Referral Promos Tips & Strategies

As already mentioned, although referral promos are highly effective across many scenarios, remember that the devil is in the details. The specific design of your referral programme influences how customers perceive your offer and their level of engagement. Our 15 years of experience in the industry have taught us a thing or two about how to boost the success of referral promotions…So, here are our best tips and strategies to maximise the results of your programme:

Give Them a Good Reason: The offer should be compelling enough to motivate your customers to make referrals. Consider offering rewards for both the referrer and the referred.

Targeted Prospects: Your referral programme should be tailored to focus on the segments that bring the most value. (Schmitt, et al., 2011).

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Make it Easy: Make sure your referral program is easy to join. The simpler it is for customers to refer, the more likely they will do it.

Dynamic Reward Structure: Consider offering rewards based on the value of the referred customer. Still, always strike a balance to prevent the programme from becoming too complex (Schmitt, et al., 2011).

Incentive Size Matters: A study by Garnefeld et al. (2013) suggests that referral programmes offering bigger rewards increase customers’ positive feelings towards a brand and their likelihood of keeping buying from it.