These factors help you optimize:<\/p>\r\n\r\n\r\n\r\n
- \r\n
- Referral rate<\/strong>, or the percentage of all <\/em>purchases that come from referrals<\/li>\r\n\r\n\r\n\r\n
- Referral revenue<\/strong>, or the money you make that results from referrals.\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
Tracking these metrics, and others, gives you visibility on what you can improve about your referral program.\u00a0<\/p>\r\n\r\n\r\n\r\n
Optimizing your referral program: Best practices<\/h2>\r\n\r\n\r\n\r\n
Whether you\u2019ve started your referral program fairly recently or have had your program for a while, there are several best practices you can apply to take its performance up a notch. Here\u2019s what we recommend.\u00a0<\/p>\r\n\r\n\r\n\r\n
\u2705 Reward both the referrer and friend<\/h3>\r\n\r\n\r\n\r\n
Rewarding both the referrer and friend both motivates the existing customer to refer friends and the new customer to make a purchase. This structure is called a 2-sided or double-sided reward \u2013 but you\u2019ll need to choose each reward carefully.<\/p>\r\n\r\n\r\n\r\n
Rewards for the referrer should tie back to your business if you expect them to purchase again soon, but should be unrelated to your business if purchases are infrequent. Meanwhile, rewards for the referred friend should always tie back to your business, to encourage the first purchase. Rewards that tie back to your business include discounts, store credits, upgrades, or free products.\u00a0<\/p>\r\n
![\"bokksu](\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/05\/bokksu-subscription-referral.png\" "\\"\\"")
<\/p>\r\n\r\n\r\n\r\n\u2705 Consider changing up your rewards<\/h3>\r\n\r\n\r\n\r\n
Adding or changing up rewards can help re-engage customers if you think they aren\u2019t as motivated to refer as before. Make sure rewards are something your customers want to earn!\u00a0<\/p>\r\n\r\n\r\n\r\n
Often, the best way to figure out what customers want in a reward is to ask them directly. But be sure to strike a balance \u2013 referral rewards need to be both motivating for customers and cost-effective for you to pay out.<\/p>\r\n\r\n\r\n\r\n
You might also consider a tiered structure, where rewards increase in value the more referrals someone makes. Morning Brew and The Hustle both apply this tiered structure, and change up their rewards regularly to keep things fresh.<\/p>\r\n
![\"hustle](\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2021\/03\/hustlerewards.png\" "\\"\\"")
<\/p>\r\n\r\n\r\n\r\nGenerally, you should only give rewards when the referred friend converts (purchases or subscribes). But if you\u2019re a B2B or another business with a longer sales process, it might be more motivating if you offer a smaller reward when a lead is qualified, and then a larger reward if that lead ends up purchasing.\u00a0<\/p>\r\n\r\n\r\n\r\n
\u2705 Add in a referral contest\u00a0<\/h3>\r\n\r\n\r\n\r\n
Contests are a great way to ramp up referral program engagement, especially at crucial sales periods or slower times. There are two main ways to implement a referral contest<\/a>:<\/p>\r\n\r\n\r\n\r\n
- \r\n
- You could run a contest where people with the most referrals in a given period earn an extra reward.<\/li>\r\n\r\n\r\n\r\n
- Or, you could hold a valuable prize drawing where every referral earns an entry. This means the more referrals someone makes, the more chances they have to win.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
If you choose to add a contest, be sure to still give out smaller rewards for every referral (or tiered rewards whenever anyone meets certain referral milestones). Making the contest prizes the only rewards can easily backfire, as people may be reluctant to refer if they think they have no chance of winning.\u00a0<\/p>\r\n
![\"morning](\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2023\/02\/morning-brew-referral-program-macbook-tweet.png\" "\\"\\"")
<\/p>\r\n\r\n\r\n\r\n\u2705 Ramp up your program promotion<\/h3>\r\n\r\n\r\n\r\n
Giving customers well-timed reminders of your program can help optimize its performance. Even if you\u2019re telling customers about your program well through one avenue, you might be overlooking other channels where you could promote it.\u00a0<\/p>\r\n\r\n\r\n\r\n
Here\u2019s how you can promote your program<\/a>:<\/p>\r\n\r\n\r\n\r\n
- \r\n
- A hero image or banner on your website homepage<\/li>\r\n\r\n\r\n\r\n
- Buttons in the top and bottom menus of your website<\/li>\r\n\r\n\r\n\r\n
- In mass emails focused on your program<\/li>\r\n\r\n\r\n\r\n
- In personal referral emails sent to your most loyal and satisfied customers<\/li>\r\n\r\n\r\n\r\n
- In news\/update emails, confirmation emails, and other emails that aren\u2019t directly related to your referral program<\/li>\r\n\r\n\r\n\r\n
- Through social media posts \u2013 consider shouting out top referrers for added social proof!<\/li>\r\n\r\n\r\n\r\n
- In email signatures\u00a0<\/li>\r\n\r\n\r\n\r\n
- In social media bios<\/li>\r\n\r\n\r\n\r\n
- If you have one, in your customer portal<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
\u2705 Send out strategic engagement emails<\/h3>\r\n\r\n\r\n\r\n
The timing of your referral program emails is also something to optimize. Regular and strategic email reminders of your referral program can help increase engagement and keep the program top of mind. But don\u2019t send out these emails too often, or else they might overwhelm your customers and deter them from sharing.<\/p>\r\n\r\n\r\n\r\n
