While content marketing and social media marketing are discussed and debated regularly, referral marketing is often neglected.
This is an HypeSprout Review we put together to remedy that.
Learn about what referral marketing is, how it works, why it’s so effective, and why we think you ought to seriously consider incorporating it into your own marketing efforts.
Why Is Referral Marketing Awesome?
We’re wired to understand referrals.
I mean, think about it. If you had a good experience using a product or service, wouldn’t you want to share it with all your friends?
If FedEx had taken the extra effort to ship your wedding dress overnight so you wouldn’t miss your own wedding…
Would you tell everyone about it?
I bet you would.
We naturally share our experiences with our friends. It’s part of our conversations. We talk about it.
It’s a win-win-win for all of us. We make referrals because everyone wins.
But there is a sad, unfortunate truth buried somewhere here.
And that is:
Your customers aren’t telling their friends about you. 83% of satisfied customers are willing to refer products and services… but only 29% actually do.
They love you, but they aren’t telling their friends about you.
There are many reasons, chiefly because they are busy and forgetful. They want to tell their friends about you and your product, but life gets in the way, and it slips from their mind.
What is Referral Marketing?
While it is disappointing to realize that your best customers aren’t telling their friends about you, you can do something about it.
Good marketers and entrepreneurs don’t leave things to chance. Good marketing, incidentally, is about deliberately influencing the process.
And that’s where Bing Bang Profits Review comes in.
Referral marketing is deliberately encouraging your customers to tell their friends about you.
Is It Worth The Effort Though?
Or is it better to focus on “proven” channels like SEO, Facebook Ads and content marketing?
Well, statistics suggest that, yes, it is worth the effort.
Here’s a few that would make your eyes pop:
- People pay 2X more attention to recommendations from friends.
- 92% of consumers trust recommendations from people they know.
- Referred customers are less likely to leave, making them more loyal to your brand.
- Referred customers bring you higher profit margins (as high as 25%!)
Referral marketing is the secret weapon behind the growth of some of the big-name brands today. Shopify says:
“Word of mouth is our best form of advertising.”
So, yes, referral marketing works.
It helps you attract customers who are more loyal and more profitable.
If referral marketing is so powerful, why don’t all businesses use referral marketing?
Referral marketing is fantastic as a marketing channel, BUT it is difficult to manage on a larger scale.
It’s easy to give out rewards to your customers and their advocates if you’re only a small shop with a few customers to serve.
But that’s not where you want to stay right?
You want your business to grow. You want it to expand Content Siphon Review
That means — as your business grows, it becomes more and more difficult to keep track of every single customer and friend that comes by your store.
Most businesses give up instead.
How Do I Use Referral Marketing To Grow My Business?
If you belong to the group of business owners who believe that referral marketing is the way, then here are some solutions to consider:
- Use a Custom-Built Solution
While the good thing is that you have full control over the entire process… the process can be long and tedious.
- Use a Referral App
As a smaller business, your alternative is to use a referral app like ReferralCandy. Apps like ReferralCandy (available on the Shopify App Store) allows you to get started quickly, so you can outsource your technical headaches and go back to focusing on your core business.
A referral app allows you to
- Focus on improving your core business
2. Make your customers happier
3. Help their friends get what they need and…
4. Grow your business
It’s a win-win-win-win.
And this is WHY referral marketing is awesome.
Want an easy-to-use referral app? Try ReferralCandy today!
The ReferralCandy blog is full of content about referral marketing that we’ve put together from years of experience running thousands of profitable referral programs.
11. Wool Products: Wool Overs’ referral program is pretty generous – offering referred friends 20% off and advocates £50 off.
Woolovers sells wool products of all kinds, all around the world. Their referral program is pretty generous as they offer you (the advocate) £50 off while giving your friends 20% off.
We’ve written more about Wool Over’s referral program here:
Apparel Referral Program Examples – Wool Overs
12. Designer sneakers: GREATS feature their referral program on every page– including their about page!
Greats is a Brooklyn-based brand that sells designer sneakers at an affordable price. They give both Advocates and Friends $10 off their next order.
Why does their referral program work so well? According to Ryan, CEO of Greats:
“They’re all about sharing. We give them social validation. Referrals just accelerate that, so they’re constantly referring people to the brand.”
We write more about GREATS’ referral program here:
Footwear Referral Program Examples – GREATS
13. Watches & Accessories: DapperTime’s referral program gives you 20% (in cash) of what your friends order
DapperTime has a very loyal (and stylish) following on Instagram, which pretty much guaranteed the inevitable success of their referral program. Its referral program is also pretty interesting – functioning more like an affiliate program than a referral program.
We’ve written about DapperTime’s challenges, success and their referral program here:
Watch Referral Program Examples: How DapperTime Grows Its Stylish Business
14. Lingerie: Leonisa’s referral program gives Advocates $15 off and Friends 15% off
Leonisa, the number 1 lingerie brand in Latin America, sells beautifully crafted and technologically advanced shapewear and lingerie, as well as sportswear.
