Referral marketing is regarded as the most effective avenue for reaching out to new audiences, along with SEO and SEM. Through referral programmes, you may actively seek out high-value clients with the assistance of the people they trust most: their family and friends who have already developed a fondness for your brand. Even better, recommended customers typically have higher NPS and LTV scores, which makes them a priceless tool in your marketing arsenal.

These additional figures will motivate you to start a digital referral programme. According to estimates, referred clients include

churn 18 percent less frequently,

are typically 25% more profitable,

yield a 25% increase in LTV.

How should an API-based referral programme be implemented?

You might wish to start with a basic digital referral campaign that uses a straightforward formula, such “Recommend two friends and you both get 25% off the next purchase.”

To accomplish this, you must set up a referral system that will enable you to recognise existing customers who refer new ones (known as referrers) and the new clients that they refer (known as referees). Once you have this knowledge, your referral system must then issue coupons for a 25% discount to both groups

Examine the results of your referral programme.

Evolve has you covered if you want to run a short experiment like the one in our example. It offers you a dashboard that you can use to visualise and evaluate digital referrals in addition to the method for gathering them. Simply choose your referral campaign and look over the history of redemptions. This will provide you with a thorough overview of every consumer who has used one of your referral codes, along with information about each transaction.

There is no need to search farther if you want a quick way to determine whether your referral campaign is gaining traction. However, you can always use the built-in data export option, which gives you access to all the campaign history data and can be used in Excel or your BI environment, if you want to analyse the data in more depth.