Posted by Every company owner understands that referral programs are the best approach to acquiring new consumers. It doesn’t matter what sort of business you run; implementing this strategy can help you get new clients and reap other rewards. Using the most referral program ideas will help you complete deals faster, develop trust, and enhance conversions.
To stand out from the crowd and remain relevant in today’s ever-changing marketing landscape, you need to develop innovative referral program ideas regularly. It’s a good thing there are so many unique ideas for customer referral programs out there.
Fortunately, we’ve put together a list of the best referral program ideas and referral program examples to help you grow your business. Let’s dive in.
1. Social Gifting
In social gifting, the person who the friend introduced receives a reward rather than the referrer. It is not always the case that rewards motivate people. Giving a lovely gift to their friends is one of the most effective ways to encourage them to participate in your referral program.
This method is ideal for a company that merely wants to raise awareness. You may use the social gifting referral program if you know people will buy your product once they hear about it. It also improves the loyalty of your current customers.
Use Case and Example
This concept was used by Try The World to commemorate their anniversary celebration. Any three friends chosen by the advocate will receive a complimentary package. The only benefit to the referrer is the pleasure of making a friend happy by introducing them to this offer.
2. Free Cash
You can give out free cash to your customers for referring your brand. You must use secure referral program software if you are giving out money. Good software will protect you from hackers. You will also be assured that you are getting good profits for the money spent.
Use Case and Example
This referral program use case was in PayPal’s referral program. They saw a 7 to 10 percent daily growth rate, bringing their consumer base to 100 million people. Despite PayPal’s success with this strategy, you may want to think about it before using it in your referral program.
If you’re going to spend money on this notion, you may as well stop doing it after a short time. After reaching their desired audience, PayPal decided to terminate the Refer-A-Friend benefit.
3. Mystery Gift
Before launching a referral program, you need to know your customers. Many of your consumers would want a little mystery, while others would prefer to know what they get in return for recommending your items to others.
Use Case and Example
MeUndies gives their consumers a surprise reward if they suggest the company to their friends. It’s easy to see why this concept is so appealing. Because it’s a mystery, you’re free to provide your consumers with whatever you’d want. For small companies, this referral program is one of the finest.
4. Discounts For Repeat Purchases
Customers who frequently return for the same items might benefit from referral programs that offer discounts on future purchases. Brands in the fashion business and those that provide needs can benefit from this concept.
Use Case and Example
Using this method, Amuze gave its supporters and their recommended friends a 25% discount on their next flash sale purchase. If you want to boost the number of customers that return to your store for repeat purchases, you may utilize this strategy.
5. Referral Contest
A referral contest is not only a fun concept for a referral program, but it also provides you with a significant advantage because there is only one prize available for the winner of the contest. Using a concept like this for a referral program also allows you to increase interaction with your company.
Ask that your customers tweet about your company, like images on Instagram and other similar activities. Your consumers will be more likely to remember your brand if you take these measures, and you will also be able to contact more potential customers.
Use Case and Example
A popular contest at Huckberry used this approach to reward the most successful referral with $1,000. By encouraging your customers to spread the word about your business to as many people as possible, you enhance your company’s visibility.
6. Upgraded Services
It’s not always necessary to try something completely fresh. When presented with a premium version, no one can refuse it. This referral program idea is appropriate for SaaS and similar businesses that provide a premium version. Customers can only use the Premium version if they recommend a particular number of others to your brand.
Use Case and Example
Dropbox used this approach in one of the most exemplary referral programs of 2018. Customers who referred a friend received an extra storage unit. For every successful recommendation, customers may earn up to 500MB.
7. Free Information
To recommend your business to others, you may provide your brand’s supporters with free educational resources, such as courses or seminars. If the information is worthwhile, then this strategy will work.
Customers may even turn against you by badmouthing your brand if they find the material useless or unrelated to your company’s positioning. Make sure your consumers don’t have to go to a lot of trouble to suggest you when you use this strategy.
Use Case and Example
GetResponse uses this concept by offering a free digital marketing course to customers. Taking the course is worth up to $200. When current customers recommend up to three friends, they will receive this course.