Because they often do not have very “aggressive” offers or sales, they see these discounts as the ‘last motivation’ to make purchases.
“We don’t want people to be interested primarily in discounts. We want people to buy the products because of the design, quality, and comfort instead, so we can earn brand loyalty. The discount should be a slight push factor, but not the main reason for the purchase.”
We’ve written about Leonisa’s challenges, success and their referral program here:
Lingerie Referral Program Examples: Leonisa
15. Sandals & Footwear: Okabashi’s referral programhas Referred Friends spending 13.2% more on average!
Okabashi is the largest manufacturer of sandals and flip flops in the United States. The key to their referral program success? A great product that their customer loves.
Learn more about Okabashi’s referral program here:
Referral Marketing Case Study – Okabashi
16. Student Discounts: Perkla’s referral program gives students 20% off on various aggregated fashion products
Perkla was a startup that provides a one-stop online shopping platform exclusively for students. Students who sign up are able to enjoy discounts from an array of online stores, including: Bonobo, Converse, Reebok and Apple. Exclusivity reigns supreme at this startup here — only students can sign up to use them.
(NOTE: Perkla has been acquired by ID.me)
We’ve written more extensively about Perkla’s referral program here:
Student Referral Program Examples: Perkla
17. Designer dress shoes: Beckett Simonon’s referral program gives $25 credit to both Advocate and Friend
Beckett Simonon is an ecommerce shop that sells made-to-order shoes, bags and accessories. It reduces inventory costs by asking customers to pre-order goods before it is made.
18. Dresses: Sesura’s referral program gives discounts and coupons to encourage shoppers to buy more
Sesura is an online destination for Asian fast fashion. Their products are sourced all over Asia, e.g Taiwan, Hong Kong, Korea and Japan — and are available at an affordable price.
19. Ballet Flats: Rothy’s referral program gives $20 to both friends and advocates
Rothy’s is an online store that combines the ease of a sneaker and the polish of a feminine flat to create a unique ballet flat.
20. Yoga: YogaClub’s referral program gives both friends and advocates 25% off
YogaClub is a monthly yoga subscription box that allows customers to discover new yoga brands on the cheap.
B2. Beauty & Grooming Referral Program Examples
21. Shaving Razors: Dorco USA’s Referral Program gives Friends $5 off while Advocates get 5% of their friends’ purchase
Famous for being the blades used by Dollar Shave Club, Dorco sells great razor blades at an affordable price. With 20% discounts, referred friends would be more motivated to get something from Dorco USA, especially since their products are already very affordable.
Learn more: Shaver Referral Program Examples: Dorco
22. Speciality Razors: Bevel’s Referral Program gives Friends and Advocates a free month each for every successful referral
Bevel sells shaving products designed specifically for people with curly hair, coarse skin and so on. For a subscription service like Bevel, it’s smart to give a discount rather than a cash reward to the Advocate– it encourages repeat purchases.
We’ve written more about Bevel’s referral program here:
Shaver Referral Program Examples: Bevel
23. Monthly Beauty Subscription Boxes: Julep’s Referral Program gives both Advocate and Friend $15 credit
Julep is an ecommerce store that sells makeup and cosmetics, while simultaneously offering a monthly subscription box. We think Julep’s referral program works super well because of great copy, for e.g “for every bestie that joins.”
24. Cosmetics: Dermstore’s referral program gives $10 credit to both Friend and Advocate
Dermstore is an online store that carries products recommended by dermatologists. Its simple referral program offers $10 every time a friend makes a purchase.
25. Adore Beauty gives both Friends and Advocates $10 off
Adore Beauty is Australia’s longest-running online beauty store, and an official stockist of over 165 leading global beauty brands.
26. Thrive Causemetics gives $10 off their products for both Friends and Advocates + donates to a woman in need
Thrive Causemetics was founded by Karissa Bodnar who lost her close friend Kristy to cancer at just 24 years old. For every product purchased, they donate one to empower a woman thriving through cancer or domestic violence.
(Pro-Tip: Thrive Causemetics uses ReferralCandy to power its referral program!)
27. High-Tech Beauty: JeNu’s referral program gives $20 off for Friends and $50 off for Advocates
JeNu is an infuser uses ultrasonic energy to make skin care brands work better and faster.
28. Dental Products: Oxyfresh’s referral program gives Friends 10% and Advocates $10 off orders above $50
Oxyfresh sells safe, effective and gentle products for the home, body care and pet care that uses their patented advanced technology ingredient, Oxygene.
29. Brazilian Wax: Strip’s Refer-a-Friend program gives 50% off for Friends and redeemable credits for Advocates
Strip offers quality waxing services and advanced techniques when it comes to pre- and post-wax care with products.
B3. Electronic & Gadget Referral Program Examples
30. Smart Kitchen Robot: Mellow’s referral program– tell your friends about a super-cool smart sous vide machine
Mellow sells a really cool smart kitchen robot that can cook sous vide for you while you’re not even at home.
We wrote a blogpost about Mellow’s success here: