When it comes to acquiring new customers, digital marketing is rarely short of tools and ideas. But few rival the effectiveness of a well-designed referral program.
Simple to understand and powerful in its results, sponsorship is based on a lever that resists all trends: the recommendation of your satisfied customers.
So what is a referral program? What makes it so effective for your marketing strategy? And how can it become a key driver of your customer acquisition? In this article, JeudiMerci takes stock of all these questions.
What is a referral program?
A referral program allows your existing customers (the sponsors) to recommend your product or service to those around them (the referrals) in exchange for a reward. The nature of this reward can vary: it can be in the form of discounts, financial or non-monetary (gifts, exclusive access, etc.).
What makes the referral program strategy so powerful is that it is based on the bond of trust that exists between the sponsor, on the one hand, and their network, on the other. In this way, you multiply the chances of conversion. Remember that word of mouth is a key factor in buying decisions: 88% of consumers trust it.
There is every reason to believe that referral programs are not a temporary trend. On the contrary, they rather represent a sustainable and profitable investment that must be developed for any acquisition strategy. From startups to global businesses, the power of sponsorship does not rule out any business model.
4 good reasons to invest in a referral program
For a controlled acquisition cost
You should see the referral program as an investment. Acquiring new customers will always cost you more than retaining existing customers. Therefore, with a referral program, your best customers become nothing more and nothing less than ambassadors for your brand. Ultimately, this allows you to control your marketing expenses, which are still necessary to attract prospects.
For an exceptional return on investment (ROI)
A referral program is still more profitable than a traditional advertising campaign. Provided it's well executed, of course!
For qualified prospects
Customers obtained through a referral program are often more loyal than those attracted through other channels. Plus, they tend to spend more.
The result: on average, the customer lifetime value (CLV) is more interesting for you.
For the snowball effect!
Each new customer thus referred can in turn become a sponsor. It is a virtuous circle of organic acquisition.
Best practices for a successful referral program
However, it is not enough to launch a sponsorship program blindly. To get the most out of it, there are a few best practices to follow:
- Offer an attractive reward. The key to a successful program is first and foremost there. You have to create an irresistible offer, both for the sponsor and for the sponsor. For example, a credit of €50 for each new registered referral may be enough to encourage your customers to engage in the sponsorship action.
- Simplify the process as much as possible. A program that is too complicated may discourage users. Conversely, thanks to optimized solutions, you will be able to take advantage of all the advantages of the referral program for customer acquisition. An interesting idea: automating registrations, notifications, and rewards management will help ensure a seamless experience.
- Communicate transparently. To do this, various ways are available to you. You can use email campaigns, banners on your site, or even social media posts to promote your program. Most businesses that have launched a referral program will be able to confirm it to you: targeted communication is a key success factor.
- Analyze and adjust your program. Follow the right key performance indicators to continuously improve your action: number of sponsorships, conversion rate, ROI, etc. To go further, ThursdayMerci gives you here 5 essential features for a referral program integrated into your CRM.
Concretely, what if we took a successful example to illustrate?
Take the customer case of L-Expert-Accounting.com, which succeeded in making sponsorship its number one source of acquisition thanks to the JeudiMerci solution. By automating and optimizing its process, L-Expert-Accounting.com was able to expand its clientele, but also to consolidate its brand image with its sponsors and sponsors.
The role of ThursdayMerci in your sponsorship strategy
JeudiMerci offers you a turnkey solution for create, automate and optimize your referral programs. With our team at your side, you can count on a range of specialized tools and tailor-made support such as:
- The personalization of rewards, adapted to your audience;
- CRM integration, for accurate performance monitoring;
- Targeted campaigns, to increase engagement.
And since nothing speaks as well as numbers, one last statistic to show you the impact of sponsorship programs. 92% of consumers trust recommendations from those around them. In other words, sponsorship has everything it takes to become your best source of income and JeudiMerci has the expertise to transform your marketing approach.
So, ready to launch your referral program? It is no longer a luxury or an option, but a necessity to attract new customers.
More and more businesses are doing it to boost their growth while strengthening their community of loyal customers. With a well-developed strategy and the right tools, like those offered by JeudiMerci, you can turn your customers into true brand ambassadors. It's time to harness the power of word of mouth and recommendations to take your growth to new heights!
ThursdayMerci can help you design a referral program that meets your expectations and ambitions. Discover our solution today!
