Referred customers are up to 5x more likely to share referrals than non-referred customers.
We recently discovered this while reviewing data from our referral marketing platform. It makes sense: referred customers have seen the referral process firsthand and been rewarded for it, so they already know how your program works. How can you take advantage of this fact to benefit your referral program?
Here’s one campaign that’s particularly good for retail marketers. It helps you turn the new customers you got over the holidays into advocates, continuing the referral flywheel.
The process is simple:
- Create a list of friends who’ve converted but haven’t shared.
- Set up tracking for each targeted promotion so you can monitor performance.
- At the cadence that works for your audience, download your recent customer list and send your targeted promotion.
- To make things super-easy for your customers, personalize each customer’s share experience with a unique share link they can give their friends.
Let’s dive into the details.
Step 1: Segment your new referral customers
The Extole platform automatically presents key advocate segments and includes one for recently acquired referral customers. Simply export this segment as a list for use in your campaign (e.g., email or Facebook retargeting ad). If you’re not using Extole, you’ll have to do extra work to cross-reference people who received referrals, new purchasers, and people who haven’t shared any referrals.
Step 2: Send your targeted promotion
Create a unique link for each type of promotion you’re planning (email, Facebook, Twitter, etc.). This way you can measure the performance of individual campaigns and optimize messaging, channels and more. Drop your link into the appropriate promotion. Launch your campaign to the customer segment list from Step 1. Monitor the performance of each campaign. Here’s an email campaign that Nomad, the maker of beautiful, portable smartphone charging devices, recently sent to new customers:
Step 3: Select your cadence
Choose one that works for your audience. On that schedule you’ll regularly capture your updated recent customer list and send your targeted promotions. Keep in mind high-traffic periods and plan for them. For example, right now is a great time for retailers to grab their recent customer list and run promotions to the new customers they captured during the holiday season.
Step 4: Personalize sharing links for maximum effect
You can really go the extra mile by providing your new customers with their own personalized share link, which makes them feel special and more likely to share. If you associate each person’s share link with their CRM record, you can easily drop personalized sharing opportunities into every communication you have with them.
To learn more referral marketing tips and best practices, get the 2015 Extole Referral Marketing Guide.