8 Best Ways to Get Customer Referrals in 2024

How to get customer referrals

Picture this: you’re on the hunt for the perfect outfit for a special occasion or may be trying to pick the best lunch spot for a date. Where do you go first? Chances are that you’d hit up your friends or family for recommendations, right? That’s the power of word of mouth, the secret to a successful business. And here comes the customer referral program– the real game-changer. 

We all want our customers to be so pumped up about our brand that they can’t help but tell everyone they know. In this blog post find out why customer referrals can make a huge difference in boosting your business. I’ve also got some easy strategies to get your customers talking about you everywhere. Ready to take your business to the next level? Keep reading!

 

What are Customer Referrals?

“Customer referrals involve existing customers recommending a product or service to their friends, family, or colleagues.”

Imagine this: You have found out a super cool online store and can’t stop telling your friends about it. That’s what we call customer referrals. It’s like passing on a great suggestion to your buddies, whether you’re chatting over lunch or posting on social media. And here’s the great part – when your friend makes her first purchase, you get a little treat from the store! It’s a way for happy customers to spread the good vibes and earn something sweet in return. Businesses make it even more exciting with rewards such as gift cards, special points for shopping, or cool branded stuff. 

 

Importance of Customer Referrals for Your Company

No matter where you are or what you sell, every sales team loves a good dose of regular and dependable sales referrals. These referrals aren’t just high-fives for your product—they’re the agents in the backend boosting your brand popularity, making you the go-to, and, of course, ramping up those sales! Here are some benefits!

  • Trust-Building Magic

People tend to believe and follow recommendations from folks they trust, for example, friends and family. So, when your friend says, “You’ve got to check out this place,” it’s not just a suggestion; it’s a powerful endorsement. Here your business is getting a thumbs-up from the trusted inner circle. Trust and credibility, all wrapped up in a neat referral package! 

  • Bring New Customers on a Budget

Let’s talk about some smart business moves! You want more people to know about your awesome designer wear. You could spend a bunch on ads and marketing, but guess what’s even cooler? Customer referrals! When happy customers shout about your business to their pals, it’s like a free ticket to new customers. No big ad bills, just good vibes spreading from one satisfied customer to another.  It’s efficient, cost-effective, and leaves you with a pocketful of savings! 

  • Spreading the Love with Positive Word-of-Mouth

Referrals play a big role in spreading good vibes about your business through word of mouth – one of the most powerful ways to promote your brand. When people share positive recommendations, it’s like a happy message that travels fast, building a great reputation for your business in the market.

  • Valuable Positive Reviews

Customer referrals are like getting gold-star ratings from your customers. You can use these gems in your ads and on various review sites. Think of them as superhero reviews that help future customers choose your company wisely!

  • Higher Customer Lifetime Value

Let’s dive into some cool facts! According to the Wharton School of Business, customers who come through referrals are the superheroes for your business—they stick around and bring in 16% more money over their lifetime compared to regular customers. 

Now, here’s the exciting part: bringing in new customers usually costs money, for ads or discounts. But when your referrals bring in more cash over time, they help your business save money in the long run. So, it’s not just about getting customers; it’s about having the ones who stick around and bring in the big bucks!

Customer Referral Benefits

 

How Does a Referral Program Work?

 

Let’s talk about the magic of successful referral programs! How does it work? Well, referral programs work great with the right blend of technology, awesome products, catchy messages, and, of course —great incentives! 

Let’s take a scenario: your business sets up this cool referral program using a nifty software tool. Your customers get a special code or link to share with their friends. Now, when their friend uses that code or link to buy something, your customer scores a sweet reward. It’s like a high-five for sharing the love! And the best part? The new customer can jump on the referral train and do the same with his folks. You can call it a chain reaction, creating this fantastic flow of new business—some call it a “viral loop.” 

How Does it Work

 

How to Get Customer Referrals: 8 Best Strategies

Getting customer referrals can be challenging, and it’s not as simple as just starting a referral program. While having a program is important, there’s more to getting high-quality referrals.

So, how to get customer referrals? In this article, we’ll explore the 8 best strategies to help you gather top-notch referrals and boost your campaign, going beyond the basics of just having a program in place.

1. Go Above and Beyond Expectations

Going the extra mile to exceed customer expectations is a smart move for business. When customers have a positive experience with a product or service, they often become enthusiastic advocates, sharing their satisfaction with friends and family. This word-of-mouth promotion can boost customer loyalty and engagement over time. 

Moreover, these happy customers essentially become walking advertisements, creating new opportunities for sales as they spread the word about their positive experiences. By consistently delivering excellent products and services, you not only benefit from loyal customers but also attract new ones through the powerful channel of customer referrals. It’s a win-win strategy that stems from making efforts to go beyond what customers anticipate.

2. Offer Excellent Customer Support

The key to a great referral program is providing awesome customer service. When your customers are happy with what they bought, they’re likely to tell their friends and spread the good vibes. The happier the customers, the more they stick around and bring in more folks to your business. It’s like a chain reaction of good feelings and recommendations!

