Managing a referral program can be a time-consuming affair, but it is well worth the effort to attract new customers at a low cost. Research shows that the average conversion rate for referred customers is 13%. While this is already quite significant, you can get even better results by making the right choices in strategy and implementation. You probably monitor top referral marketing metrics like clicks per share and sharing rate already.
However, there is also a need to adopt the latest automation tools for the best results. This is the same approach that has worked for leading global brands such as Paypal, and AirB&B. E-commerce brands are adopting tried and tested practices to deliver a positive customer experience via their referral programs.
Marketing teams are currently under pressure to deliver results and buying new referral marketing software can be a tough sell. However, the results will likely speak for themselves. For example, you can scale your referral program much faster with the help of referral software than by using manual methods. You may never have to miss another referral again, thanks to real-time tracking enabled by marketing software.
Besides saving time and effort, referral marketing software will pay for itself by lowering cost per lead and cost per acquisition over a period of time. This makes them ideal for both small ecommerce businesses and larger ones. Equally important, the software allows you to customize your referral program based on reporting data.
Things to consider when choosing referral marketing software:
E-commerce is a dynamic industry with customer preferences changing often. In the context of referral programs, it is critical to keep customers engaged by offering new rewards options. For instance, offering flat discounts per referral. On the other hand, you may also need to adapt your communication strategy – landing pages, emails, or social media content – to nurture new leads and improve conversions.
For all these reasons, the referral software you choose must also be flexible enough to support different marketing needs. It must be easy to use, even for those who may not be technology savvy.
Once you have set clear marketing goals and identified a suitable structure for your referral program, you need to consider taking it to the next level. Referrals are notoriously hard to scale. You cannot be certain whether a customer will share your referral link with his friends and family. It can thus be difficult to reach a new audience by leveraging your current customer base. This is where your referral marketing tool can be of tremendous help.
Right from creating an offer to tracking clicks and conversions, it can help you scale referrals consistently and predictably.
3. Built-in reports and analytics:
Like any other piece of technology, referral marketing tools make the task of campaign management and tracking much easier. Some of them have a handy dashboard that displays selected KPIs like clicks, share rate, cost per lead, or conversion rate in real-time. Thus, it is a better alternative than using an Excel spreadsheet for tracking, which can lead to referrals being missed. You can even use the data from it to optimize your overall marketing strategy.
4. Customer service:
If you ever need help with setting up a campaign or assigning access permissions, your referral software provider must be easy to reach. The best tools will have built-in self-service options such as a knowledge base and live chat support. Check the service terms and conditions before you settle on software.
Top 3 Best Referral Marketing Chat Software
Now that we have discussed why referral marketing software is worth investing in, let’s take a quick look at some of the leading providers out there:
Friendbuy offers a comprehensive range of features including unlimited campaigns, analytics, rewards templates, rewards management, etc. It is also compatible with a variety of third-party integrations. Customers can choose between three pricing plans – Starter, Deluxe, and Enterprise.
However, the final cost will depend on the exact features you choose. Friendbuy is highly regarded for its ease of use, best-in-class features, and affordability.
Buyapowa has made a name for itself in the telecom and retail space, counting companies like Vodafone, T-Mobile, and the Gap among its customers. In addition to keeping track of referrals, it also lets you customize rewards to suit your brand.
In line with the latest trends, Buyapowa comes with gamification features and multi-channel rewards. What’s more, it also automates email and social media outreach for users. To help customers get the most out of their software, the company provides a knowledge base, email, chat, and phone-based support. Pricing details are not publicly available.
Viral Loops is an all-in-one referral marketing software that helps you create a seamless referral pipeline across your website, social media handles, and messaging apps like FB Messenger. Customers can sign up via Messenger and win rewards for referring their friends and family.
Viral Loops lets you track referrals and manage rewards automatically and is great for businesses just getting started with a referral program of their own. It has been adding several new features over the years.
After a free 14-day trial, you can choose from 3 price plans starting from $49 a month. Pricing is feature-based, so you may end up paying more or less depending on how many features you ultimately choose.
For your referral marketing program to reach its full potential, you need to build trust with your customers. While personalized offers can go a long way, lasting trust can only be built by delivering effective customer service. In the post-pandemic environment, it can be the best way to create differentiation. For e-commerce brands, 24X7 support can be an expensive proposition, at least in the short term.
This is where partnering with an experienced customer support provider like Helplama can be a cost-effective solution. Our plans can be customized to suit the needs of any industry or niche. What’s more, we do not believe in long-term contracts but in providing the best possible value to our customers. Our Zero-Risk Guarantee has you covered in case you choose to opt-out at any time. Contact us today for more information.