Although it may sound simple, referral marketing can be very effective. Referral marketing is the act of inviting your customers, subscribers, or website visitors to recommend your business to their friends and family. Referral marketing software makes it easy to create your program.
Many platforms come with compatible referral software. You can set up a referral program on Shopify or WordPress in just a few clicks.
It is difficult to run a successful referral campaign. It would be easy to set up a successful referral marketing campaign on every eCommerce site that tried. However, this is not the case. It is important to examine brands that have successfully used it. This article will discuss the strategies of top brands that use referral marketing.
Why Use Referral Marketing?
Here are some reasons to use referral marketing in your business.
Referral Marketing Offers Targeted Leads
Referral marketing is a different form of marketing that targets warmer leads than other forms. Referral marketing allows prospects to promote the business to their family and friends. Their chances of converting to a referral are often greater because they have a close relationship.
This means that you don’t need to use multiple analytics tools to analyze your customers’ characteristics. Customers will search for targets that are relevant to your business.
Referral Marketing can help your business go viral
How does a business go viral? When enough people talk about it, it happens. Referral marketing is the best way to encourage people to do this. Your customers and visitors to your website will be able to create a referral page to help them refer others to your site. This is digital word-of-mouth marketing that has a wider reach.
Reviews are another powerful tool. This allows customers to share their opinions about products and services. Customers can also voice their opinion about products and services. Potential buyers are convinced to open their wallets and purchase.
Referral Marketing is Based on Trust
People react hesitantly when you introduce a new product or service to people they don’t know. They will often evaluate whether what you have to say is true and beneficial. Referral marketing is where you do all the work. Referrers are only able to recommend your products or services to those they know.
The referrer does not have to convince the customer to purchase a product or service because of their relationship. They will be more likely to give the products or services another chance if they are recommended by them.
Referral Marketing Results in Incremental Growth
Referral marketing is the fastest and most effective marketing technique. Referral marketing is viral, making it easy to find business prospects. It is now easier to promote any business with the help of social media and digital sharing.
You can expect to see your business grow faster if you harness this power and multiply it by the number of your referrers. Referral programs are essential for your business. This is the fastest way to make profits.
Top Brands Use Referral Marketing
You now know the value of referral marketing for your business. These are just a few examples of top brands using it to bring more people to their businesses. It is even more fascinating that they used it when they were just starting to build their brand. This is a great way to get more traffic, subscribers, and sales for any business, new or old.
1. Google
Google is the most popular search engine on the Internet. It is much more than that. Google is not just popular for what it can do. It’s also popular because of its referral program.
It is important to start small before a brand can become a success. It is only possible to grow its user base if there is a referral program. Google Apps for Work was launched with a referral program. They paid $15 to everyone who signed up.
Referrers have their link to use when recruiting people. It allows users to test out the new service before they sign up. This allows users to refer their service to family members and friends. It is clear that even Google, a large brand, is looking at referral marketing as a way to grow its business.
2. Uber
Referral marketing has helped Uber gain traction. This is not only for riders but also for drivers. By offering rewards and incentives, they were able to attract drivers.
The platform’s early drivers claimed their income was better when it was just starting. Referral programs can take some time to get started.
Uber offers discounts to its customers who take their first Uber rides. This will encourage people to use the platform. They also offer free rides for friends of riders. This encourages friends to sign up.
3. World of Warcraft
World of Warcraft is one of the most viral brands. This brand is a big name in MMORPG (Massively Multiplayer Online Role-Playing Game).
These games have the advantage of offering rewards in the form of limited-edition items. To get players to help promote their game, they don’t have to give out cash. This in-game item is usually enough. Their players promoted the game by themselves, as they gave away a limited edition of flaming horses for each referral.
4. Dropbox
Dropbox is another brand that has grown through referral marketing. Dropbox gave away 500MB more storage for anyone who successfully encouraged a new user to sign up.
This has proved to be very beneficial for their business. Their sales increased by 60% after this. It is the nature and purpose of the reward that makes it so useful. They knew exactly what the user needed and gave it to them.
This is a sign that they took the time to get to know their customer before launching their referral program. They made sure that the reward was relevant to the customer’s needs. Their customers were able to act and promote the referral program among their friends and family.
5. Evernote
Evernote is another company that understands the needs of customers. Evernote is not just a note-taking tool. Users can save different media and content to Evernote for later reference.
Their free version comes with limitations. They removed the restrictions on anyone who successfully referred new users. Their user base grew from this point to over 100 million. This is a great example of how important it can be to listen to customers’ needs.
PRO TIP: Evernote’s referral program is very exciting. It doesn’t just reward users for successfully referring others to the site. They also reward friends who upgrade to premium accounts. Referrers are encouraged to invite friends to sign up.
They can even persuade them to improve. Both the business owner and the referrer benefit. This is why their referral program works so well.
6. Maple
Maple’s referral program proves how rewarding it is for both the friend and the referrer. Maple is a New York City-based meal delivery company.
It was similar to Uber in that it was able to get its first users via referral marketing. Their creativity is the key to their success. They have something more than just a discount code for referrals. They gave the friend a free meal, and the referrer a $15 credit for every successful referral. Maple’s free meal concept attracted tons more users to Maple.
There are however some limitations. Each user can only join the referral program after they have completed two transactions with Maple. They will then be able to promote the program to friends and receive a free meal. There is a limit of 5 referrals per user. The reward system is not to be missed.
This program has a lot to offer. It doesn’t just encourage users to use the service. They can also transact with the brand a minimum of two times. This is where the brand’s relationship would be established. This will make it easier for the user to place another order. This is a smart way to organize your referral program.
7. ReadyTalk
What is a successful referral? Businesses have their definitions of success. ReadyTalk does not consider sales conversion to be a “successful referee,” as most business owners do. The brand instead rewarded small acts of promotion, such as a single share. They can then build and sustain a relationship with customers.
ReadyTalk’s unique approach is unrivaled. ReadyTalk is not like any other referral program. Instead, they approach top advocates to help them with their referrals. It is much easier to convince them to promote it since they already have a relationship with them.
8. Tesla
Tesla offers a unique product – an electric car. They also offer a great referral program. It is more difficult to find a new customer because they offer a high-ticket item.
The old referral program rewarding customers who refer friends with $1000. They realized that it would be more effective if their customers refer more people. They created a contest-type referral program.
Referring people to the brand can earn customers prizes. They also offer a free model of an electric car to anyone who refers 20 people in their area. Their prospects can’t refuse such an offer because of the great rewards.
9. FreeAgent
FreeAgent is a software company so it has a unique approach. They also offer a referral program that rewards both the friend and the referrer.
Both parties receive 10% off their software. They will offer 10% discounts to both parties as long as they remain subscribed. This is a good thing for the brand as it encourages users to stay subscribed and they also get a discount on their subscription.
10. Harry’s
Referral programs can be used for more than just digital products. It can be used in retail stores like Harry’s.
Harry’s is a male grooming brand. They sell shaving equipment and razors. Their referral program is unique because its customers are automatically signed up for their program once they subscribe.
After they submit their email addresses, they will be taken directly to a page that contains a link to share with their friends. They also offer a referral contest that offers prizes. This encourages customers to refer others to the business.
You can learn from the experiences of these brands to come up with creative ways to launch your referral program. You don’t even have to be a big brand to reap the benefits. Even a brand like Best Hunting Bow Labs did this successfully.
