12 Tips for Creating a Winning Customer Referral Program

If your customer base consists of millennials, you’ll need to offer them different incentives for customer referrals than if you usually work with boomers. While there’s certainly some overlap between rewards that would appeal to both groups, it’s essential to keep your core group in mind when designing your program. But don’t just think about the bonuses themselves; think about how different types of customers might prefer to accrue points differently or interact with the program in varying ways.

Without offering sufficiently attractive incentives, you may be hard-pressed to find customers willing to participate. Rewards for referring friends and family must be exciting and valuable enough that members are happy to jump on board. Consider offering discounts, exclusive access to certain features or products, or even cash back.

Don’t bog down your rewards program with complex rules and complicated qualifications. Keep everything simple and straightforward to make it easy to participate.  Clearly explain how the referral program works, what rewards are available, and how they are earned and redeemed.

Both startups and seasoned businesses know that timing is everything when implementing new programs. You may want a customer to know you have a rewards program, but asking too soon can be a turn-off for many. The key is to take the time to develop a relationship. New customers should be comfortable and confident in your company and your product before you promote a referral program.

One of the best ways to pick up new members for referral programs is to cast a wide net. Don’t just include a page on your website. Instead, reach out via email, post on social media, and even display in-app messages or notifications if you have one. Reaching people where they are is critical to ensuring robust participation.

No one wants to feel like a generic customer or a line in a spreadsheet somewhere. Personalize messages with the customer’s name or other information and provide a unique code they can share. This personal touch increases the chances they’ll engage with your program and send people your way.

Remember the old saying about insanity? If you’re doing the same thing repeatedly, like sending emails or text messages and getting little response, it’s unrealistic to expect different results in the future. But it’s challenging to make these calls without a detailed plan to track how the program is going. Use automated tracking mechanisms through email services, your website, and social media to measure which parts of your referral program are working and which need help.

If you ask for a review or a referral, make it easy to complete. Include a direct link with just a few boxes to fill in. Don’t forget to add social sharing buttons that can help autocomplete a post with just a few clicks.

Customers should immediately receive acknowledgment and thanks when they complete a referral. Additionally, if the referral is part of a points system for rewards, their total should be updated promptly. Speedy rewards encourage continued participation.

Limited-time offers, double bonuses, and special perks can create a sense of urgency that increases referrals. Use this strategy judiciously, as constantly offering these kinds of perks can make them feel less urgent.

Nothing stops a referral in its tracks like a technical glitch. If your online form or app keeps crashing or your posted links fail, having handy customer support through a chatbot or quick email makes it more likely your customer will complete the referral instead of navigating away.

If you’ve tracked your referral program and noticed it’s not getting much participation, ask customers why. Options like an online survey make it easier than ever. Continuously seeking feedback from both customers who refer and those who do not can help you refine your program. Maybe you need better rewards, or maybe the process takes too long. Ask for opinions and stay open to making changes.