Referrals are the key to business growth. According to a report from Heinz Marketing, the average B2B referral customer has a 16% higher lifetime value than a non-referred customer. 714i5x
Additionally, the report found that 84% of B2B decision-makers start the buying process with a referral.
Referral programs are an effective and scalable way to leverage the power of referrals to drive revenue. In this post, we’ll discuss the key elements of a successful referral program, and then we’ll share 13 referral program ideas to help you attract more high-quality customers and drive growth.
1. Referral program idea #1: Give them what they want 1x5956
The first step to building a great referral program is to understand your customers and what motivates them. This may seem obvious, but it’s a step that many companies skip.
The more you know about your customers, the better you can tailor your referral program to their needs and interests. This will make it much more likely that they will want to participate.
So, how do you get to know your customers? The easiest way is to simply ask them. You can use surveys, focus groups, or one-on-one interviews to get to know your customers better. You can also use data to analyze their behavior and identify trends.
Once you have a good understanding of your customers, you can start building your referral program.
2. Referral program idea #2: Offer a free product or service 6o55
Just like discounts, offering a free product or service is a great way to encourage customers to refer your business.
This is also a great way to introduce new customers to your business and show them the value of what you offer. A free product or service can be a great way to get new customers in the door and build trust with them.
Just be sure that the free product or service you offer is something that your customers will actually want. Otherwise, they’re not likely to refer your business.
3. Referral program idea #3: Give them store credit p2q4c
Who doesn’t love a good discount? Store credit is a great incentive to offer your customers because it’s easy to use and can be applied to any purchase.
Plus, it’s a win-win for you and your customers. They get a discount on their next purchase, and you get to make a sale and keep a customer happy.
4. Referral program idea #4: Offer a discount 23z2r
Discounts are a tried-and-true way to incentivize customers to make a purchase. Why not motivate them to refer a friend with a discount, too?
You can offer a discount to the referred friend, the advocate, or both. You can also offer a discount for a specific dollar amount or a percentage off. Referral program tools, like ReferralCandy, give you a lot of options to play around with the incentives and structure of your campaign.
For example, you could offer advocates a $25 discount for each friend they refer, and offer the friend a 10% discount on their first purchase. Or, you could offer the friend a $25 discount and the advocate a 10% discount.
5. Referral program idea #5: Give them cash x4c56
Who doesn’t love a little extra cash in their pocket?
If you have the budget, offering cash rewards for referrals is a great way to incentivize your customers to refer their friends and family.
Cash rewards can be a bit more complicated to manage than other types of rewards, but they can also be more appealing to your customers. Using tracking software can help streamline this process.
To make it easier to manage, you could use a cash rewards platform like Tango or PayPal to distribute cash rewards to your customers.
You could also set up a system where customers can accumulate cash rewards and then use them to make purchases on your website.
6. Referral program idea #6: Offer a chance to win 6p84n
One of the best ways to encourage customers to refer your business to their friends and family is to offer a chance to win something big.
For example, you could give away a free year of your product or service or a $1,000 gift card to a popular store. You could even partner with another business to offer a bigger prize.
This is a great way to get people excited about your referral program and encourage them to refer as many people as possible. After all, the more people they refer, the more chances they have to win.
7. Referral program idea #7: Give to charity 2n3o49
If there’s one thing people like more than getting free stuff, it’s helping others get free stuff. That’s where a charity-based referral program comes in.
This is a great way to drive growth while also giving back to your community. You can set it up so that for every new customer a current customer refers, you’ll donate a certain amount of money to a charity of their choice.
Not only does this make your customers feel good about referring your business, but it also helps increase the visibility of your brand. You can promote the charities you’re working with and encourage your customers to do the same.
8. Referral program idea #8: Create a VIP program 2e3j3f
Your best customers are your best salespeople, and it’s a good idea to reward them as such. That’s where a VIP program comes in.
A VIP program is a referral program that’s only available to a select group of people. This group of people is typically made up of your best customers, but it can also include influencers, s, and other people who have a large following.
The idea behind a VIP program is to make the people in the program feel special and exclusive. This will encourage them to refer more people to your business. After all, who doesn’t want to be a VIP?
9. Referral program idea #9: Offer an upgrade 1he2i
The best referral programs offer a reward that’s worth more than the effort required to earn it. And, what could be more valuable than a free upgrade?
Whether you’re a SaaS company, an e-commerce store, or a subscription service, you can offer your customers a free the next tier or level in your product.
For example, Dropbox’s referral program offers customers free storage space for referring their friends. And, if you refer a business, you’ll both get a free month of Dropbox Business.
If you offer a subscription-based product, you can offer your customers a free month, or a percentage off their first year. This will not only incentivize them to make a referral, but it will also give them a taste of what it’s like to be a customer at the next level.
10. Referral program idea #10: Give a gift 4n244r
Who doesn’t love a good gift?
When you give a gift, you’re not only showing your appreciation for the person that referred you, but you’re also making them feel special and valued. And, let’s be real, who doesn’t want to feel special and valued?
The key to this referral program is to give a gift that your customers will actually want. You don’t want to give a generic gift that’s not thoughtful. Think about what your customers like and give them a gift that fits their personality.
11. Referral program idea #11: Offer an experience 3q93
We’ve talked about giving away free products, discounts, and even cash — but what about offering an experience?
Experiential rewards can be a great way to drive word-of-mouth marketing for your business. This could be anything from a dinner cruise, a spa day, or a trip to a theme park.
The key here is to make sure you’re offering something that’s relevant to your customers and is something they would actually want to do.
12. Referral program idea #12: Give them a shoutout 2m1z9
Who doesn’t love a little public recognition? Give your customers a shoutout on social media, your website, or in your email newsletter.
This is a great way to show your appreciation and build a sense of community among your customers. It’s also a great way to introduce new people to your brand and get them excited about what you have to offer.
13. Referral program idea #13: Create a loyalty ladder 625y1b
A loyalty ladder is a way to incentivize your most loyal customers to refer their friends. The more friends they refer, the more rewards they unlock.
To create a loyalty ladder, you can offer different rewards for different levels of referrals. For example, you could offer a free month of your product for a customer’s first referral, a $50 gift card for their second, and a $100 gift card for their third.
You could also offer a higher percentage off of your product for each referral. For example, you could offer 10% off for a customer’s first referral, 20% off for their second, and 30% off for their third.
Conclusion 272b28
Referral programs are a great way to grow your business. By using the referral program ideas listed above, you can increase your customer base and revenue.
