On the 30th of July, millions of people celebrate Friendship Day, a day dedicated to connecting and reconnecting with their friends around the globe. It is also the perfect occasion for brands to build an emotional connection with their audience and one way of doing so is by leveraging a friend referral campaign.
Businesses such as Uber, Airbnb, and Dropbox are among the well-known brands for their successful referral programs by engaging and leveraging their brand’s biggest assets: their customers. Take a look at the advantages referral programs can bring to your business!
1. Identifies your most loyal customers
Customers that have a positive experience with your brand are likely to stay. Referral programs enable your company to identify and track your most loyal consumers. These might be customers who have sent a lot of referrals or shared your content online frequently.
An Accenture study found that 91% of the respondents stated that they are most likely to shop with brands that provide recommendations and offers that are relevant to them. Respond to their loyalty by personalizing their experience and rewarding them for their efforts by making them feel valued and important.
2. Extends your market reach
Referral marketing builds on positive word-of-mouth to gain greater market awareness and expand your client base. With the right incentives, this will encourage customers to join your program, become your brand’s advocates and reach out to family and friends.
Meanwhile, social media has become an incredibly vital tool in reaching a wide pool of potential leads online. Your customers can share their opinions and promote your product or service via their favorite social media site. In the post, they can include the referral code or link to join the program, giving your brand an additional boost in social media presence.
3. Fosters greater trust and brand reputation
Brands are often brought up in conversations because people want to share finds with friends who could also benefit. In fact, a Nielsen study revealed that 92% of consumers trust referrals from people they know compared to advertising directly from business.
Customers who refer your F&B and retail establishment to family and friends are perceived as trustworthy and believe that they are not being misled. It creates a personal connection that will make them more willing to listen to what your members are advocating for your brand.
4. Increases incremental revenue
Bringing in new business will drive a significant increase in sales and customer retention. According to Nielsen, people are four times more likely to buy from a store when referred by a friend. Additionally, a McKinsey study found that word of mouth is primarily the factor behind 20% to 50% of all purchasing decisions.
Curate rewards for your advocates to encourage them in inviting more friends to join your program. When referred customers are happy with their experience in your restaurant or retail store, they will keep coming back to your business, make repeat purchases, and share positive reviews.
Setting up your Friend Referral Program with Como
A referral occurs when one person recommends a business to another person. With the help of Como, your members can invite their friends to join your friend referral campaign and receive compelling benefits.
To begin with, existing members can share the invite link with their friends on any platform via email, SMS, or social media after tapping the invite button on the app’s dedicated screen. When the friend opens the link from the invite message, it will lead them to a sign-up page in web form or in the app and they can register by entering the referral code.
Encourage members to invite their friends to join by rewarding them for every friend that joins, such as a special coupon or bonus points. In the Campaign Center section, you can create the rules to reward your advocate and the friend that joins. For example, the advocate only receives its reward once the referred member makes their first purchase.
More and more businesses are realizing the significance of friend referral programs in driving sales and high-valuable customers. If leveraged correctly with the right incentives, your customers will become your brand’s best ambassadors.
Are you enticed by these benefits and ready to start a friend referral program? Reach out to your dedicated CSM or support team to help you get started. Check out this video to learn more.