What Makes Referral Marketing For E-commerce, A Perfect Strategy To Boost Sales?
All e-commerce businesses work on multiple channels to market their business among the audiences to gain maximum sales. But, referral marketing for e-commerce has become the most preferred marketing strategy in the past few years. Why is it so?
This is due to the fact that people are five times more likely to purchase from an e-commerce business if their friends and family have recommended it. Every day, thousands of customers spread awareness regarding their favorite and go-to e-commerce brand using word-of-mouth marketing while talking to others on social media, through emails, or in real life. In order to gain more sales and improve their customer base, businesses must combine their existing customer interactions with referral marketing programs at a lower cost than traditional marketing methods.
What is referral marketing for e-commerce? How does it work?
In simpler words, referral marketing for e-commerce is a strategy used by e-commerce businesses, making it convenient for its existing and satisfied customers to refer their services and products to others. This strategy mainly works on a word-of-mouth approach, encouraging the customers to talk about their favorite brand with friends and family. As an e-commerce business owner, you can provide your customers with simple referral tools for marketing and wait for the magic!
How to implement referral marketing in an e-commerce business?
Here are the three most effective ways e-commerce businesses should use referral marketing as a strategy to boost sales and gain new customers. These three methods below will upsurge your business's sales by many folds. Keep reading.
Coupon codes, gift cards, and discount offers
One of the most effortless strategies of referral marketing for e-commerce is to offer your existing customers; gift cards, coupons, and other discounts each time they make a new referral through a generated referral code. Similarly, when new customers use the former referral, they are rewarded. You can use the Coupon Referral Program plugin if you have a Woo-Commerce store, as it contains all the tools you require for referral marketing via coupon codes.
E-commerce referral program via emails
Most e-commerce businesses prefer email marketing as an excellent marketing strategy to gain new customers. Although social media has gained immense popularity in the past few years, still email marketing has retained its place to be a highly effective and relevant marketing approach. However, email referral programs require automation, as you cannot expect your customers to sit and type long positive emails for customer referrals. For example, Dropbox is an excellent app with an email referral marketing program that offers 16 GB of storage each time a new customer signs up via an existing referral.
Offering cash back or cash rewards have been proven to be a successful referral program, where the customers get immediate cash backs whenever they refer new customers to your products or services. For example, an online store called CashKaro offers instant cashback to its existing customers each time new referred customers purchase from the website.
Tips for making referral marketing for e-commerce effective
Now that you know the three most effective referral marketing methods for e-commerce businesses, you should also learn that strategic planning for implementing this marketing approach is necessary. Below are a few tips for making your referral marketing program effective enough to gain maximum sales and ROI.
1- Create a win-win situation
Always give your customers a good reason to refer your business to their friends and family. For example, offering incentives or other rewards like discounts, free deliveries, or gift cards will always favor your customers and, eventually, your business too.
2- Make your e-commerce referral program prominent
It is important to know that your e-commerce referral program is not to be kept hidden in the corner. Implement it across every social media channel of your business and emails. You can make these referrals prominent on your website by displaying bold popups, mentioning the rewards you are offering on each referral as soon as a potential customer lands on your website.
3- Do not ignore social media promotions
As mentioned above, do not ignore the power of social media in these times of digital transformation and technology. Spread awareness of your e-commerce referral program through social media by creating engaging posts that encourage your customers to participate in the referral marketing program actively.
4- Personalization is the key
Most customers tend to return to a brand where they feel valued. Therefore creating personalized messages will increase the chances of your customer engagement up to 80%, making them refer your business to their friends and family.
5- Smoothen the referral journey
In today's era of technology, referral marketing for e-commerce is no longer restricted to just word-of-mouth marketing. Therefore, using popular digital sharing channels like WhatsApp, Facebook, and emails, is necessary to stay relevant to today's competitive market.
Read More: Personalized Ecommerce Customer Journey Guide
6- Do not rush
Remember, there is always a right time to ask your existing customer to refer your services to others. There is no point in rushing, as this might counterattack with your customer navigating away from your business. It is best to ask for customer referrals after your existing customer has already made a purchase.
Referral marketing for e-commerce is a match made in heaven. There is no better marketing strategy than your existing customers personally recommending your products and services to their friends and family via different channels like emails, social media, referral links, and word-of-mouth. However, it all depends on you and how hard you work to offer your customers a smooth and convenient referral marketing experience. Undoubtedly, if your customers enjoy the experience, there is a 90% chance they will refer your business to others in their social circle.
As mentioned above, there are multiple ways of doing e-commerce referral marketing, including coupon referral programs, gift cards, email referrals, cash rewards, and more. You can use any of these methods and boost your sales. Converted.In will take care of all your needs and wants for referral marketing strategy.