One of the most effective marketing strategies is through word of mouth. Consider this, when you hear about a great product or service from a friend or family member, you are more likely to try it out yourself. That’s the power of referral marketing. It works because it leverages trust and credibility, both of which are key in any purchase decision.
For ecommerce businesses, referral marketing has become a popular way to acquire new customers. In fact, studies show that referred customers are more profitable, loyal, and have a higher lifetime value than those acquired through other channels. That is why BigCommerce, a leading ecommerce platform, has made it easy for businesses to set up a referral program to encourage their customers to share their store with others.
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What is a Referral Program?
A referral program is a marketing strategy where businesses reward customers for referring their friends and family to the business. These rewards could be in the form of discounts, free products or services, or cash incentives.
In essence, referral programs turn customers into brand advocates who actively promote the business to other people they know. This can help businesses increase their customer base, boost sales, and improve customer loyalty.
Why Use a Referral Program?
There are several benefits to using a referral program, including:
1. Increased Sales and Customer Acquisition
By incentivizing customers to refer others to your store, you can tap into their networks and attract new potential customers. This can help you achieve higher sales and customer acquisition rates than traditional marketing methods.
2. Higher Customer Loyalty
Referral programs also have the potential to increase customer loyalty by creating a more intimate relationship with your customers. When your customers feel valued and rewarded, they are more likely to stay loyal to your brand and continue to purchase from you in the future.
3. Cost-Effective Marketing
Referral marketing is a low-cost way to acquire new customers compared to other marketing channels like paid advertising. Since your customers are doing the promotion for you, you don’t have to spend a lot of money on advertising or marketing campaigns.
How to Set Up a Referral Program on BigCommerce
BigCommerce makes it easy to set up a referral program for your store. Here are the steps to follow:
1. Create Your Referral Program
To create your referral program, you’ll need to choose a reward for your customers. This could be a discount, a free product or service, or a cash incentive.
For instance, if you sell beauty products, you could offer a 10% discount to customers who refer their friends to the store. Alternatively, you could offer a free product for every three referrals made.
Once you’ve decided on your reward, you’ll need to set up the terms and conditions of your referral program. This includes the eligibility criteria, the referral process, and the reward payouts.
2. Integrate Your Program
Once you’ve established your referral program, it’s time to integrate it into your store. BigCommerce offers a range of referral program integrations that you can use to automate the referral process.
These integrations can track referrals, issue rewards, and even send referral reminders to your customers. Some of the popular integrations include Refersion, Smile.io, and Talkable.
3. Promote Your Program
It’s important to promote your referral program to your customers. You can do this by adding a referral link or button to your store’s homepage or by including it in your email marketing campaigns.
You can also incentivize your customers to refer more people by offering additional rewards for reaching certain referral thresholds. For instance, you could offer a higher discount or a bigger reward for customers who refer five or more people.
Referral marketing is a powerful way to acquire new customers and retain existing ones. BigCommerce makes it easy to set up a referral program for your store and offers a range of integrations to automate the process.
If you want to increase your sales and customer loyalty while keeping your marketing budget low, consider setting up a referral program on BigCommerce. With the right reward incentives, you can turn your customers into brand advocates who will promote your store to their networks, leading to increased sales and a larger customer base.