Wondering how to give top-notch customer support? Make it easy for your customers to reach you anytime by providing real-time assistance through live chat or a chatbot. These tools allow you to help your customers instantly, 24/7. While there are various options out there, I highly recommend trying out REVE Chat. It’s an excellent AI-powered customer support software that provides instant assistance on your website, mobile app, and other popular social media platforms like Facebook, Viber, Telegram, Instagram, and WhatsApp. 

With REVE Chat, your support team can engage with customers before they even ask for help, thanks to its proactive approach. Beyond live chat, REVE Chat also features a smart chatbot that can automate your business operations, including customer service, offering round-the-clock support. So, Sign Up for its 14-day FREE TRIAL today!

3. Ask for Referrals

Now and then, the quickest route to getting what you want is just by asking. After a seamless transaction or a great review, don’t hesitate to casually check in with your customers. Politely pop the question – see if they know someone else who’d be thrilled with your fantastic offerings. A friendly ask can work wonders!

4. Deliver Outstanding Products and Services

The secret to keeping customers coming back and telling their friends about your business is delivering amazing products. It’s not just about selling stuff; it’s about believing in what you offer and making sure it’s something people appreciate. This means understanding what customers want, listening to what they have to say, and always finding ways to make their experience better. 

When customers know they can rely on your business for top-notch products, it builds trust. Meeting their expectations not only keeps them loyal but also turns them into your biggest fans, recommending your products to others. When your customers become your ambassadors, you know your company’s reputation is getting stronger in their eyes. 

5. Initiate Customer Referral Programs

Launching a rewards program for customer referrals is a fantastic way to make customers stick around and get them talking about your business to others. By giving incentives for customers to share their good experiences with friends and family, you’re not just getting word-of-mouth advertising, but you’re turning your customers into your own sales team. It’s a smart and budget-friendly way to market your brand. 

These programs not only keep customers engaged but also make them feel appreciated for spreading the word. When done right, these reward-based referral programs can be a big win for businesses, bringing in new customers and keeping the existing ones happy.

6. Provide Valuable and Meaningful Content

Crafting content opens up exciting opportunities across various channels. You never know who might be exploring what you bring to the table. Sharing advice or creating content related to your expertise not only makes you more discoverable but also helps you solidify your presence in the industry.

For clients in the same industry, consider writing about industry trends, creating blog posts, hosting Q&A sessions for new businesses, or even inviting referrals to join a free webinar. It’s a fantastic way to showcase your knowledge and connect with your audience.

7. Take Action Based on Positive Feedback

Getting positive feedback from customers is fantastic, but it’s also important to go a step further and act on their referrals too. Customer feedback is like a high-five, and when you respond promptly and effectively, it shows them they made a smart choice by choosing your business.

Putting in the extra effort with customer referrals not only builds loyalty but also demonstrates that you value their opinions. Plus, it gives them a reason to shout about how awesome your business is. Working on both customer feedback and referrals creates a win-win situation for both businesses and their customers.

8. Spread the Love on Social Media

Don’t forget the social media platforms! Urge your customers to spread the love by sharing their happy experiences on platforms like Facebook, Instagram, or Twitter. Make it super easy for them by creating cool content or using catchy hashtags that let them shout out their excitement for your brand. Let the good vibes go viral! 

 

How to Track Customer Referrals- Calculate Referral Rate

Imagine you have a favorite ice cream shop. Every time you tell your friends about this amazing place, and they go there to buy ice cream, it’s like a referral. Now, the referral rate is like a score that tells you how many people bought ice cream because of your recommendation compared to everyone who bought ice cream from that shop.

The Referral Rate Formula

So, if 10 people bought ice cream because you told them about it, and the total number of ice cream purchases is 100, your referral rate would be 10%. It’s like saying, “Out of all the ice creams sold, 10% happened because of my recommendations.”

Wondering if your referral rate is doing well? A referral rate is like a scorecard for how many people buy something because someone recommended it. In most businesses, having 2% of purchases coming from referrals is seen as good.

If your rate is not there yet, don’t worry! You can follow the steps mentioned earlier to boost your referral rate. It’s like giving your recommendation game a little upgrade!

 

How to Create a Customer Referral Program?

Starting a customer referral program might seem like a big job, but don’t worry! Just take it one step at a time, and it won’t feel as hard. Here’s how you can do it:

1. Key Performance Indicators (KPIs) and objectives

Decide what success looks like for your referral program. It could be more sales, more customers, signups, or something else. These are your goals, like checkpoints to make sure you’re on the right track.

2. Determine the Motivations Like Rewards or Incentives

This idea revolves around setting up an effective referral program to attract new customers. Before implementing it, you need to choose enticing rewards that encourage your existing customers to recommend your business. Conduct thorough research to understand your customers’ preferences, ensuring that the selected rewards align with their interests. However, it’s crucial to stay within your budget to avoid financial setbacks.

