Referral business is indeed very essential for every brick-and-mortar and online companies. But, it is not a simple task. Customers do not deliberately become your ambassadors unless there is something profitable for them in doing so. According to numerous studies, the word-of-mouth advertisement is more effective than any other methods. The next best to word-of-mouth is the referral programs. How to create a referral program?

Create an offer

The first step in the referral business is creating an offer that your customers cannot resist. Thinking about what would drive your customer is the key to this step. Would your customers like a discount on products? Or, would be it be more intriguing if you make them eligible for any membership with packages of benefits? Some elite groups get driven by recognition and star ratings. This style of motivation is more common in country clubs and membership-based businesses. In short, walk in your customer’s shoes.

Simplify it as much as possible

According to experts in the referral business, no step in this whole process should be confusing or complicated. Your customers should not spend too much time and energy on it. For instance, your site should have a referral link attached to Whatsapp, Facebook, and others, which allows your user to share it with just a couple of clicks. Do not expect your user to copy the link, move to Facebook, and write a post about your product after attaching the URL.

A transparent program always works

If you look at any top-notch referral business, their reward programs are very transparent. If your program dictates that the new customer should purchase products for more than a threshold ( in terms of money) for the referee to earn points or discount, mention it upfront. If there are any terms and conditions related to the program, your customer should know it.


Crafting a grand plan isn’t enough if only four of your customers know about it. Promote it with flyers, banners, advertisements on your websites, and allow employees to explain it to every walk-in customer. Encourage your customers to be a part of this program. After all, more referees indicate more traffic. It would be best if you promote the referral program as much as you promote your product or service.

Recognize the best referees 

You are indeed providing something in return for every referral they make. This benefit is not enough to motivate customers. Send a thank-you email, give them a tag line, and create importance for their work. Say, if a customer has brought in the highest number of customers to your business, appreciate them with a token gift, create a wall of fame, give them a title, and so on. In most cases, the non-tangible rewards work as much as tangible benefits.
Most of the referral business experts mention that the companies fail to motivate their employees to join the referral programs. It might be their primary obligation to drive in more customers. But, a referral program with rewards can be catchy for the employees, and they would put in more effort than usual, at least for the tangible and intangible rewards.

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