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This allows for you to ask questions about the picture and provides a place for the student to write the answer to your question.
This is great for getting students up and out of their seats and interacting in English with their fellow classmates. Now that you know the basics, it’s time to start thinking about what a referral program will look like for your business.
Studies show that even getting up every 30 minutes or hour to walk around can increase your health. What sort of results can you expect once your program is up and running?For the sake of discussion, let’s start with the last of that string of questions: what sort of results can you expect once you get your referral marketing program? How much interest will the program generate among your customers, and what will the return on investment look like? Specifically, you need to funnel customers into the pipeline for successful referrals to come out of your program. With that thought in mind, your referral program needs to start with some strong promotion—similar to any other marketing program.
If you haven’t offered a referral marketing program in the past and are suddenly starting to offer one now, you need to tell your customers about it. As counterintuitive as it may sound, you need to market your marketing program.A good rule of thumb in digital marketing is that you need to create 10 or 15 impressions before your target audience will react to, remember, and respond to your marketing message.
You do want to make sure your customers see your marketing message, though, and the way to do that is sending that message in many different ways.
The more you do to get to that 10-15 impression zone, the better chance you have of getting customers to sign up for your program.
In turn, the more people you get involved with your referral program, the more you’ll get out of it in the long run.Once you have people in your referral program funnel, what sort of results can you expect in terms of successful referrals and ROI?


This question is ultimately the more difficult one to answer when it comes to predicting results for a referral program. Simple law of averages indicates that the more people you sign up for your referral program, the more referrals you will get. Studies show that even the top performing referral programs tend to enjoy a ratio of 2:1 (which is to say they get one new customer for every two referrals that are sent). For brand new programs or less established businesses, a 15:1 ratio might be more realistic to start with. As your referral program continues to grow (and as you continue to work out the kinks), you should start to see a better referral to customer ratio. The basic idea of a referral program is that you reward customers for referrals that bring new customers to your business. However, the nature of the rewards that you offer, the size of your rewards, who you reward, and when you deliver the rewards are all variables that can and do change from one program to the next. How you set up your rewards will depend on several factors that are unique to your business, including your industry, the average shopping cart size of your transactions, the amount of repeat business you tend to get from customers, your profit margins, the size of your business, and more.Are you at a loss for how to get started with sketching out a successful rewards program? There are a lot of different kinds of rewards that you can offer here, and all of them stand a pretty good chance at motivating your customers to start spreading the word about your brand. Discounts, coupons, gift cards, cash back offers, free gifts, free shipping, access to exclusive clubs or other special features, entries into drawings or other contests, and loyalty points are all rewards that can and do drive referral programs.
Your job is to figure out what will motivate your customers because the answer to that question can vary from one business to the next. Conducting surveys, studying buying behavior, or simply asking your brand ambassadors what they want are all good ways of figuring out what reward type is best.
A referral marketing program can be the lowest cost means of acquiring new customers, but only if you don’t spend too much on the rewards. To perform this calculation, figure out the monthly or yearly spending of your average customer, determine the average customer lifetime, and try to estimate your average up-sell.


You can use this information to calculate how much you will spend on different reward sizes over the course of your average customer lifetime. Obviously, you want to reward your customers for making referrals that earn you new You want to incentivize your referral program members to tell more people about your brand. However, you can also set up a double-sided program, where you offer incentives to both the person making the referral and the person receiving the referral.
For instance, to encourage a new customer to act on a referral, you might offer them a discount or a cash back reward for spending a certain amount of money at your store. Option A is to automate the rewards in such a way that they are immediately delivered when a referred customer shops at your store. Alternatively, you could offer a bigger reward for program members who successfully refer, say, 20 people.
Setting up different tiers of rewards for your program can help motivate your customers to become more active brand ambassadors. Once again, you’ll have to ask yourself what will motivate your In any case, wherever in the process you choose to deliver the rewards, make sure the delivery is done in a timely and efficient fashion.
Members will jump ship on your referral program if it is difficult for them to access and use their rewards, or if it takes days or weeks for you to process their referrals and credit their account with a reward.Stay Tuned for More Information on What Marketers Should Know about Referral Marketing! Check back soon for a third post on what every marketer needs to know about referral marketing.
Neil has 20 years experience in Product Management and Marketing at companies such as Glenayre, Infowave, Sierra Wireless, Contigo Systems and Contractually. He has also spent the last 30 years as a semiprofessional drummer and plays with a number of acts you’ve never heard of, but it keeps him off the streets at night.



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