Which sales channels have you found to drive sales for your brand? While of course we love the use of social media for conversions, refer-a-friend is still such a reliable and useful channel to optimize among your marketing strategy. Referral marketing is the best way to expand your marketing team without having to go through a hiring process and costs you a lot less.
With the influx of influencer marketing, it is no secret that referrals are the most high intent. People trust what their friends have to say. If we didn’t, they wouldn’t be our friends. This is in everyone’s benefit. Why? Referrals come pre-sold. According to Nielson, 77% of consumers are more likely to buy a new product when learning about it from friends or family. They already think your product or service is awesome because a friend said it was. Less work for the sales team, higher closing rates, and a small payout to the referral sounds like a win for everyone.
The ROI might be the most exciting part of referral marketing. Something small to gift a client as a thank you costs a lot less than advertising to a cold market. You save on not only sales call time because time is money, but you also save advertising dollars and have a higher consumer retention rate. Happy customers who are referring their friends are likely to stay clients especially when they get perks for sharing your services. Not only will the original referrer stay but chances are their friends will too. Sounds like a giant win to us. That being said, here are some of our favorite refer-a-friend programs today:
If you’re not using Hulu’s referral program yet, you may want to start since The Handmaid’s Tale starts again soon. If you visit your account page, which I know we don’t always do once we create the account, there is an option to refer-a-friend. For every friend you refer, you get a $10 gift card. Instead of sharing your password next time, earn a little cash by referring a friend to Hulu. What I love about this program is that instead of Hulu credit, you get a gift card to use on whatever you want.
I think that’s the most successful part of this referral program. Hulu has you sucked in with their originals and they know you aren’t going anywhere anytime soon so instead of crediting the services you already pay for, they offer a gift card to spend any way you want. You’re continually keeping the consumer in the driver seat this way and that’s really working for them.
We all have to eat and who doesn’t love free food? That’s exactly what happens when you refer a friend with GrubHub. For every friend you refer, your friend gets $12 off their first app order when they spend $15 and you get $12 off your next app order when your friend orders. Call me crazy but that extra $12 screams extra mozzarella sticks to me.
This works so well because everyone eats and we all love the convenience of ordering from our phones. As a millennial, I don’t usually order from a restaurant unless I can order from my phone either through an app or their website. GrubHub knows this and has capitalized on the convenience factor by offering some free food. Everyone wins.
ClassPass, if you’re not familiar, is an awesome platform for trying out types of gyms and studios. Instead of subscribing to one gym, you’re given a certain threshold of points per month to spend on Yoga, Spin, and other fitness classes at different gyms. By referring a friend to the program, they give you both a month’s worth of points free! For a fun way to stay fit and to check out an interesting refer-a-friend program, give ClassPass a try!
We all need rides, right? Scoring on Uber’s refer-a-friend is such a no-brainer because you get a $10 ride and I receive a $10 ride. Pretty simple. They also have Uber points, which you score more of when you refer more people to the platform. Referral marketing works best when the product is so useful to a mass group of people. Since Uber’s business model is so practical to people like us, their referral marketing is very successful.
Wayfair has a great program for referrals. You can help your friends save $20 on their order of $50 and you get $20 to spend. As someone who is constantly decorating for every season, this is a major win for me. On your Wayfair account is a rewards dollars section and from there you can refer those friends out. We all want Pinterest-worthy homes so it’s nice to save with referrals on Wayfair.
A successful referral program requires not just effective marketing, but making it the most practical to your customers. Have any questions about how to optimize your strategy? Annex Cloud’s refer-a-friend solution can help you acquire and retain those high-intent customers. We’ll help you cater a program to your business model with a dedicated customer success manager helping you every step of the way. Talk to us today to get started!