Service & Phase: Grow
Grow Phase Chapter 8: Sales Accelerator
Deliverable: Referral Engagement Programs
Word-of-mouth referrals are worth their weight in gold for a simple reason: Nothing works like a recommendation from someone you trust. Let’s say you love the pizza from a place near your house. So much so, you bring a friend in who also appreciates a good slice. Add in a few more visits and a handful more recommendations, and maybe the owner will give you a discount or perk for spreading the word. That’s essentially a referral engagement program. Rewarding your customers for not only being a return customer but also bringing in their friends.
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Referral Engagement Programs + Your Customers = Growth Gold
Did you know?
- Friends make the best referrers: 92% of consumers trust referrals from people they know.
- Customers are 4X more likely to buy when referred by a friend.
- There’s a 37% higher customer retention rate for referred customers than for those acquired through other channels.
- Referred customers can generate 16% to 25% more profit than non-referred customers.
- 77% of satisfied customers are willing to recommend a business to a friend after a good experience.
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Key Outcomes from Referral Engagement Programs
Developing a client referral program drives new business for less of an investment:
Get More Customers for Less
Tapping into the influence of your existing customer base allows you to attract new customers at a lower cost than other channels. Because word-of-mouth referrals are much more likely to convert than typical ads, and your efforts are much more targeted, you get a lot more bang for your buck.
Find Longtime (Loyal) Business
The numbers don’t lie. Referred customers convert 30% more often and maintain loyalty 37% longer than those attained through other, more traditional marketing channels. These friends of customers also have a much stronger brand loyalty in a shorter amount of time.
Experience the Referral Ripple
Growth doesn’t stop with the first referred friend. Customers who find your business through word-of-mouth are 31-57% more likely to tell another friend, who is likely to tell another. Your initial investment grows organically into a chain of new customers who can’t wait to tell their friends about you.
Why are Customer Engagement Programs important?
Word-of-mouth referrals are one of the top three ways people discover new businesses, with 30% of consumers citing recommendations as the way they learn about brands. Developing your referral program provides:
- Enhanced Customer Loyalty (And Spend): When you reward your customers for referring a friend, you’re not only increasing brand loyalty, but you’re also encouraging repeat purchases.
- Increased Trust and Higher Conversion Rates: People are much more likely to trust recommendations from friends and family than through more traditional advertising, translating directly into higher conversion rates for these new friends of customers.
- Low-Cost Customer Acquisition: Finding new customers through referrals costs less than other traditional marketing channels (think paid ads), leveraging your current customers and freeing up your budget for other essentials.
- Enhanced Authenticity and Awareness: When customers make referrals, they’re actively spreading positive word-of-mouth about your business. This fosters authentic brand awareness and cultivates a community of advocates who genuinely love what you do.
- Finding YOUR Customers: No one knows your customers better than your existing customers. When they refer your product or service to someone, they are more likely to refer people who are genuinely a great fit for it.
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Customer & client referral programs are part of our growth proven process
Service & Phase: Grow
Grow Phase Chapter 7: Ads Accelerator
Deliverable: Customer and Client Referral Programs
Client referral programs are a powerful part of our Grow services. When developing your branded program, our team creates a streamlined system that not only rewards your customers but also fuels new business growth without huge marketing budgets.
01 | Referral Engagement Programs Purpose
Developing a referral engagement program helps find new, longtime customers and increases revenue for your business. Our team builds a strategic program for you that rewards both existing and new customers, and ultimately, your business.
Key outcomes:
- Increase in customers
- Reduced costs of acquiring those customers
- More repeat purchases and spend over the customers’ lifetime
- Improved customer retention and increased loyalty
- Organic, authentic growth and reach
- Enhance brand advocacy
02 | Referral Engagement Programs Process
The Big Red Jelly team builds out a customized referral engagement program that helps you get more customers without breaking your marketing budget. This program is designed so that when your referring customer gets their referral reward, their business is earned again, as well as the new business of your referred customer. Trust is built with both customers, and the cycle of happy, rewarded customers continues.
Create & Grow:
- Develop the referral outreach materials
- Set your program goals
- Choose your customers’ rewards
- Promote your program through the right channels
- Track your program
- Review and adjust for improvement
03 | Referral Engagement Programs Application
Once your referral program is up and running, you’re on the referral road to growth: building trust, attracting new customers for less investment, and, finally, increasing revenue.
It’s a critical part in building momentum for your marketing flywheel and here at Big Red Jelly we apply the growth and marketing flywheel strategy over the out-dates “sales funnel”. Build more brand loyalty, increase word-of-mouth referrals and grow your business organically with an effective referral engagement program for your customers and clients.
Referral Engagement Programs are a powerful investment for your business
New, loyal customers are one “you have to try this place” away. Implementing a referral engagement program rewards you and your customers:
Build Your Program
We create a referral program that creates a cycle of happy customers bringing in new business, and increasing revenue, without ramping up your marketing budget (or your efforts).
Create Customers
The best referral programs attract valuable customers who convert more often and spend more. They also tend to be loyal for longer periods of time. It’s a win-win-win-win.
Brand Fans
When you reward customers for sharing their experiences, you’re showing that you appreciate their continued loyalty, building authentic brand awareness, and encouraging them to continue to advocate for your business.
86
Businesses with referral programs experienced 86% more revenue growth over two years.
70
Of brands with referral programs, 70% report higher conversion rates.
54
Referred customers are 54% more likely to make repeat purchases and spend 25% more.
People are Raving About Our Referral Engagement Programs Team
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Meet your Referral Engagement Program experts
The Big Red Jelly team uses their expertise in sales acceleration services, including referral engagement programs, to help your business grow. Our team is ready to build a program that strategically rewards your customers, brings in new business, generates more revenue, and continuously fuels the growth of your business.
Meet the Team
Why choose the Big Red Jelly team for your Referral Engagement Program needs?
If you’ve been looking for a partner to help accelerate sales and drive growth, the Grow team at Big Red Jelly is ready to help. Our expertise runs deep when it comes to growth marketing tools, including client referral programs. Our U.S.-based team uses award-winning strategies and deep expertise to quickly get your program to attract new customers, boost your business, and create loyal brand ambassadors.
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5 FAQs About Referral Engagement Programs
What are the benefits of referral programs?
Referral engagement programs incentivize your existing customer base to recommend your business, which grows your customer base, increases engagement, drives purchases, and fosters brand loyalty.
What kind of rewards should be offered in referral engagement programs?
Your rewards should be based on your customers’ likes and feel like a natural extension of your brand. Common options include: gift cards, discounts, credits or loyalty points, and free products or services.
What’s the best way to promote my referral program so that my customers know about it?
Promote your program strategically by displaying it on your website or app, within your email marketing and social media posts, and during customer service interactions.
How long does it take to see results from my referral engagement program?
Seeing substantial results typically takes about three to six months. This allows for promotion, for your customers to become aware of your program, and for data collection.
What are some metrics to track to measure the success of my referral program?
Some key metrics you can track include: referral conversion rate (like purchases or sign-ups), number of participants, the churn rate of your referred customers, and the overall return on your investment in your program.
New, loyal customers are ready to hear about you. Contact our Referral Engagement Program experts today.
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