There’s no better advocate for your company than a happy customer. This is why referral programs are so successful. When existing clients or customers refer their friends and family, they’re telling them how much they value your product or service.
A referral program is a deliberate strategic way of getting customers to make referrals to your business. Referral programs often reward existing customers for sharing word-of-mouth and provide an incentive for new customers to try out your service. In turn, this helps to increase long term revenue whether for products or services.
As referred customers come in, it’s likely they will be more loyal customers. Referred customers have 16% higher lifetime value than those acquired by other methods. Plus, customers with high lifetime value are the lifeblood of any business. If you haven’t started an e-commerce referral program, you’re missing out on that potential growth.
As you’re getting started, there are many referral program strategies to consider. Not all are created equal. Consider what program will work best for your business and be the most valuable for your customers. For a breakdown of referral program types, strategies and helpful tips, check out the infographic by Valpak below.