Why Should Your D2C Brand Invest in a Referral Program?
Referred customers have a 37% higher retention rate
65% of new business opportunities come from referrals
83% of customers will refer your brand after a great experience
91% of US consumers will share good deals and special offers with friends and family
5 Steps to Creating a Successful Referral Program
If you choose to create a tiered rewards structure, you may feel content allowing them to continue to rack up rewards. However, if you begin with flat rewards structures, you may want to consider adding an extra layer to your referral program designed to bolster the VIP experience.
A VIP tier can follow the above structure that boosts dollars earned based on hitting set referral milestones. You can also gain inspiration from your loyalty program by:
From pinpointing the top influencers you’ll want to keep engaged and happy to identifying the referral program messaging that motivates satisfied customers, your referral program data reveals the moves you should make next.
Keep tabs on your referral program’s promotional assets and continue to test new ways to tout it. When you determine which channels and base messaging are most successful, layer on a new element in your messaging and test again. For example, upcoming holidays, big sales, and new product lines offer great opportunities to tailor your referral program promotions to the new and now.
The same goes for the inner workings of your referral program itself. Ask yourself:
Is your rewards structure generating the level of engagement you expected?
At what stage in the customer journey do most customers become referrers?
Let’s say you see a lot of prospects referring your brand. You may want to consider investing in paid social to promote your program. Or, if one-time customers make up a large portion of referrers, you’ll likely want to add a dedicated referral program email to your new customer welcome series that hits right after they enjoy their first unboxing experience with your brand.
Which types of VIP rewards generate an uptick in VIP referrals?
Look for spikes in VIP influencer engagement. Did a number of VIPs share referral links after you sent a just-because gift or when they received an exclusive discount? If so, these are the perks you’ll want to promote in future pushes.
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