When it comes to your marketing strategy, it's difficult to know which options will really move the needle and help you reach your growth, acquisition, and reactivation goals. What will really help your brand engage and activate your customers? What is the best way to deliver your brand message to the right people? Questions all marketers need to answer! Refer a friend marketing presents marketers with an opportunity to not only reach high value customers at scale, but also reach the right customers who will react positively to your brand.
Here are 3 things refer a friend marketing can do for your brand:
1) Acquire New Customers at Scale
Friends that are referred to your brand by their friends, family, and colleagues convert at higher rates. It's one of the more powerful marketing strategies for this very reason. Incentives are part of it, reciprocity plays a role, but really it's all about the inherent trust that comes from a personal referral, and how it lends itself naturally to high conversion rates.
2) Reactivate your Current Customers
At Extole, we call friends that refer their friends advocates. Advocates are your best customers; they not only purchase from you, but they extend your marketing! At Extole, we call it the power of peer to peer marketing. When advocates share your brand within their personal networks, and their friend purchases, the advocate gets rewarded for sharing in the form of an incentive. That incentive can be in kind, a coupon, or a discount code to use at a later date. Refer a friend marketing brings advocates back to your brand, ready to buy and share again.
3) Increase Loyalty through Referral
Customers who come to your brand through a referral program are more valuable across the board. They spend more, are more likely to refer others, and they are more loyal. They'll become your best customers, as they'll feel a personal connection to your brand having come through the referral channel after being referred by someone they trust.
Refer a friend marketing has incredible benefits to marketers, and is complimentary to the rest of your marketing strategy. Check out Extole's 2016 Referral Guide for more tips on how to make a powerful referral program drive growth for your brand.