Loyalty Tips: Increase referrals with 5 tips
Referrals are a great way for you to grow your business using your existing customer base.
We've analysed 100s of referral programs - here's 5 tips that will help you get the most from LoyaltyLion.
1. Make sure you give enough points for referrals
We know it can be worrying to hand out too many points. But trust us, we've seen it time and time again, giving more points bring more returns. The stronger the incentive for your customers to refer, the more customers you'll acquire. And don't forget those new customers may purchase more than once.
For example, if your average purchase size is $50 you'll want to give at least 1,000 points for a referral ($50 * 20% = $10 = 1,000 points, since a point is worth $0.01).
If your average lifetime value is $200 you've gained $200 revenue for less than $10!
2. Customise your referral tweet and email
Write the Tweet and email for your customers; save them time and increase the number of referrals. See how here.
3. Enable post purchase pop-up reminders for referrals
Now here's an impactful little feature. A simple contextual reminder that notifies the customer right after they make a purchase. See how to turn it on here.
4. Include a banner on your site to promote referrals
One of our merchants has figured out a great way to promote his LoyaltyLion program features. He simply added a big banner to his store front to make sure all his customers know. We think it's a great idea!
5. Reward both people - the customer referring and their friend
If you put yourself in the customer's position, what would you rather receive from a friend an email referring a store or an email referring the store with a discount just for you?
This is why 'give and get' referral programs are more successful. Here's an example from Uber one of the fastest growing companies in history. See how to use LoyaltyLion to do this - here.