Referral Email Marketing: How It Works and Why You Need It
Referral email marketing can be a game-changer for your business. It's a powerful strategy that 83% of Gen Z trusts referrals, and 28% try a product when recommended by a friend. You can leverage referral email marketing with your existing customer base to bring in new customers. The concept is simple: your current customers refer their friends, family, or acquaintances to your business, and in return, they receive some form of incentive. In this blog, we'll explore the intricacies of referral email marketing and why you need to incorporate it into your marketing strategy.
1. Hassle-free referral process
Always remember that your users are busy, and they will opt out if you make the process difficult. Provide clear and crisp instructions and use email templates or social media sharing buttons. The more user-friendly the referral process is for your customers, the more they'll be inclined to refer others.
Example: Uber Eats simplifies referrals by providing users with a one-click share option for food discounts.
2. Incentivize Users
What does that mean? It's a giving-and-taking process. If you want your customers to promote your business, offer them an incentive. It’s an encouraging technique that makes most of the referrals happen.
The incentive should be something your customer finds value in, and it should motivate them enough to refer their friends. Consider offering discounts, freebies, or exclusive access to new products or services as incentives.
Example: Amazon offers gift cards to both referrers and referees, driving more sales through referrals.
3. Evoke urgency
For a quick action like ‘refer a friend,' create a sense of urgency. The most popular way is to give them a deadline or a time-limited offer. People tend to act quickly when they feel like they might miss out on a great deal.
Use phrases like "limited time offer" or "refer a friend now for exclusive benefits" to create that sense of urgency and drive referrals.
Example: MakeMyTrip uses time-limited offers for referring friends to join their membership, creating urgency.
4. Personalise referrals
Some brands offer personalisation in their referral programs. They include the customer’s name, which makes it personal and more effective. Personalisation adds a human touch to your emails and makes your customers feel valued. When people feel valued, they are more likely to refer others to your business.
Example: Spotify customises referrals with song recommendations based on user preferences, enhancing the experience.
5. Target the right audience
Not all of your customers will be equally inclined to recommend others. Identify your most loyal and engaged customers and target them specifically for your referral program. According to KPMG, 86% of users like to refer a company to their family and friends.
Segment your email list to send referral invitations to the right people. This ensures that you're not wasting resources on customers who are less likely to refer others.
Example: LinkedIn encourages users to connect with colleagues and friends, effectively targeting a professional audience for referrals.
6. Leverage games or quizzes
Engage your audience by incorporating gamification into your referral program. You can create fun quizzes or interactive games related to your products or services. Offer rewards or discounts to customers who refer friends after participating in these activities. This not only encourages referrals but also provides an enjoyable experience for your customers.
Example: BuzzFeed engages users with quizzes, encouraging them to share the results with friends.
7. Two-side incentive
Think about giving both the referrer and the referee some rewards. When both parties benefit, it creates a win-win situation, making it more appealing for your customers to participate in your referral email program.
For example, offer a discount to the person who referred someone and a discount to the new customer as well. This double incentive can significantly boost your referral rates.
Example: Uber offers discounts for both referrers and referees, creating a win-win situation.
8. Follow-up and reward referrals
Don't forget to follow up with your customers after they've referred someone. Acknowledge their efforts and reward them promptly. This not only shows appreciation but also encourages them to refer more in the future.
According to Exotle's research findings, a significant 81% of consumers tend to engage more actively with brands that offer rewards. Keep track of successful referrals and ensure that your customers receive their incentives as promised.
Example: Starbucks rewards successful referrers with free drinks and discounts through personalised emails.
9. Use social proof.
Social proof is a powerful tool in referral email marketing. Highlight success stories from your existing customers who have benefited from referring others. Display testimonials, reviews, or case studies in your referral emails to build trust and credibility. When potential referrers see that others have had positive experiences, they are more likely to participate.
Example: Apple builds trust with customer testimonials and reviews, influencing potential buyers.
Final Words
In addition to the strategies mentioned above, using powerful referral software like 'Notifly' can streamline your referral email marketing efforts. Notifly offers user-friendly tools to automate the referral process, track referrals, and reward loyal customers effectively. Referral email marketing is a cost-effective and efficient way to grow your customer base while building trust and loyalty among your existing customers. Start implementing these tactics today and watch your business flourish through the power of referrals.
