Have you ever purchased a product or a service based on someone else’s recommendation?
You probably have.
I remember the first web host I chose was SiteGround. The only reason I went for it was because it was highly recommended by a close friend.
In this post, I’ll show you what you should look for in referral marketing software.
Before I dive in, let’s look at the importance of referral marketing and whether you should consider investing in referral marketing software?
Why Referral Marketing?
When it comes to increasing your customer base, referral marketing can work wonders.
If you love a product, you might tell your friends about it, and they may share your experience with others, increasing its popularity.
As more and more people use your product and refer it, it helps you establish a brand.
According to Nielson, 92% of customers trust recommendations from friends and family. B2B companies that use referrals tend to have a conversion rate of more than 70%, and their closing time on sales increases by 69%.
Referral programs work well for consumer brands and brands aimed at small businesses. This is because there is a single decision-maker that needs to get influenced to make a purchase.
Referral marketing is the only type of marketing that can further drive to a purchase without much research.
Why Go For Referral Marketing Software?
A lot of marketers manually list affiliates and give them incentives for every referral customer.
Now, if your customers have a lot of referrals, it won’t be straightforward to keep track of the customers they are bringing in.
Without having suitable software, your customers will not be able to view how many referrals have subscribed to your product, how much they have earned, or when they can expect a payout. It will end up creating a mess for you and leave your customers frustrated.
Utilizing referral marketing software, you can give a referral ID to people who sign up for your program and give them incentives on auto.
Any business can use referral marketing software to set up and manage their own referral programs to take their business to the next level.
What to Look for in Referral Software?
While there are many referral marketing programs out there, I highly recommend taking the following factors and features into consideration before choosing one.
1. Cost
You may have found fantastic referral software, but you definitely don’t want to go over your budget in purchasing it.
I highly recommend comparing the features and pricing of referral programs before making a final decision.
Most programs offer various plans with different limitations. So it’s a good idea to check what each plan has to offer.
2. Trial Period
Ever purchased an item and ended up regretting it later. Well, I certainly have.
Before purchasing referral software, you should consider testing it out first. I prefer going for a risk-free option that doesn’t ask for credit card details or PayPal email.
It’s great if you can download a limited version of the software without giving out payment details. After that, you should seek out an online demo without making a payment. Then you can make a decision if the software suits you.
3. Integration
Your referral software must be compatible with the programs you already have. Let’s suppose you have a sales team that uses CRM (Customer Relationship Management) software.
If it’s cumbersome to integrate the referral program with your CRM software, then it may cause problems.
I recommend making a list of the programs you are using and then look for a solution that is known to be compatible with your existing applications.
4. Customer Service
We all know the importance of excellent customer service.
To ensure the company you are purchasing the software from, doesn’t abandon you once they make the sale, read independent reviews. And don’t just look at the testimonials on their site.
You want the company to help you out during installation and be there in case you need any support later on.
5. Scalability
The software must be able to meet your needs as your number of clients increase. You should be able to control any changes made in the program.
In case you need to remove or add something in the software, you must be aware of the impact of making those changes.
6. Customization
The referral platform should be compatible with your business needs and goals. You should be able to customize the software in a way that is suited to your business.
It is essential to ensure that notifications, incentives, and messages can be customized according to your requirements.
7. Support for Contests
If your referral marketing software doesn’t support contests, you don’t really want to go for it.
Competitions help to generate more traffic. Your platform should have a feature where you can customize your campaign into a contest.
8. Incentive Options
The more reward options your referral software has, the better it will be for you.
The reward options can be of various types, such as free stuff, discount codes, cash, etc. So before you choose your platform, make sure it includes plenty of reward options.
9. Multilevel Support
I think it’s absolutely fantastic to have the multilevel option in referral software. Let’s suppose person A refers person B, then A gets a reward once B buys the product.
What if B refers more people? In that case, will person A also get a reward?
That is possible if your software has a multilevel option. It encourages people to get their referrals to bring in more customers.
10. Email Marketing
This is a must-have feature. Utilizing it, you can easily send updates to your affiliates and referrals. Moreover, you can target potential customers by sending them personalized or auto-generated emails.
Even though there are various marketing channels out there, email marketing still plays a significant role as its inexpensive and yet the most utilized communication medium with more than 3.9 billion users.
To sum it up, the right referral marketing software can give you a good marketing ROI and help build brand reputation. So you should take your time before investing in one.
