What is it? A referral program is a mutually beneficial cooperation between business and clients. The company will give bonuses if a person invites his friends to buy a promoted product or participate in a promotion.
How is it done? The business thus increases the customer base. The referral (inviter) receives a percentage of the profit from the attracted people, and they in turn receive pleasant bonuses. Everyone ends up in the black.
The article explains:
The essence of the referral program
Objectives of referral programs
How the referral program works
Who are referral british student data package programs suitable for?
Types of Referral Programs
Advantages and Disadvantages of Referral Programs
Common Mistakes When Launching Referral Programs
Examples of good referral programs
Frequently asked questions about referral programs
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The essence of the referral program
Referral program – what is it in simple words? Let’s figure it out. According to the Nielsen Global Trust in Advertising study, “Recommendations from people you know” are considered the most reliable form of advertising. 83% of respondents trust this type of presentation more than others.
In second place are “Customer opinions posted online.” 66% of respondents decided in favor of reviews, overviews, and comparisons.
At the same time, advertising on television, radio, newspapers and social networks inspires less trust among consumers (its level varies from 36 to 47 percent).
Modern users rely on the opinions and experiences of others when making a purchase decision. They especially trust friends, acquaintances, and influential people from their circle. There are several reasons for this:
the opinion of a loved one is clear and understandable;
he does not impose hundreds of goods and services every day;
it is not profitable for a friend to “palm off” things - he is simply sharing a recommendation;
the friend personally used the product or service and did not write bribed reviews.
A referral program helps companies attract new customers and rewards partners for their participation. Most often, partners are existing consumers. Rewards can be in the form of money, discounts, bonuses, and other benefits.
For example, a user can send a link or a promo code to a friend, and the new client will receive a bonus for registration. But that's not all. The referrer will be thanked for participating in the form of money, discounts, or other rewards.
The one who recommends using a service or service is called a referrer, and new clients are referred. Referral programs are used by banks, online stores, marketplaces, cryptocurrency exchanges, airlines, educational platforms and other enterprises. The main reason for this is that recommendations are trusted more than intrusive advertising. For enterprises, this is a cheap and easy way to attract new clients. And in terms of costs, only a small percentage of sales. Partners also benefit - the opportunity to earn a stable passive income without much investment.