to unique referral links for each client<\/li>\r\n\r\n\r\n\r\n<li>Can instantly trigger thank you emails for successful referrals, if you go the automated thank you route<\/li>\r\n\r\n\r\n\r\n<li>Keeps customers engaged with your program by auto-sending participation reminders<\/li>\r\n\r\n\r\n\r\n<li>Collects program data, so you can easily measure success and refine your program<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Wrapping up<\/h2>\r\n\r\n\r\n\r\n<p>Although going reward-free won\u2019t work for every situation, it\u2019s certainly worth starting a referral program without rewards if you fit in one of the categories we discussed above. Follow the best practices above to set your program up for success. Be sure to focus on the customer experience, as that\u2019s the factor that will drive your customers to recommend you. And when referrals start rolling in, show your appreciation with a thank you note.<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Learn when it makes sense to run a reward-free referral program, and how to make a referral program work best without rewards. <\/p>\n","protected":false},"author":14,"featured_media":25882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[14],"tags":[5985,5919,5923],"class_list":["post-32196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-referral-marketing","tag-key-takeaways","tag-education","tag-solution-aware"],"acf":{"takeaway_1":"Most of the time, you'll want rewards in your referral program. But programs without rewards can work if regulations keep you from offering rewards, you can't afford rewards , or your product is free.","takeaway_2":"If you choose not to offer tangible rewards, play up the intrinsic incentives and focus on the customer experience.","takeaway_3":"Send the referrer a thank you note to show appreciation for their successful referral (thanks that doesn't cost a dime)."},"modified_by":"Jessica Huhn","_links":{"self":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/32196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/comments?post=32196"}],"version-history":[{"count":11,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/32196\/revisions"}],"predecessor-version":[{"id":37233,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/posts\/32196\/revisions\/37233"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media\/25882"}],"wp:attachment":[{"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/media?parent=32196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/categories?post=32196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/referralrock.com\/blog\/wp-json\/wp\/v2\/tags?post=32196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}