You’ve started a referral programme, then. Despite how great the marketing went, is there still a conversion that has to be made? It sounds like you? If so, keep reading to see how you may change this by utilising double-sided referral networks, a strategy adopted by international behemoths like Uber, Airbnb, or Dropbox. ‍

Consider employing a single referral campaign to enhance both new acquisitions and retention rates. Positive, yes? A two-sided campaign has an advantage over rivals who only use traditional referral marketing.

In a normal referral programme, you provide your referrer a reward in exchange for a reference, such as 25% off the following transaction.

The incentive is split between the referrer and their friend during a double-sided referral campaign. For instance, your customer receives a gift card for a buddy with $10 to spend at your store and 15% off their subsequent purchase.

Customers of your business are inclined to spread the word. It’s an opportunity to bestow actual value to friends or family members with a gift card or coupon code. Additionally, referred clients are more inclined to follow word-of-mouth if there is an incentive in place.

double-sided gains or double-sided costs

Despite the fact that you must pay rewards to both referrers and customers, such campaigns are profitable. Finding a balance is key to the double-sided referral program’s economics. Since you offer a small discount to referrers, it doesn’t take significantly additional resources.

For instance, instead of offering 25% off, you could give new consumers 15% discount and an extra $10 on a gift card.

Similar to every promotion plan, you must first estimate your budget, establish any necessary campaign restrictions, and thoroughly examine your sales statistics. You may choose incentives with the best conversion chances by conducting thorough study. Last but not least, you must confirm what your programme is capable of and ensure that you have a suitable infrastructure in place.

There are two tiers to a referral programme, but the workflow is consistent.

You must bear in mind two things while you discuss the technical options. First of all, two distinct incentive batches are needed for these initiatives. The simplest component is this. When it comes to integrating two levels into a single, traceable procedure, things become more challenging. The fact is that it cannot function without automatics. At least three fundamental endpoints must be under your control (or under the control of your software):

How many referrals are made by a single customer?
If every “new” customer who attempts to use the code is indeed a brand-new one in your database?
Should a referrer receive a reward if a new customer uses a code?

Usually, things are far more complicated. Every programme requires regulations based on deadlines, cart volumes, or financial restrictions. Every redemption is therefore preceded by a sophisticated vetting procedure. You must confirm that a consumer satisfies all requirements. Without referral levels synchronised into a single, reliable system, you leave yourself up to abuses and fraud.

The referral monitoring feature is what sets good referral marketing software apart. It ought to be able to collect information from every endpoint. These statistics are essential for detecting fraud and determining what is effective and why. Remember that the only way to improve is to analyse consumer behaviour and programme effectiveness.

The dual impact of a gift

Free balance is the ideal reward for consumers who suggest others. You can experiment with psychological marketing while maintaining your financial security. First, a free balance offers a potential consumer the impression that they have money in their hands. Second, buyers don’t have much time for hesitations when a card has a short time restriction. According to research, marketing perform substantially better when there is a sense of urgency. Gift cards also make “giving” safe for your financial situation. The balance is lost if a customer doesn’t make a purchase at the appointed time. There is no chance of additional expenses.