Trust is the central principle of all human relationships and even transactions; this is why brands always seek to build a relationship with their customer based upon the fundamentals of trust. Every marketing strategy and brand loyalty program is designed to build faith. It is also the primary reason for the success of referral marketing.
Referral marketing leverages the power of trust and human connection to expand a brand’s reach by infiltrating the social network of loyal customers and brand advocates. Referral marketing strategies are designed to motivate the customers to organically promote the brand to their trusted network. A study by Nielsen says that 84% of customers consider referrals as the most trusted form of advertising.
Referral marketing can be a complex process with a high success rate, but it is possible to simplify it to a great extent through automation. Automating referral marketing processes with the help of referral tracking software tools can help businesses harness referral marketing power efficiently.
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What is Referral Tracking Software, and How Does It Work?
Along with huge data, referral marketing has a lot of components that need to be monitored. Tracking who made the referral and to whom, along with who has or hasn’t responded, the reach and effectiveness of the program, and means to incentivize the referrer is a complex process and need to be automated.
Referral tracking software will assist you in smooth and efficient data accumulation generated through your referral program. It will considerably simplify the process and give you error-free data on your associated referral campaign. Good software will also show the success of your campaign by giving you insights on your content’s reach and effectiveness, recording the number of times your referral link has been shared, click-rate, and drop-out rate. And it will point out what exactly is putting your customers off.
Why Do You Need a Referral Tracking Software?
A successful referral program requires an accurate assessment of various criteria and data at hand. It will help you collect, store, and analyze the data generated through the program. Here are some of the aspects a good tracking software can help you with:
- Gauging Registrations – The most important activity of your referral program funnel is referrer registrations. Once you get the ball rolling, registrations should pour in. Tracking software will help you gauge your registrations and give you data on how many referrers have been successful (or unsuccessful) in engaging new customers.
- Validating Referrals – It becomes difficult to analyze a large amount of referral data on time and determine which referral has brought in new customers. Good software will help you legitimize a valid referrer and help you reward him/her accordingly.
- Detecting Fraudulent Activities – A successful referral program will attract the attention of many, including scammers. It is important to filter out genuine referrers from fraud accounts. Tracking software will alert you of such dishonest activities and enable you to block such accounts.
If the referral program has a large-scale execution plan, it becomes even more necessary to have a high-performing referral tracking software to ensure a smooth, successful execution of the referral program.
Advantages of Referral Tracking Software
- Helps You Understand Customer Behavior – A tracking software will help you understand customer behavior and purchase pattern. It will help you determine what rewards excite and motivate customers to refer your products and what gifts don’t motivate them enough. It will also act as a feedback mechanism, showing you how satisfied or dissatisfied a customer is with your product and service.
- Gives Insights and Statistics – A major advantage of using referral tracking software is that it gives you accurate statistics and intuitive insights on your referral campaign. It will help track engagement rate, give you statistics on how much it’s been shared, and even help you gauge the overall customer participation rate.
- Helps You Track Conversion Rate – One of the most important features of a tracking system or software is it helps track conversion rate. It gives you accurate information on how many customers have been engaged through the referral campaign, plus identifying who your star customers are, exemplifying those responsible for attracting massive traction.
This vital information will enable you to make necessary changes, if required, to your campaign and help you to better understand your customer base.
Top 10 High Performing Referral Marketing Software Tools
- Annex Cloud – Annex Cloud offers an omnichannel referral program. It is the only software vendor with a complete platform for customer loyalty and affiliate marketing solutions. Annex Cloud’s Smart Engagement Algorithm (SEA), when combined with Omni-Channel Refer a Friend and other customer loyalty and advocate marketing solutions offered by the company, ensures greater ROI, engagement, and a holistic view of the customer’s journey.
- Referral Rock – Referral Rock is known for creating a customized and seamless interface for a better customer experience. Referral Rock promotes its program on different channels using widgets, iFrames, access links in your email, and social media networks, etc.
- EverFlow – EverFlow helps track high-performing referrers and consequently also detects low-performing, as well as fraudulent, referrers. It provides businesses the ability to track and manage all affiliates in an efficient manner.
- Ambassador – Ambassador provides turnkey solutions that help you automate the start-to-end marketing process. It also enables you to customize your program and streamline the process, providing hassle-free program execution.
- InviteReferral – InviteReferral offers detailed analytics of every activity. It can be integrated into multiple platforms.
- Referral Candy – ReferralCandy is marketing software for SaaS and e-commerce businesses. It allows you to customize and choose your rewards for the referral program.
- First Promoter – First Promoter enables one-click, automated payouts. Special features of First Promoter also include private campaigns to invite specific affiliates and the option to set percentage or fixed commissions.
- InviteBox – With clients like Dropbox and Hipster, InviteBox is gaining popularity in the marketing arena. It provides an all-in-one referral system solution to its clients.
- Friendby – Friendby is a mobile and user-friendly software. It has a highly efficient algorithm that helps you detect fraudulent activities immediately.
- OSI Affiliate – OSI Affiliate is free software, which makes it great for budding entrepreneurs and start-ups. It can bolster new businesses through its effective but affordable solutions while suitably enhancing customer experience.