8. Set Up A Point Or Reward System With Levels
Refer-a-friend campaigns that provide the same reward to many people are likely to lose customers. Make it exciting by modifying your reward plan, and here is where a tiered reward or points system comes into play.
Instead of delivering the same incentives, these referral program ideas might include various stages like a game. When a consumer reaches a particular amount of recommendations, he is promoted to the next level.
Levels keep increasing and rising, and the prizes get better and better as you go. Customers will become more competitive as a result.
As a result, they’ll be more inclined to recommend others advance to a higher level and earn more significant incentives. As a result, both your customers and you benefit from the referral program, making it a win-win situation.
Use Case and Example
To entice consumers and win new ones, many internet businesses employ this tactic. An excellent example of this is Harry’s. Harry’s has developed a multi-tiered system of incentive payouts for his customers. As customers recommend friends, the prizes increase better and better as they rise through the ranks of the loyalty program.
9. Holiday Referral Offers
The busiest time of year to go shopping is unquestionably the holiday season. Throughout Black Friday, Christmas, and New Year’s Eve, shoppers are splurging on presents, winter clothing, etc. As a result, this is an excellent moment to attract new customers.
Use Case and Example
Before the Christmas season, Huckberry had a brief referral contest where referrers could win a first-class ticket home and a package of Huckberry merchandise! Even though this is an expensive item, you can easily do the same by giving your customers a unique holiday-themed product or service for suggesting a new customer to your company over the holiday season.
10. Charity Donation
The epidemic has led to an increase in the use of this referral marketing strategy. When customers recommend their friends, you may give to the charity of their choice on their behalf instead of offering discounts or monetary incentives.
It’s a great way to build customer loyalty and enhance your brand’s image. People love to help people in need, and you can allow your customers to do just that by allowing them to refer business to one another.
When customers realize that their efforts may help others in need, it will inspire them to attract more customers. The most excellent approach to getting new customers for your e-commerce business is implementing referral program ideas like this one.
Use Case and Example
The “Toys for Tots” referral program at Jay Suites is based on this concept. Toys for Tots or another registered charity will receive a $500 gift from Jay suites for each customer who refers a friend and signs a one-year or longer full-time office space lease.
11. Add a Game to Your Referral Program
Most people seem to agree on this. Your referral program might be fun for customers if you make it feel like they’re playing a game. For your consumers, this makes the recommendation process more enjoyable and engaging.
Gamification components may be used in your referral program to make it more enjoyable. You may gamify your referral program with the correct play, feedback, and reward structure elements.
The use of gamification has been proven to be successful. Online consumer involvement is boosted by 68% when games are used, according to Gigya Information. According to the same study, it increases social sharing by 22%.
Use Case and Example
Morning Brew is a brand that has mastered the art of game-based advertising. You can see that through their referral hub alone. Gaming has been an essential part of Morning Brew’s marketing strategy. Their referral program has brought in more new subscribers to their newsletter due to this.
12. Patient Referral Programs
Patients’ businesses, such as dentists and chiropractors, may be limited in their ability to participate in referral systems. Because of insurance and other issues, it may not be possible to offer a discount, but you can still give customers gift cards for referring a customer.
Use Case and Example
A perfect example is the chapmansmiles referral program. Their customers are awarded a $20 Starbucks gift card for each recommendation, and once every three months; a winner is selected from the list of patients who referred other patients to receive the main prize of $100.
13. Increase the Rewards For First-Time Referrals
This is one of the most interesting new approaches when it comes to referral program ideas. In most referral programs, both the referrer and the referred person receive the same incentives, and it isn’t even regarded whether it is the first time they’ve participated.
This is an effective tactic, but you can make it even more effective by rewarding the referral for the first time with an enormous incentive. The first time a current customer introduces a customer, you may reward them more generously with a bonus.
For example, instead of offering 15% off for each referral, you might give 30% off the first referral and 10% off each consecutive one. Customers will be more likely to join your refer a friend campaign if you reward them with a higher reward level for their initial referral.
Use Case and Example
Momomi is a well-known lifestyle business that gives new customers 10% off their first purchase if they use a referral link. A monetary reward of 5% of the purchase price is given to the referrer.
