We all know that the ultimate goal of a referral program is to get referrals. It seems self-explanatory. However, while that is an extremely important metric, it’s not the only one. Having the ability to “take the pulse” of how your program is growing as well as being able to segment your audience to maximize your program’s success are equally as important.
In this blog, we’re going to walk you through why enrollment in your referral program matters and how you can quickly see success with growing your program enrollment.
Why enrollment in a referral program matters
Typically, most businesses would say that they take great care of their customers. And oftentimes, that may be true. However, you never really know until you test that hypothesis. One way to do this is to simplify the number of variables you are testing.
In the case of your existing customers, when you send out your first email touting your new referral program, rather than making multiple asks (sign up, refer people, share on social media, email your family), you can simplify the ask and get a good idea of how loyal and satisfied your customers are by simply asking them to enroll.
As with any marketing exercise, less is more and simpler trumps more complex. Be authentic and simply ask if they would be willing to join your referral program to earn exclusive incentives and to give their friends and family discounts.
Once you’ve gotten the responses from your audience, you’ll have a good idea of what percentage are interested in actively referring people to your business.
In addition to garnering the information related to how many customers are satisfied and interested in your business, this quick enrollment ask allows you to them segment out your most likely advocates from the rest of your current or previous customers. This allows you to further specialize your messaging based on their interest.
Have you ever gotten an email from a company that you perhaps had a bad experience with asking you to send them a referral or leave them a positive review on Google? Doesn’t that seem tone-deaf? Again, by figuring out more about who is who in your database of customers, you can then approach the interested parties with a message related to giving their friends a discount. You can also offer up exclusive products or services that they may be interested in without hitting anyone that might not be completely satisfied with your company.
The remainder of the people who didn’t sign up are equally as valuable as you can now message to them asking about if they were satisfied with their last interaction with your business. Again, be authentic and tell them that if they didn’t, you want to know so you can help resolve any issues. Often times, these people who didn’t have a good experience, but raise their hand to tell you so, can be converted into loyalists who will sing your praises because you resolved the issue and went above and beyond to make sure they were happy!
Overall program success
People how are referred by a previous customers 18% more loyal than people who randomly stumble across your business. Not only does it make it easier for you to make the sale and to retain them as long term customers, but it ensures that your business continues to grow with minimal monetary investment.
If you talk to any sales person, they will tell you that a warm referral is worth 100 times what a cold call is. So, simplify your ask, get people interested, and then message appropriately based on what you learn about your customers and you’ll have a ton of success in your referral program!
Want help talking through your referral work flow? Want to learn more about how WarmUp can help you track, manage, and fulfill your referral program? Pick a time on our calendar and we’d love to chat!