Like most marketers, you rely heavily on email to drive engagement and repeat purchases from your existing customers. And that makes sense. Email programs continue to be an effective tactic. But, with refer-a-friend, you can cut through inbox noise, gain a clear advantage, a new customer, and a repeat purchase.
Refer-a-friend is a form of marketing that is often thought of as an acquisition channel. And that’s true. Your existing customers, properly encouraged, will share your brand with their friends. Modern referral programs, however, reward both referred friends and your existing customer advocate who made the referral. And that advocate reward is a powerful retention tool:
Internal rewards encourage additional purchase – when you refer an advocate with a internal reward like a discount on subsequent purchase, you create a reason for an additional purchase that drives sales.
Automatic advocate nurture – a system that automatically communicates referral progress with your advocates deepens their connection to your brand.
Customer reactivation – refer-a-friend is a customer retention tactic that also reactivates new customers. When an advocate refers a friend, that friend may be a lapsed customer now reintroduced to your brand.
Check out our recent webinar describing common referral marketing missteps and the success of Blinds.com in creating a great customer referral program.