{"id":4407,"date":"2017-07-27T09:04:35","date_gmt":"2017-07-27T13:04:35","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=4407"},"modified":"2024-12-05T02:18:51","modified_gmt":"2024-12-05T07:18:51","slug":"referral-program-expectations","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/referral-program-expectations\/","title":{"rendered":"Your First Referral Program: Expectations Vs. Reality"},"content":{"rendered":"

You already know the benefits of a referral program<\/a>, calculated your referral program ROI<\/a> and now, you\u2019re expecting your first referral program. Congrats! There are some things you should know before diving in head-first.<\/p>\n

As with any new business endeavor, you have to set some realistic and achievable goals. Doing this is a lot easier when you know what you\u2019re getting yourself into. And while all businesses\u00a0have their differences, there are usually some commonalities along the way. Learning about what those are will help you better prepare for what you can expect with your first referral program.<\/p>\n

What your proper referral program expectations should be<\/h2>\n

It\u2019s always good to dream big, but being realistic is a better bet<\/a> when it comes to your referral program. Let’s go over what you\u00a0shouldn’t expect\u00a0<\/em>when starting a referral program, and the realities of what you’ll need for referral program success.<\/p>\n

1. Don\u2019t expect a Dropbox-level viral referral program<\/h3>\n

Thinking that way is definitely not realistic and it will likely set you up for disappointment. Yes, a referral program has the potential to bring in lots of traffic and leads. But most referral programs won’t earn viral success. Viral referral programs can and do exist, but they’re hard to come by.<\/p>\n

You may have heard about Uber and Dropbox going viral thanks to their referral programs, but that\u2019s actually not quite the case. While of course, the programs helped with their growth, ultimately, it was the business models and products that inspired so many people to become customers so quickly.<\/p>\n

2. Don’t expect the program to be your marketing “silver bullet”<\/h3>\n

A referral program is no substitute for the essentials when it comes to attracting customers. In fact, you need the basics already in place before you even think about using referral marketing.<\/p>\n

Ensure you have a solid group of satisfied customers eager to recommend you. Without this, you won’t see many referrals in the first place. How can you achieve this? Start by developing an exceptional product or service, an outstanding customer experience, and a USP that differentiates itself from the competition, .<\/p>\n

To assess if you’re meeting these goals and are prepared for referrals, see if you’ve got five-star ratings, encouraging comments both in person and online, and enthusiastic responses from customer surveys.<\/p>\n

3. Don’t expect momentum without rewards<\/h3>\n

Sure, you might have seen lots of referral programs that don’t offer rewards. But do they work? Reality check \u2013 they don’t drive as many shares as you might think.<\/p>\n

While having an excellent product and customer service is essential for encouraging sharing, most customers will only be motivated to actually share if they see a potential reward. It’s important to ensure that the incentive is appealing and useful to them.<\/p>\n

And an appealing incentive is also about offering something to\u00a0give.\u00a0<\/em><\/p>\n

People don\u2019t want to feel like they\u2019re selling out their friends just to get a reward for themselves. But if you offer them a chance to share something exciting with their friends while also<\/em> earning a little something for themselves, they’ll be eager to participate. The reward then feels more generous and selfless, making them more inclined to spread the word.<\/p>\n

4. Don\u2019t expect to set it and forget it<\/h3>\n

You can’t just launch a referral program and expect it to go to work all on its own. Like all good things, a referral program needs promoting. People won’t know it exists if you don’t tell them! To make promotion easy, implement your program into your already existing marketing efforts and it will become a regular fixture in your company.<\/p>\n

Start with direct promotions as your backbone:<\/strong> Send out monthly to quarterly emails completely focused on your program.<\/p>\n

Then, think about emails you already send out:<\/strong> Transactional emails, newsletters, update emails and the like. You can add a short sentence in all of these to advertise your referral program.<\/p>\n

Next, look at your website:<\/strong> This is the hub of your brand and where your loyal customers come to buy or get info about you, so how can you promote your referral program there? In top and bottom menus? With a hero image? On your thank you page, right after a purchase?<\/p>\n

Finally, evaluate other ways you connect with customers:<\/strong> Do you post regularly on social media? Send texts? And how might you promote your brand in your physical location or on service visits?<\/p>\n

5. Don’t expect customers to remember the program (without help)<\/h3>\n

We have no doubt you\u2019re awesome. Even so, people are busy and may accidentally forget about your rewards program. It\u2019s not necessarily because they meant to, but things do come up and people have a million other things they have to think about.<\/p>\n

Which is exactly why you should remember: You will still need to promote your program consistently after your big launch. A lack of continued promotion is an injustice to all of the hard work you put into setting it up in the first place.<\/p>\n

Besides regular promotional emails for all customers, we recommend targeted communications aimed at re-engaging current sharers.<\/p>\n