Referrals are an extremely effective method of growing your business. People typically prefer to spend money or work with someone they trust. Plus, referrals have a 16% higher lifetime value and a 37% higher conversion rate. An endorsement from friends or family is often a good reason for people to try out your brand and they are more likely to be a good fit.
It’s not always an easy road to gain new customers. One effective method to get referrals is through a referral program or a strategy that motivates customers to recommend your business. A successful program can become a powerful tool that helps generate traffic or sales. Typically, a referral program will provide customers with an incentive or reward along with the person they refer. Examples are a $20 off discount on their next purchase or a free first subscription box.
If you considering launching a referral program or trying to grow your current program, there are strategies to keep in mind. Get inspired by other businesses who’ve seen success and know that not every tactic will work for yours. What makes your product or service unique and what does your customer base value most? These are factors to consider in building a successful referral program. View the infographic by Valpak below for a breakdown of referral program strategies and helpful tips to know along the way.
Thanks to Valpak for this graphic.