Video: How do I optimize my Customer Referral Program?
When you know your referral program isn’t working the hardest part if finding ways to improve it. In this section we go over how you can optimize your customer referral program.
How Can You Optimize Your Customer Referral Program from Referral SaaSquatch on Vimeo.
Hi, welcome to another session on customer referral programs. A great selling point for our system is answering the common question – How do I optimize my customer referral program. Well today, we’re going to talk about how to do just that. So, there’s only really 3 ways to optimize a web marketing program, the 3 ways are friction, incentives, and frequency.
Optimizing your referral program
The first thing you can do to optimize any web marketing, including your customer referral program, is to reduce the friction. This means how do we find the places where people are getting stuck, getting confused, getting lost, whatever it is, and how do we make it easier, it’s not rocket science, it makes sense. If you’ve ever seen a 400 field form that goes on forever and ever and ever and ever, that starts to get pretty rough, the friction goes up pretty high. Every time someone can knock out a field, we’re reducing the friction. We’re making it easier for the individual to complete the task we want.
Increasing incentive
Increasing the incentive, we can think about this in a customer referral sense where we’re giving them a bigger prize, but in reality, increasing the incentive is a very perspective based thing, its making me understand the value of doing this more.
Goodreads example
If we look at something like Goodreads., if you’re familiar with that service, in Goodreads, one of the services that they discovered was if you write a review of a book, they put that right at the top for your friends to see, the incentive you get there is that you look smarter in front of your friends.
Why we like incentives
We can look at incentives in a bunch of different ways but the idea is how do I make this experience more rewarding, and we can look at this more than just increasing the actual prize in play.
Increasing Frequency Definition
The last way we can optimize the customer referral program is by increasing frequency. This doesn’t mean becoming a spammer and it doesn’t mean necessarily pop ups, but what it does mean, is constantly, in different ways and different wordings showing people an opportunity to participate, and when they do participate, not stopping, not feeling like “Oh, they’ve done one, I should leave them alone”.
Value of Increasing Frequency
Once people get into the flow of doing something, we want to make it easy for them to continue with one, two, three, four, five and let them opt out when they’ve become tired. This is just a high level overview of the three ways you can optimize your referral program, and we’ll go into more detail on these in future sessions.
Wrapping Up
The quick recap is you can reduce the friction involved in your company referral program, you can increase the incentive that people get for participating in your customer referral program, and you can increase the frequency in which people are presented and then able to participate in your customer referral program. We hope we answered your question – How do I optimize my customer referral program. That wraps up the basic ways to optimize your customer referral program.