If you have budget constraints, consider using surplus items from your inventory as rewards for the referral program. This way, you can still launch a successful program without exceeding your financial limits.

Here are some creative and engaging reward ideas for you:

  • Special discounts for Referrals
  • Referral points or rewards 
  • Tiered rewards
  • Flash contests with time-limited rewards
  • Sneak peeks or early access
  • Discount bundles
  • Credits for referral subscriptions

3. Select the Right Tools to Manage the Whole Thing

Elevate your referral game with the right tools! Choose platforms or referral program software that turn your referral management into a breeze—tracking referrals, juggling rewards, and checking out the analytics. Think of user-friendly tools that not only make your life easier but also sprinkle some joy on your customers.

Here are some great referral management software recommendations for you!

  • Buyapowa
  • GrowSurf
  • Viral Loops
  • InviteReferrals
  • Ambassador

4. Give a Nice Look to Your referral Program and Landing Page

Whip up a customer referral program that’s a piece of cake to understand and explore! Picture this: a sleek landing page that spills the beans on program details, perks, and how your customers can dive right in. We’re talking about simple language and eye-catching visuals, making it a breeze for everyone.

Some Useful Tips

  • Craft an attractive and informative landing page that highlights the benefits of your referral program. Use compelling visuals and simple language to make it engaging.
  • Tailor your messages to resonate with your audience. Use personalized communication to make customers feel valued and understood.
  • Consider adding a time-sensitive element to your referral program. This could be a limited-time offer or exclusive rewards for early participants, encouraging quicker action.
  • Clearly outline the rewards they can earn through successful referrals.

5. Lastly Promote the Customer Referral Program

Now you need to promote it. Generally, there are different forms and formats when it comes to promoting your referral program. Many big companies have implemented various unique strategies to woo their customers to refer others. 

Once you are all set with your referral program, you can promote it to all the popular platforms such as:

  • Your website
  • Social media platforms
  • Email
  • Customer support

 

Some Real-Life Customer Referral Program Examples

SaaSquatch found that customers who were referred are more loyal (18% more), have a higher lifetime value (16% more), and spend more (13% more) compared to those who were not referred.

Now are you ready for some inspiration? Here are some standout examples that are rocking the customer referral game. So let’s look into the clever tactics and ideas these brands are using to get customers buzzing about them.

1. Harry’s

Harry’s is a cool brand selling grooming and shaving stuff for guys.

What’s their customer referral program?

If you tell friends about Harry’s and they sign up using your link, you get free products. Even before they officially started, people gave their email on Harry’s website. Then, they got a special link to share. On a second page, there were buttons to easily share the link on Facebook or Twitter. The more friends who signed up with your link, the better the free stuff you could get.

Harrys

2. Omsom

Omsom, a brand that brings tasty Asian dishes to your home with easy-to-use starter packets, has a referral program that adds some flavor to the mix.

In their referral program, they keep it simple with the tagline “GIVE $10, GET $10.” Here’s the deal: When you refer a friend, you get $10 off on your next order from them, and if your friend orders he also gets the same off on his first order of $50 or more! The vibrant colors on the program page match the brand’s style and grab the customer’s attention. Pretty cool, right?

Omsom

3. T-Mobile

T-Mobile, the famous wireless carrier boasting the “first and largest nationwide 5G network,” has a cool Refer-a-Friend program.

Here’s the scoop: Recommend T-Mobile to a friend, and they can snag the awesome perks you already enjoy. Plus, they’ll save big, and you’ll pocket $50 for each friend who hops on board, up to $500 a year. 

T-mobile

 

 Customer Referrals: Some Useful Stats

  • The likelihood of brand followers on Facebook recommending the brands to others is 85%. (Syncapse) 
  • A single satisfied customer has the potential to generate nine referrals. (Source: Oberlo) 
  •  Referral leads exhibit a conversion rate that is 30% higher. (Source: Finances Online) 
  • The sales effectiveness of B2B companies gets doubled when they have referral programs. (Source: Statista) 
  • Customers referred by other customers have a retention rate that is 37% higher. (Source: Deloitte)

 

Wrapping Up!

Wondering how to boost referrals? Well, it’s all about earning them. When someone recommends your business, it’s like vouching for you, using his social influence.

The key to getting more referrals? Embrace a customer-focused mindset. Every step in your strategy enhances the customer experience. If you prioritize treating your customers the way they want to be treated, they will also become your brand advocates in return. 

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Suvashree Bhattacharya
Author’s Bio

Suvashree Bhattacharya is a researcher, blogger, and author in the domain of customer experience, omnichannel communication, and conversational AI. Serving as a content marketing strategist at REVE Chat, she develops contextual and interesting content for customers from different industries and segments like customer service, customer satisfaction, engagement, messaging platforms, etc. Passionate about writing and designing, she pours her heart out in writeups that are detailed, interesting, engaging, and more importantly cater to the requirements of the targeted audience. Her interests include reading, painting, and traveling.

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