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How to Choose the Best Referral Rewards [24+ Examples]
referralrock.com
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What do you usually pay for quality leads/customers? Make the reward value comparable. “Usually, rewards should be close to, but lower than, your average customer acquisition cost.” What is the lifetime value of a customer?
Offer incentives that motivate your target audience: This includes more advanced referral reward structures, including tiered, multi-step, referral contests and more “Trigger rewards based on status updates in your CRM, e-commerce platform, or other system of record:This is especially useful if you want to reward for qualified leads as well as converted referrals!” Automate reward fulfillment with a variety of payout options: This includes cash, gift cards, discounts, donations, and custom rewards.
Reward after a qualifying action(demo, consultation, signed contract) for longer sales cycles — consider a smaller reward at the qualifying stage and a larger one at purchase. See: multi-step rewards below. “Manual approvalis an option with referral software, letting you review and issue rewards in bulk before sending them.” We only recommend waiting until after a return period if there’s a known issue with early refunds or fraud. Otherwise, the delay creates a bad experience for the people referring you.
How to get started with referral rewards? “software automates the approval and sending of referral rewards once they’re earned” But you’ll need the right referral software for the most flexibility in issuing and managing rewards, because many types of referral software only handle simple “give one, get one” rewards. With Referral Rock, you can:
Trigger rewards based on status updates in your CRM, e-commerce platform, or other system of record:This is especially useful if you want to reward for qualified leads as well as converted referrals! “Automate reward fulfillment with a variety of payout options: This includes cash, gift cards, discounts, donations, and custom rewards.” Learn more about how our software can help you set up and manage rewards to grow your business!
“If people aren’t already recommending your business, a better incentive won’t change that.” What rewards do is channel word of mouth that’s already happening — making it easier for people to share, and giving their friends a reason to take action. Done right, the reward feels less like a transaction and more like a gift the sharer gives their friend.
They motivate people to share your business with friends, and create social currency for advocates: since their friends can get a deal because they know the advocate, the advocate gets a boost in their reputation. “And by rewarding the friend being referred, referral incentives create a sense of urgency and help motivate the friend to take action (make a purchase).” Choosing a referral reward that fits your business: 4 key steps
Choosing a referral reward that fits your business: 4 key steps “Choose referral rewards that motivate sharing (and purchasing), and that are sustainable for your business to pay out.” We recommend using four basic steps to choose your reward:
Referral rewards aren’t what makes customers talk about you. If people aren’t already recommending your business, a better incentive won’t change that. “Done right, the reward feels less like a transaction and more like a gift the sharer gives their friend.” A good referral incentive should attract customers, make sense for your business, and not take away from its bottom line. This guide covers how to choose the right rewards for yourcustomer referral program: who to reward, when, how much, which types perform best, and which structures to use for different business models.