Did you know that there is a better way to get referrals than simply posting a program on your website? You can instantly send your referral system to your list and get instant leads. The key is knowing how referral marketing works, creating a program, and promoting it via email. You will learn these things in this article.
What is Referral Marketing
Referral marketing is the process of inviting your existing customers and website visitors to advertise your website to their family and friends. It works because it operates in a person’s circle of trust. It is pretty easy to understand:
- You offer incentives to your existing customers and website visitors.
- You give them away to advertise your products and services through an online form or a sharing feature.
- Your referrers get credited once someone signs up.
Why Do You Need a Referral Program
Referral marketing is simply compelling. It is the secret behind the growth of huge brands like Airbnb, PayPal, and Uber. But more than being a marketing method that online giants are using, it also has tons of benefits. Here are some reasons why you should create a referral program.
You Have a System Where Customers Can Advertise Your Business for You
You don’t have to do most of the heavy lifting when it comes to your marketing. You can always ask for help from your customers and website visitors. The best part is that these people already know and trust you. And if they have already purchased from you, they are far more qualified to share their experience with other people.
People Need Social Proof Before They Buy
Social proof is the driving force of most online purchases nowadays. It is pretty standard for potential buyers to search for reviews before they purchase your product or service. Usually, they don’t take the word of the business owner. Instead, they look at what other people have to say. Fortunately, referral marketing allows you to build your social proof. With your customers and website visitors advertising your business, you will instantly get some social proof for your business. And it can ultimately convince other people to buy from you.
You Get Customers With High Lifetime Value
What makes referral marketing effective is it operates around a person’s circle of trust. This circle of trust pertains to the person’s network, such as his family and friends. These people already know and trust the referrer. So the referrer no longer needs to convince his family and friends to believe him. They trust his recommendations and are far more likely to try the product and become a loyal customer. When a customer is said to have a high lifetime value, it just means that they are dedicated to you and your brand, and they are willing to buy from you again in the future.
How to Create a Referral Program
Creating a referral program is easy with software. You have to choose your reward and choose how you will distribute the prize, and you can set it up with a few clicks. You need to choose your software based on your website platform. For example, a Shopify website will need a referral app, while a WordPress website will need a referral plugin. The key is finding compatible software so that you can easily set up a referral program on your website.
How to Get More Referrals Via Email
It is not enough to create a referral program. It would help if you also invited referrers who will advertise the program for you. You will need a marketing strategy to reach potential referrers. One of the best ways to do this is via email. Promoting a referral program via email is easy and highly effective. In this article, you’ll learn how you can ask for referrals through email marketing.
Have a Benefits-Based Subject Line
Start by having a benefits-based headline. Be sure to tell your subscriber what he will get if he clicks and reads your email. You have to draw him in first. And you can do that if you state what they will get in the headline.
When writing subject lines, you must be straight to the point. Intrigue no longer works. You need to be clear and not trick your subscribers into clicking.
Highlight The Rewards
Referral marketing is effective because of the rewards. It is an incentivized form of marketing, and it can convince people to take action because they offer a prize when they do. You must highlight these rewards when you advertise your referral program via email. Your subscribers need to know what you have to offer.
Personalize Your Emails
Email marketing works if you can address your subscribers personally. You can even use it in the subject lines to get their attention. And you can also use it as you communicate with them. It helps to move away from typical templates and aim to catch the attention and talk with your subscriber in their language.
Explain the Process Clearly
Besides enticing your subscribers with your rewards, you also need to explain your referral program’s mechanics sufficiently. They cannot join if they don’t know how they will qualify. So be sure to include the details when you send that email.
As you can see, sending an email to attract referrals is not that difficult. You can even integrate your referral program into your monthly newsletter, so your subscribers are constantly reminded of its presence. The key is always to inform your subscribers that it exists. You can do it by placing a prominent link to your referral page on your website’s homepage and by including it in your emails.
Also, make it a habit to track your emails. It would help if you saw whether your subscribers are clicking and opening your emails. By doing this action, you will see how receptive your subscribers are to your referral marketing system. And you will also be able to track if they are clicking the links to your referral program.