Spoiler alert: People trust their friends more than they trust Kardashians.
Afterall, the average consumer has grown immune to sponsored posts by influencers who have never even tried your product.
That’s why your store needs to leverage its loyal customer base to recruit their friends and family.
The good news is, you only have to compensate your customers after they refer their friends, making referral marketing the ultimate performance-based investment.
Here are three steps to creating a successful referral program:
- Set up a generous incentive. This can be a cash reward for every referral, or a gift. If your customer sees that it’s worth their time, they’ll get friends on board. Also, don’t forget to refresh your rewards every now and then to bring in more attention.
- Set up email and SMS reminders. This is how you’ll advertise your program. Show recent purchasers what perks they can receive when they share their love for your product with their friends.
- Gamify the program. Nothing beats a little friendly competition, right? Entice customers by including reward benchmarks, such as: refer three friends and get a free product, refer 10 and get two products, etc.
There you go… the basic steps you need to create your referral program.
Try it out. And don’t be alarmed if you find the order values higher than normal.