One of the easiest ways to win new customers is through people they trust. 77% of customers are likely to buy a new product when learning about it from friends. 42% of customers are loyal to brands their family and friends buy from. Companies like Uber and Groupon owe their success to these concepts, proving that referral codes can be the lifeblood of your business.
Referrals work by providing an incentive that is attractive to the current customer and the one being referred. An incentive will get a current customer more likely to recommend a product or service. It will also reduce the new customer’s uncertainty of the product or service and make them more likely to choose you over a competitor.
It may seem costly at first, but winning new customers pays for itself above and beyond any referral bonus. Think about how much a customer is worth to you over their lifetime. Now, is it worth giving away a free product or a $10 voucher to capture that value? Chances are the answer is yes!
Now you know how to structure referral rewards, but do you know how to promote them? For ideas, contact your customer success rep to schedule a free one-on-one.