People are four times more likely to buy a product or service when referred by a friend. Seventy-seven percent of consumers are more likely to buy a new product when learning about it from friends or family. According to ReferralRock, 92% of consumers trust referrals from people they know.
You have likely heard these stats, and many others, proving the efficacy of referral marketing. But, behind these impressive data points is one critical component: referral marketing software. Without a platform that manages referrals and tracks customer retention, these stats are simply unachievable.
Referral management software can help your team test different campaign strategies, automate referral link tracking, and maximize the ROI of your referral campaign to save you time and money. According to Referral Factory, the top benefits of using referral software include ease of use, customization options, automated tracking and reporting, easy reward management, integration capabilities, data security, and excellent customer support. Here are five key reasons why referral management software is a good investment:
Referral Software Automates Key Processes to Boost Efficiency
When referral marketing first started, it was manual processes like punch cards and spreadsheets that helped businesses track referrals and loyalty programs. According to Demand Curve, the amount of manual labor required to identify top referrers, validate referrals, and allocate rewards made referral marketing challenging and often untenable for startups and smaller companies with limited resources.
Referral management software automates many of these elements to make it easy for teams to set up campaigns efficiently. GrowSurf’s automagic form detection works with any form you already have on your website to automatically add new participants and track referrals. Referral marketing software will automate emails for you to promote your campaign, give new participants their unique referral link, notify winners, and send monthly reminders.
Automation built into platforms like GrowSurf also takes care of running a referral campaign, from email link tracking to reward fulfillment. These tools automatically issue rewards to participants who reach referral goals through integrations with Webhooks, Zapier, or Tango Card. As customer retention software, referral marketing platforms also provide a dashboard of each participant’s activities: when they signed up, how they shared, who they referred, and more. Your team can quickly identify top performers and those who may be leaving your program soon.
Reach more people and channels to scale your program
When you first start out with referral marketing, tracking things manually seems manageable. But, what happens when you grow to hundreds – or even thousands – of customers? It’s no longer feasible to track referrals by hand.
Referral management software also helps you scale your program quickly by automating key processes. According to Referral Factory, "Tools like the Meltwater consumer intelligence suite help you understand how to best incentivize your clients. By using a referral software tool to build your referral program, it means all the technical elements are taken care of. It allows you to focus on the marketing elements that you know best, including mechanics, branding, messaging, promotion, and more."
Spread the word about your referral program with a dedicated landing page optimized for conversions, and seamlessly integrate your referral campaign onto other parts of your site with embeddable, one-line-of-code, plug-and-play elements. As noted by Demand Curve, "Referral software helps you reach more people on more channels with just a few clicks by providing frictionless sharing options, pre-written messaging that reduces customer effort, and tools to promote across email, web, social media, and other channels."
Collect Data to Optimize Your Referral Program Continuously
The primary goals for most referral marketing campaigns are to increase sales, brand awareness, and customer retention. However, according to Demand Curve, "a side benefit to referral marketing campaigns is the ability to learn more about your customers' preferences, behaviors, and what motivates them. This valuable customer insight can only be realized through robust data tracking and reporting capabilities in referral marketing software."
According to Referral Factory, "As with all things in marketing, tracking is essential. Great marketers know the sources of their best leads, and they allocate more time and resources to the channels that deliver the highest ROI (Return On Investment). These are the eight most important steps you need to follow if you want to create an effective customer referral program." The insights from referral software analytics allow you to "identify, target, and reward your most valuable customers through in-depth data analysis," which can inform optimization of your entire marketing strategy.
GrowSurf’s premium-level analytics show you campaign performance, conversion rates, and channel performance to understand the effectiveness of your referral campaign. Adjust your strategy as you go and avoid spending on a strategy that isn’t delivering results. Combine insights from your campaign with data from your sales team and transaction data to get deeper insight into your customers.
Test Different Incentives to Optimize Referral Motivation
There are many ways to reward your customers for promoting your brand to their network. Referral software offers the ability to test different incentives, as well as different ways to structure your rewards, to see what works best. Not only can referral management software integrate with third-party vendors to automate rewards, it can also help you pinpoint an incentive that your participants will respond to. GrowSurf even lets you review and approve rewards, so you can verify for yourself when a participant reaches a referral goal and release the reward in one click.
Reduce the risk of fraud
Some start-ups shy away from referral marketing for fear that bad actors will simply take advantage of their rewards – without taking action to support the brand. With any successful referral program, fraud is inevitable, but referral management software like GrowSurf comes with a comprehensive anti-fraud system that flags suspicious participants and lets you block or disqualify them.
GrowSurf can also notify you when referrals happen and new participants join your campaign. Referral software can also let you review rewards before they are designated.
GrowSurf comes equipped with other anti-fraud solutions: blacklisting/whitelisting, bulk fraud deletion, fraud tracing, and reCAPTCHA.
To learn more about what referral marketing software can do for you, sign up for a free product demo.
