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MenuHow can I make a double-sided referral program successful?(instant vs delayed rewards)
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It sounds like you want all your "new customers" to register with their credit card info so that you can verify that it isn't someone just referring themselves via zombie email addresses. That makes sense, otherwise you'd be giving away a lot of rewards for fake referrals.
When people send referrals to friends, they aren't doing it to make rent money, they're doing it for a reward that would be nice to have, but isn't essential, and isn't time critical. Because of this, I don't think that people who actually think your product is cool would hesitate from referring friends if they know the reward could take weeks to come.
However, you _can_ get the best of both worlds, by also giving _another_type_of_reward_ immediately after each of their friends signs up. We'll call this other reward the "social reward". It would be an email you send saying, "One of your friends just signed up, thanks so much! We'll send you a reward once they start using our services!"
That way the referrer would be getting an immediate reward once any friend signs up by
A) seeing that they provided their friend with something useful, and
B) knowing that their 'real reward' is imminent.
Meanwhile, you would also be giving the referrer feedback about how many of their friends signed up.
A) If very few of the referrer's friends sign up they can ask them why they didn't, or give reminders. So they'll be doing your work for you.
B) Meanwhile, if many of the referrer's friends sign up, it would be a powerful implementation of a psychological concept called "social proof" , which essentially means that the more people like you do something, the more you do it too. So the more of the referrer's friends sign up, the more committed the referrer becomes to your product too.
In summary:
- Give the big reward after their friend(s) starts actually paying for your services (i.e. delay of possibly weeks).
- Also give "social rewards" via email immediately after each of their friends signs up.
By doing those two things you'll be getting the best of both worlds + a bunch of other cool side effects.
If you want to discuss these, or other options further, feel free to send me a message,
all the best,
Lee
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Growth hackers! We need your advice on setting up a top referral program
Question ... If the lower end of the retail price range for your jewelry is $100, why would you be giving away $50 in cash? Presumably, the margin on a $100 piece of jewelry is such that its wholesale cost is roughly comparable to that $50 in cash. So if the choice is between giving away $50 in cash versus giving away $50 indirectly in the form of products worth more than $50, why would you pass over the opportunity to place your products with your customers? There are dozens of ways to spend $50 on marketing. But the best way -- surely -- is to put your branded jewelry around the necks or on the hands and wrists of people who will go out in public wearing / promoting you! I'm sure you could structure this in various ways to make it just as cost effective as giving away cash. At worst, the cash probably ought to be in-store credit. Yet you might also want to consider incentivizing a person to refer 2 people or 3 people or 5 people as a minimum in order to redeem free merchandise of various price points. Anyone who sees that they are 1 more referral away from a $500 piece of jewelry will be much more eager to bring in another friend than someone who has already been paid $50 apiece for each referral thus far.JP
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How effective is Referral Key for generating leads?
Not totally clear on what you are asking, but if the questions is; does giving out a referral code to an existing user in hopes that they would refer another work? My experience (largely in B2B software) is not all that well, at least not without some sort of incentive. Even if your user is super satisfied with the product/service you are providing, simply giving them a code to give another person doesn't necessarily drive them to make the handoff. Now, two things. First, if you either incentivize the existing user with say a discount on his next bill or a free goodie, then he'll be more likely to do it... Even better, if you do that, plus give the referred user some kind of benefit, like a discount on his first bill, free trial or other goody, then it can work rather well. Second, all that said, know that referrals in general are gold. You should test and do whatever you can to get referrals. Generally @Leads360 we found that providing really high quality customer service (more so than even the best product) lead to referrals. To that point, our sales people worked in tandem with customer service in this way. Whenever a CS person realized they gave a great customer experience they would let the sales person know and they would then reach out to that customer while still warm from the nice touch and simply ASK for a referral. I was always surprised when we could get referrals simply by asking. I like to stick with 1 referral at a time, just ask for 1 person to be email connected with, don't overwhelm them with the statement "hey, can you refer your friends and colleagues to us", be specific. Something like "I see on LinkedIn you're connected with John B from ACME corp, I'd really like to speak with him about our product, would be willing to make an introduction for me".JS
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Is requiring Facebook login & offering discounts to users who sign up & their friends a good growth hacking method?
I have more than 15 years of marketing experience and this includes experience in growth hacking. I look forward to the possibility of talking soon.MS
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What is the best option for a growth hack when it comes to the e-commerce fashion industry?
Expertise: I currently run a high performing referral channel with several million invites every year. As you build out your growth strategy it’s important to identify the main “macro” conversion. This is an action that you need users to take to make the product successful. In your case, the product goal is - get multiple people to commit to buying a single product. On the other side of this, your customer’s goal is - to get a deep discount on a product. On the surface it would seem that the more comprehensive way to get users to invite others to your service is to get them to go in on buying a product together. This would mean that you want to build your growth features around sharing product pages. However, one might consider that while friends and family might be buying same offer for things like food, activities and experiences, they might not be willing to buy the exact same shoes, dress or pants. That said, you seem to be on the right track with the referral link plan. The key to getting people to invite others is to clearly showcase the functionality and benefits. a) Triggers - you need multiple placements from which to invoke the invite flow. Product page to display -10% price with CTA to share ("Get this product for 10% by inviting friends) Home page (“Make your next purchase 10% by getting your friends to sign up and buy”) Emails promoting the program. b) Landing page that clearly explains the program (“Get $30 to spend when your friends join and buy”) c) 2-sided benefits, consider clearly offering something to the invitee other than your great group buying prices (“Invite your friends and you both get 10% off your next purchase") On the technical level for Facebook sharing you might want to consider Messenger vs. Wall Posts. While you might think that you’re getting more reach with a wall post, consider that Facebook algorithm is not very kind and your shared post might not get seen much. Direct messages on the other hand are user-to-user. They have a very high likelihood of getting opened and lead to much better clickthrough. This might be quite a bit to build on your own and you might want to experiment with a service like Extole. I haven’t used them myself, but I’ve recently reviewed their offering and it seems like a good way to get a new referral program started. Lastly, don’t discount email invites. They still perform really well in terms of engagement and can be fairly simple to set up with a mailer and a well optimized template. Most important - figure out what kind of numbers work for you. It’s easy to get a referral program get out of hand in terms of cost if you’re finding that your payback period is of significant length. Feel free to schedule a call if you would like to discuss further.SD
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Best referral marketing plugins during checkout if using Stripe?
Have you checked out http://www.leaddyno.com/ They integrate with stripe. But I'd need know what kind of business you have. Ecommerce? SaaS? Marketplace? Majority charge a relatively high monthly fee so if you think you'd use it often might be worth just paying a dev a few hundred bucks to build out something quick. Happy to hop on a call to tell you what we did for our startup.RA
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