Benefits for a friend
Fair exchange — bring a friend, and you both get bonuses. Your current client can receive both a financial reward and benefits in service. The prospective client will be rewarded as well. For example, with promo codes, favorable terms, and so on.
You will involve new clients
The current client will share a link to your product with his/her friend, so your future client will already have a credit of trust in your brand. This will be positive for further interaction with the product.
Purchased products will grow in number
The number of purchased products will increase if your referral bonus' effective period is time-limited. This will force the client to spend it and then re-join the referral program.
Key Performance Indicators
The number of purchased products
If you designed the program correctly, the client will become more interested and encouraged to use it, which will ensure the growing number of purchased products.
The number of new clients
If the client finds the terms of joining the program attractive, the metric will improve.
How to apply the Potion
Set up a reward system
Specify bonuses and rewards you can present to both your current and future clients. To that end, analyze how often and in what quantities your client consumes a particular product, as well as the costs you bear. Based on this, you will understand the amounts of money you can spend on referral bonuses to attract new clients. Your current clients are already encouraged and loyal, in general, to your brand, since they have been using its products. But you should consider in detail all possible options of rewarding new clients — it can be participation in a closed user group, a discount on a product or subscription, a gift, or a prize.
Develop a referral program
The referral program can be either a part of an application for users or any one-time activity, e.g., a landing page. When receiving a referral link, the prospective client should be redirected to the product and the basket to be able to perform a targeted action.
Inform your clients about the referral program
Communicate to current clients the benefits and necessity of using the referral program. Share this information via all possible communication channels — mailshots, onboarding in client applications, banners on websites.
Monitor the indicators
Track both the use of the program by your clients and the metrics. If you notice clients are unenthusiastic to use the program, modify bonuses and the information field.