Here at ReferralCandy, we’ve been running thousands of customer referral programs for our clients. Over time, we’ve developed a body of knowledge about what makes a referral program work. We’ve witnessed retailers with great products doing well and doing not-so-well.
If you’re looking to start a referral program of your own, or you’re just curious to learn about what to expect, we’ve put together a PDF which will run you through all the questions you’ll need to ask.
Here’s a brief overview of the questions you’ll need to ask if you’re setting up a referral program.
Referral Marketing Checklist Summary:
Before the Referral Program
- Do you have a product people love? Are you getting organic word-of-mouth already?
- Check for how people are talking about your product on Twitter and other social media
- Talk to your customer in person, over email, survey them
- Try Net Promoter Score surveys
- Have you made an effort to maximize your word-of-mouth already?
- Have you already established your primary customer acquisition channels? Are they giving you a steady stream of customers?
Getting Started: Setting Up Your Referral Program
- What is the action you want to incentivize? (What do you want more of?)
- Who is the advocate, and who is the friend? (Understand your personas)
- Why should they do it? What is the incentive? (Consider both intrinsic and extrinsic)
Putting Together An Effective Referral Program
- Feel – Are you communicating your offer effectively?
- Remember – Are you ensuring that your advocates are adequately reminded of your offer?
- Ease – Have you made it as easy as possible for your advocates to share?
Ensuring Your Referral Program’s Continued Success Over Time
- Analytics – Are you measuring your success? (Understand how your campaigns are performing)
- Edge cases – Are you accounting for return policy, etc?
- Detection – are you ensuring that your referrals are properly detected (no missing referrals), and that you’re able to detect fraudulent referrals?