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Advertising: Here’s why your referral program isn’t working

So you whipped up a referral program for your customers.

You had high hopes when you launched it, but then… crickets.

Before you decide the referral program is not “on brand” and scrap the project altogether, make sure you’re not making any of these detrimental—but very common—mistakes:

  • There’s a better offer on your website. Your customers have been telling their friends to use their 15% off coupon code for your store. Your email capturing popup sports an alluring 20% off discount. You’re still getting the sale, but you’re not attributing it to the right source.
  • You’re not sending enough reminders. The key here is to hit your customers at their happiest. Did they just place an order? Remind them to tell their friends. Did their order just ship? Let them know the order is on its way… and remind them to tell their friends.
  • You’re making it too hard for customers to redeem their prizes. You offer $10 for every referred sale, but you send payouts out once a month when you remember. If your customers have to wait a month to get their prizes, they might stop caring.

Chances are, you’re probably falling for one of those traps.

The good news? They’re all easy fixes. Make some small tweaks and enjoy predictable acquisition costs while paid advertising prices continue to soar.