Three parties participate in this program:
The company is actively looking for new clients.
An existing consumer is one who already uses the company's product and is willing to recommend it to others. He is also called a referrer or ambassador.
A new client, or referral , is a person who has been advised to use the product and is starting to take the first steps.
The company approaches its existing customers with an offer: "Are you happy with our product? Recommend it to your friends, and we'll give you a reward for it."
In response, consumers go to their friends british student data package and say: "I have such a cool product, I recommend you try it. If you say that I advised you to use it, you will immediately receive a discount."
How does the referral program work?
Source: unsplash.com
A new customer comes to the company and says: “A friend recommended you to me, I want to try your product.”
The company can track down whose recommendation a person came to by manually searching the database. This method is suitable for small companies or in the early stages of the referral system development.
The most common program option for customers is to receive individual referral links. They can send them to their friends directly or post them on their social media page. When a person follows this link and makes a purchase, bonuses are awarded automatically.
Another option for connecting old and new clients is to use an individual promo code. The referral enters it in a special field during the first purchase. Companies often offer to use both links and promo codes at the same time.
An important condition of a referral program is often that the referrer receives bonuses not only for the recommendation, but also for the actual sale. The friend must pay for a certain product or service, for example, buy a package of lessons, get a bank card or buy airline tickets.
Some companies do not allow bonuses to be earned if a new customer pays for their purchase with a gift certificate. Such conditions protect companies from unnecessary expenses.
Referral marketing is based on the fact that people often trust recommendations from others more than business advertising. Therefore, finding referrals becomes the main task of companies.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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Step-by-step guide to creating marketing KPIs
Template for calculating KPIs for a marketer
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
How to make KPI for the sales department so that profits grow by 20% or more?
Step-by-step template for calculating KPIs for OP managers
Checklist of 12 main indicators for website promotion