5 Reasons Your Marketing Routine Should Include a Referral Program

5 Reasons Your Marketing Routine Should Include A Referral Program

Referral marketing is one of the easiest and most cost-effective ways to grow a business.

Here’s how we know: it’s been proven that people are 4 times more likely to buy from a business when referred by someone they know. This can be amplified when using social channels.

In fact, many businesses already use social channels to spread the word about their business. Because it is a great way to create customer loyalty and drive revenue. So you can see how it fits well into a marketing strategy.

Before we dive into the other reasons you need a referral program, let’s clarify what it is.

A referral program makes it easy for your customers and/or partners to refer you to their friends. It hones in on word of mouth as it provides further reason for customers to share you with friends.

Let’s dive into why your marketing routine needs a referral program.

1. Easy To Start A Referral Program

Many marketers think that implementing a rewards program is going to be difficult. That’s not the case.

With the right software, you can create a program quickly and easily.

Automation software allows you to further incorporate a referral program into existing processes. This saves valuable time.

With an automated referral process, it’s a breeze to start and keep up with the program.

Implementation, to customer invitations, all the way to issuing rewards is easy.

2. Add More Substance To Your Email

We’d bet you send out quite a few emails to customers, be it a friendly follow up email, single email, or series of emails. And if customers are reading them, it makes sense to promote your referral programs there. It can either be the main focus of the email or a simple final touch.

Either way your message is getting out there. And every customer who opens your email will see you’re looking for referrals.

Let’s examine why promoting a rewards programs in your emails is a great marketing strategy.

  • Easy program promotion
  • email signatures – a tiny, but excellent way to promote a link to your program. Plus, they see it every time you send an email.
  • post-purchase emails – add a little flare to your confirmation and thank you emails. You can add a small tidbit at the end of your email, or create a fun image to help catch some attention.
  • newsletters – this works if you already have a list of customers and subscribers. Include an email or a section that explains your referral program. The more you remind customers it exists, the more referral traffic you will receive.
  • Fun images to showcase your program

You may want to add a little something extra to your regular emails. Follow your main message with a fun infographic or linked image. This can help create interest, and provoke a referral to occur.

  • Great for nurturing relationships

There are any number of reasons to send an email. Most of the time, it’s to nurture a lead or keep a customer loyal.

Follow-ups, reminders, and thank you emails are great relationship builders. They are also perfect for snagging some leads!

over tone example

Screenshot from Over

3. Creates Repeat Shoppers

One of the reasons referral programs work is that it strengthens brand loyalty.

More often than not, a customer earns a reward for referring a friend (doesn’t have to be a monetary reward, either). This incentive encourages the customer to remain loyal. This is especially true if the incentive is a coupon or store credit.

Even if the customer doesn’t get a reward, the act of referring instills a sense of loyalty towards you. They wouldn’t refer you if they didn’t like you, or believe in what you’re doing. They especially won’t refer you if your product isn’t good.

But, if they take the time and energy to share with friends, chances are they plan on staying a customer for a while.

The referred customer is also 25% more likely to become a return customer. Meaning a referral program produces repeat shoppers all around.

4. It Provides Brand Trust

When customers are doing your promotion talking, you’ve established trust in your brand.

People believe recommendations from friend and family over any other form of marketing. This is because of the effect it has on their own reputation. There is social pressure against sharing low-quality products and services.

As your customers share your business on social media, your social currency increases. This makes you the talk of the town. When someone shares you and your referral program, they can share with hundreds of people.

Bonus:  If you have a good amount of referrals coming in, use it to your advantage.

If someone refers you, they are likely to write a good review as well. This, as you can imagine, has a tremendous impact on your brand’s trustworthiness.

5. Cost-Effective Marketing

What if you could get new customers and repeat shoppers without having to advertise?

Well, you can.

People use word of mouth as they share brands via social, email, and everyday conversation.

These interactions (as part of a referral program) improve customer acquisition — all at a lower cost than other forms of marketing.

Think about it… Your customers are the ones getting your name out there. Most of the time, they share with someone who needs your product or service.

[helpful tip] With customers doing the talking for you, make the process easier by providing a little bit of copy to share.

Most referral software allows you to create output messages for customers to easily share via social buttons.

See how one customer can spread the word to all their friends across a social platform?



It’s clear to see referral programs are a great addition to an existing marketing campaign.

They not only save money, but make advertisements seem more trustworthy and relatable. Plus, they create better customer relationships, which creates repeat customers.



Author bio:

Megan Mosley is the marketing specialist at Referral Rock. We believe every business has the potential to increase their word of mouth. Our referral marketing software helps unlock that potential by making it easy for customers to refer and businesses to operate.

Megan Mosley