What\u2019s the optimum timing? We recommend reaching out to all existing customers every 3-6 months with an email promoting your referral program. You might also send emails to individual customers when they have \u201caha\u201d moments and increased understanding of your product\u2019s value. For instance, you might send an email right after customers purchase, after they complete onboarding, or after they give positive feedback.\u00a0<\/p>\r\n\r\n\r\n\r\n
The right referral software will automate email sending for increased engagement with your program \u2013 whether you want to send emails on a cadence, after customers complete certain actions, or both.<\/p>\r\n\r\n\r\n\r\n
\u2705 Make sharing easy with a quick login<\/h3>\r\n\r\n\r\n\r\n
With the right referral software, you can record a customer\u2019s login information from their account, so they don\u2019t have to log in again before sharing. You can also give them email access links that record their info, without them needing to fill out a form \u2013 they\u2019re registered for the program right from the link. Or, you can let them register and sign into their referral program from their Facebook or Google account.<\/p>\r\n\r\n\r\n\r\n
\u2705 Provide multiple sharing options<\/h3>\r\n\r\n\r\n\r\n
Give multiple quick sharing options, including one-click shares via email and social media, to reflect where customers normally share cool and exciting things with friends.These sharing options should include a prefilled message, with an option for the referrer to add more information if they wish. This streamlines the process and removes a barrier to referring, but allows the referrer to personalize the message if they desire.<\/p>\r\n\r\n\r\n\r\n
Of course, you should also include the customer\u2019s unique referral link<\/a> among these sharing options, for easy sharing anywhere the customer wishes.\u00a0<\/p>\r\n
![\"freshly-referral\"](\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2021\/06\/freshly-referral.jpg\" "\\"\\"")
<\/p>\r\n\r\n\r\n\r\n\u2705 Optimize your program landing page<\/h3>\r\n\r\n\r\n\r\n
The referral landing page is the page where customers make referrals. This \u201cpage\u201d could also be a pop-up or a page within your customer portal. Since this page is the center of your referral program, take care when you design it. You want referring to look easy \u2013 if the page is too complicated, customers might bounce without sharing with anyone.\u00a0\u00a0<\/p>\r\n\r\n\r\n\r\n
Here\u2019s how to streamline and optimize your referral landing page:<\/p>\r\n\r\n\r\n\r\n
- \r\n
- Make sure it\u2019s clear that you want customers to share you with friends<\/li>\r\n\r\n\r\n\r\n
- Put the rewards and other benefits in a prominent spot, so customers know what\u2019s in it for them<\/li>\r\n\r\n\r\n\r\n
- Explain how the program works in a few simple steps<\/li>\r\n\r\n\r\n\r\n
- Keep form fields to a minimum\u00a0<\/li>\r\n
- Add in an image to help keep customers’ attention<\/li>\r\n\r\n\r\n\r\n
- Make sure the page is uncluttered, so it\u2019s not overwhelming<\/li>\r\n\r\n\r\n\r\n
- Include a visible CTA above the fold \u2013 customers shouldn\u2019t have to scroll to find it<\/li>\r\n<\/ul>\r\n
![\"omsom](\"https:\/\/referralrock.com\/blog\/wp-content\/uploads\/2016\/09\/omsom2023-1.png\" "\\"\\"")
<\/p>\r\n\r\n\r\n\r\n\u2705 Optimize the referred friend\u2019s experience<\/h3>\r\n\r\n\r\n\r\n
On the other end, the message the referred friend receives through your program is often their first impression of your brand.\u00a0 Here\u2019s how to optimize this message for highest conversion rates:\u00a0<\/p>\r\n\r\n\r\n\r\n
- \r\n
- Mention the referrer\u2019s name somewhere in the message to build trust (and in the subject line if the message is an email).<\/li>\r\n\r\n\r\n\r\n
- Make sure the whole message sounds like it\u2019s coming from a peer<\/li>\r\n
- Ideally, at least part of the message should be in the referrer\u2019s own words (a personalized, typed message that the referrer adds before sending to a friend)\u00a0<\/li>\r\n
- But you can also use a prefilled message that sounds like the referrer wrote it<\/li>\r\n
- Show the rewards that their peer has sent them<\/li>\r\n
- Explain the main points of what makes your brand great, but concisely, in a conversational way, and from the referrer\u2019s perspective<\/li>\r\n
- Include an eye-catching CTA above the fold, that the friend will click to make a purchase<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
- \r\n\r\n<\/ul>\r\n\r\n\r\n\r\n
- \r\n\r\n\r\n\r\n<\/ul>\r\n\r\n\r\n\r\n
\u2705 A\/B test your program<\/h3>\r\n\r\n\r\n\r\n
What to do if your key metrics are lower than you expect? Try A\/B testing, or testing two different variations of a referral program element (you can do this with any aspect of your messaging, copy, and layout).\u00a0<\/p>\r\n\r\n\r\n\r\n
Run A\/B tests on both the referrer\u2019s end (the landing page) and the friend\u2019s end (the message).<\/p>\r\n\r\n\r\n\r\n
- Referral revenue<\/strong>, or the money you make that results from referrals.\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n
![\"\"](\"https:\/\/lh3.googleusercontent.com\/4O8zd6ZfzBLoTya43geNE_Uoy-as4P8RTRqu2f5WIudR7UB-_00qZF991Nw9_mdaYlnrLV0q_qYMbX1fOlDgaXqCzX8zPeZGSkD70F2A-CgpVXXg1CvdjrdA_72Ww8ghUJoVp8Hu117W_2PuxfO6LfY\" "\\"\\"")
<\/figure>\r\n\r\n\r\n\r\n