Dec 28, 2022
What Are The Best Incentives for Referral Programs?
Referral programs are effective ways to increase customer loyalty and attract new customers. According to Forbes, referrals are the most valuable form of marketing. They can bring in better quality customers and help establish an outstanding reputation for your business.
Referral programs always come in with incentives. Incentives must be well thought out for a referral program to succeed. Businesses can offer many rewards to customers who refer their friends and family, ranging from discounts and free products to cash payments or bonus points.
The most important thing for a referral program is ensuring the rewards are attractive enough for customers to share with others.
9 Best Incentives for Referral Programs
Attractive rewards are vital to making referral programs work. Here are some of the most widespread incentives for referral programs:
1. Monetary Rewards
Monetary rewards are some of the most widespread incentives for referral programs. For example, you can offer a cash bonus for each successful referral. You can give a one-time bonus or offer ongoing rewards!
At Virtudesk, when a client refers a colleague, $150 is credited to their account and will serve as a discount for the next billing. The more referrals a customer can bring, the more cash bonus they will receive!
The monetary incentive is excellent for both the client, who gets a cash bonus for the next billing cycle, and for Virtudesk, who can expect higher sales.
2. Gift Cards & Store Credit
Gift cards and store credit are also popular incentives for referral programs. They allow customers to shop for items in your online or physical stores with their bonus. This is an excellent way to reward customers, encouraging them to shop more!
3. Discount or Coupon Codes
Discounts can be percentage-based or based on a fixed amount. When you have made a successful referral, you can have a 25% or even 50% discount on the products you wish to have within the business. Businesses can also send coupon codes as incentives, which customers can redeem every time they purchase.
4. Free Products and Services
Another excellent incentive for referral programs is offering free products and services. This could be a bonus item or an upgraded version of the product they purchased. You can also provide a complimentary service that gives customers a better experience.
Jasper AI, a writing software, gives 10,000 free credits to both the referrer and referred user when both use a paid service. The credits do not expire but can accumulate as the user refers more to the service.
5. Exclusive Access or VIP Experiences
Referral programs can also offer exclusive access or VIP experiences for customers who refer others. These can be anything from private shopping nights to discounts on additional products.
VIP experiences include movie premieres, special shopping events, private sales, and more. On the other hand, exclusive access can consist of new products or services, first-hand information about upcoming events, and invitations to special occasions.
6. Charitable Donation Matching
Charitable donation matching programs are another great way to reward customers for referring new people to your business. This incentive encourages customers to give back while rewarding them for their referrals.
The charity of the customer’s choice will receive a portion of the profits from the referrals they make. This creates a win-win situation for both the customer and the charity. Customers will be encouraged to refer more people, creating more sales and helping out a worthy cause.
7. Early Access to New Releases
Early access to new products or services is a great way to reward loyal customers. This can help you build excitement and anticipation for upcoming releases while giving those who refer more people the chance to be among the first ones to experience the product or service.
8. Recognition & Public Acknowledgement
People have the innate desire to feel proud when recognized. One way to reward customers for referring people is by publicly recognizing their efforts. You can do this with shout-outs on your website, blog posts, or social media pages.
You can also have a leaderboard that showcases the referrers who brought in the most referrals and give them recognition with exclusive awards or certificates. Public acknowledgment is a great way to show customers that their efforts are appreciated.
9. Special Offers & Rewards Points
Another incentive you can give is a special offer or reward points. Referrers can use rewards points to get discounts on future purchases or upgrades of the preferred product.
For example, Sephora referrers will receive 100 Beauty Pass Points for every successful referral. A successful referral is defined as a first online purchase made on their website or the Sephora mobile app by a person (“Referred Friend”) using a unique promo code shared by the Sephora Star (“Referrer”).
The Benefits of Referral Programs
In a recent article by Virtudesk, we discussed the benefits of referral programs and how they can help attract and retain customers. Referral programs are a great way to drive growth for your business by leveraging the power of word-of-mouth marketing.
Any referral program's success depends on understanding your customers' needs and crafting incentives that reward them for their loyalty and referrals. By offering attractive incentives, referral programs can help you acquire more customers and boost your business’s growth.
Referral programs can be monitored and executed by virtual assistants. Many companies are now relying on virtual assistants to manage their referral programs, as these professionals help companies succeed.
If you want to know more about how Virtual Assistants from Virtudesk can help you scale your business, please fill out this form, and one of our Consultants will get in touch.
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