14. Simplify The Referral Process
Many e-commerce referral systems fail because of a lack of methodology. Making the procedure as simple as possible is the most excellent method to get people excited about your product. Many e-commerce businesses don’t know that their complicated referral procedure is to blame when it comes to referrals.
As a result, simplify your referral process so that consumers may suggest their friends more easily. To keep your customers, you must make sure that they may recommend their friends within the first two clicks; else, they will drop out of your program.
Use Case and Example
Take, for example, the cloud storage service Dropbox. To refer a friend, a customer must enter their friend’s email address and click “Send.” Then, his friend will receive a referral link.
15. Make It Easy For People to Locate Your Program
It’s not uncommon for online retailers to overlook the importance of promoting their customer referral program ideas. Customers are aware of the referral program, they believe. However, this is why so many referral systems are a failure: they are not well-publicized.
Your customers should know about your referral program as soon as it’s activated on your website. You may market your refer-a-friend campaign in a variety of ways.
Use Case and Example
For example, Bombas developed a referral program and introduced it to its members, which allowed them to take their campaign to a new level of promotion.
16. Consider Creating a Partnership or Affiliate Program
In contrast to a referral program, an affiliate or partner program provides incentives to other businesses and resellers to market your products. On the other hand, Partner programs allow for a more intimate exchange of information.
Your firm must establish a partnership with the partner company. Partner programs, like referral programs, provide rewards for referring other people. If you currently do business with other companies, partner programs are a great fit.
Use Case and Example
Take, for example, Amazon. Affiliates in Amazon’s Amazon Associates program can earn a 10% fee on sales they bring in by referring others to Amazon. A portion of every Amazon transaction will be paid out to authors who provide their customers with links to their books on the retailer’s platform.
17. Discounted Services
Discounted services are ideal for a business whose customers may want further services in the future. For hairdressers, it is one of the most effective referral program ideas.
Their customers will still require a new hairstyle. Customers are more likely to consider it a good bargain if they know they may save money by bringing a friend. You get new customers, increased sales, and essentially free advertising.
18. Free Goods and Services
Freebies are a massive hit with the public. When a consumer refers a friend or family member to your business, you may reward them with a free product or service. Small and large enterprises alike can benefit from this strategy.
You have to pick and choose the products and services you wish to offer your customers. Choose low-cost items and services that your customers will like. This will save your company money.
19. Encouraging Your Employees
Investing in your staff will pay huge dividends in the form of positive word-of-mouth advertising. They are knowledgeable about your products and services to the point of obsessiveness, and they use them every day. So why not build a special referral program just for them?
It is possible to run an employee referral program like a customer referral program, with a reward for every recommendation. Employees may earn a raffle entry for each new customer they bring in by participating in a monthly referral contest. Create a leaderboard to display all of your team’s successful sales and referrals.
Use Case and Example
Accenture’s employee referral program is one of the most innovative in the industry. The company’s recommendation program is geared toward potential employees. “Get Referred!” is a program that asks candidates to connect their social media accounts to the corporate website before they may join.
As a result of scanning their profile, their website compiles a list of current workers with whom they may be connected. The employee will subsequently act as a referral to the potential hire. When new employees are engaged from the beginning of the hiring process, it makes it easier for them to become productive members of the business.
20. Subscription Credit
Subscription credits are a popular way to reward customers for referring others. When you provide your consumer’s subscription credit, you don’t lose much.
For both you and your consumers, it’s a fantastic deal! It’s an excellent concept for a business-to-business referral scheme. This concept strengthens your clients’ loyalty to your brand. Repeat purchase is also more likely.
Use Case and Example
In the past, Uber has offered a few referral programs. Both drivers and passengers were pleased with the service they received from the company. In between journeys, drivers may earn money by introducing other drivers and riders to them. Riders may also earn free credits by referring their friends to use Uber.
Conclusion
The effectiveness of customer referral programs in promoting recurring business sales is undeniable. With these referral program ideas, we hope to inspire you to look into using referral software to develop or improve an existing customer referral program.