Referral marketing compensates for the disadvantages of the referral gap by considering not only Customer Acquisition Cost (CAC) but also Lifetime Value (LTV) and retention of new customers.
Clarify the purpose of running the program. Think about whether you want to achieve brand awareness, lower CAC, emphasize urgency, increase social proof, or increase sales.
The referral program works great for both new and established brands. This is because there is a network effect that connects the marketing activities that you are already doing. Existing customers serve as a link to share their experiences with thousands of potential customers similar to them. It is a structure in which potential customers with similar inclinations start to use your product and become new customers by recommending them to others.
DeJi Marketing's referral optimization strategy is as follows.
Understanding what the desired outcome is
New brands in their early stages have limited reach due to the small size of their existing customers.
Therefore, it will be difficult to invite a large audience. With your referral program, you need to be clear about the results you want to achieve.
Understanding the existing friend invitation path
Before investing resources in building your program, analyze how your current customers share information about your brand and products.
Provide a product/service experience you would like to recommend
A referral program will never succeed if people don't even care about your brand. You need to provide a satisfying product/service experience that customers want to share.
Designing irresistible incentives
You need to offer incentives that are far more valuable than the time and effort your customers spend inviting them. Design incentives that best fit your business goals and models.
Promote your invitation program
You need to create content to showcase your various marketing tools and products/services so that your customers can do their job. It's about minimizing effort and at the same time using a consistent brand message. It should be set up so that you can easily send messages through various channels (email, Twitter, Instagram, text message, etc.) with a single click.
Marketing that generates revenue in the process of trading with referrals
It's not that you buy from these people, but the fact that they make money through you will advertise you, recommend you and encourage their acquaintances to buy.