A common mistake referral programs make is not having the right reward for their users. It’s a question we encounter all the time – How do I increase incentive in my referral program. Well, in this section we go over some tactics that can increase the incentive to up the engagement with the program.
Hi, welcome to another session on customer referral programs. Today we’re going to look at how you increase the incentive of your customer referral program. Like we mentioned a little earlier, we run into this all the time – how do I increase the incentive in my referral program. Well, what we’re not really going to talk about is actually how we change the prize. If you haven’t learned how to pick what prize is best for your referral program, I’d suggest you go back and look at one of our earlier videos on exactly how to do that. If we assume the prize is fixed and good, there’s still lots of ways that we can increase the incentive to optimize your referral program.
The very first one, is simply just to make your message clear, and actually speak to the end user. If you imagine that your prize, your reward, is a 10% discount, then we want to think about why the customer would want to care about that. We want to make sure that we communicate the referral program message clearly with that incentive in it.
Example of Simple Messaging
In this example, we make it very clear, save 10%. If we’re assuming this is a price conscious customer, and the incentive is that they’re actually going to save 10%, we just want to make that clear. We don’t want to hide behind refer a friend, because that doesn’t speak to my motivation, I don’t want to refer a friend, I want to save 10%, I want to get some credit, I want to get some swag, and by just simply speaking to what drives me, we boost the incentive.
One of the other things we can do, that is really powerful, and if you’ve studied sales or marketing, you’ve probably heard of it before, is social proof. If we can show to the customer how many of their friends they’ve successfully referred already, what we see then is it’s a bit of an intrinsic incentive, this customer is being rewarded by knowing they’ve actually helped their friends, and if we remind them of that, it’s a bit of an incentive to keep going. Now the other thing though, that I want to touch on, is let’s not confuse a simple message with a bit of a longer message. This whole idea here, is social proof, but the incentive can be how they’re going to help their friends they haven’t helped yet, so this is saving our friends 10% as well, it’s important to communicate those types of things.
The very last thing is to remember, once again remember it’s not about I want to refer a friend, it’s not that i want to send a referral at the very end of my referral program, we want to event think about how we increase the incentive for them to push that final button. Again, appeal to their inner needs or inner desires, and in this case, it’s start saving, it might be start helping friends, whatever it is to motivate your customers to get this referral done. That wraps up how to optimize your referral program through increasing incentives.