Do Referral Software Solutions Drive Revenue and Advocacy for eCommerce? [9 tips]

 Do Referral Software Solutions Drive Revenue and Advocacy for eCommerce? [9 tips]

Referral programs fail for 90% of eCommerce companies.

We’ll show you how to add marketing agility for your team if you’re not getting the performance you need from referral marketing.

Learn from our experiences across 1,000+ brands.


Why do referral programs fail?

The value of customer loyalty is not just in the frequency of their purchases. Loyal customers are valuable because they are advocates for your brand. Having a trackable, incentivized Refer-a-Friend solution helps brand advocates spread the word about your products. In turn, they help influence new customers.

"How do I choose a Refer-a-Friend provider?"

To understand what you do need, here are a few 'buyers guide' questions to ask Refer-a-Friend providers to get yourself started in the right direction.

  1. Is the Refer-a-Friend program fully customizable?

    Will you have full control over the look and feel of the referral widget that you embed into your site? Does it integrate with your brand standards?
     
  2. Can the provider get your referral program launched in less than 30 days?

    The ability to go from idea to execution is a process that can take months or even years -- especially for referral programs. A quick Refer-a-Friend program launch can save you valuable time, opportunity cost, and help you stay ahead of the competition.
     
  3. Does the Refer-a-Friend program integrate with your email service provider?

    Integration with your email service provider (ESP) is a key feature that will keep your brand experience cohesive.
     
  4. Can you fully customize the Refer-a-Friend emails?
     

    When you launch a referral program, will you have full control over the emails delivered as part of the program? Can you maintain consistent brand standards in both the design and content of your emails?
     
  5. What fraud preventions are built into the Refer-a-Friend software?

    Does the software include safeguards to prevent against customers gaming the system and receiving rewards that they do not earn?
     
  6. Has the provider worked with both large and small companies?

    Can they work effectively with your team? Do they have experience with servicing a company of your size? This is an important factor (that many companies overlook) in evaluating how well a provider will be able to partner with you.
     
  7. How does the provider protect your customers’ privacy?

    Make sure that keeping your customers’ information safe is a top priority. Be sure to ask each provider what components they have in place to safeguard any customer data collected for the referral program.
     
  8. Is the provider’s technology hosted on a global content distribution network? Will it slow my site down?

    Make sure that your referral program will be accessible without any noticeable lag or slow load times. If you have customers in multiple countries, be diligent with this point.
     
  9. Does the provider offer multi-tenant access and permissions control? Do they offer support for multiple websites, languages, and currencies?

    If you’ll be having multiple team members work on your referral program (like designers, copywriters, analysts, etc), make sure the provider you choose can set up accounts for each member that needs access. In addition, make sure the provider can support every region that your customers live in.
     
  10. What types of offers are supported?

    You'll want the flexibility of multiple types of offerings. Offer types like single use coupon codes, gift certificate support, BOGO, exclusive news, automatic codes via API, monetary or percentage discounts, tiered offers, cross-sells and/or upsells, limited time promotions/events, free shipping, etc.

    Strong incentives and personalization make for a quality referral program. Increase advocacy with a personalized experience, like including the shopper’s name. This helps them build a unique relationship with your brand. In fact, the 2016 consumer loyalty report notes that 44% of consumers prefer appreciation conveyed in a personalized way. 

    Additional results pulled from the Addshoppers Platform helped our team identify that 1:1 personalized offers drive 9% more revenue than generic (non-personalized) offers. This proves that shoppers respond to personalization. 

Schedule a Google Analytics review to see how a referral program will impact your KPIs.


Real client examples of successful Refer-a-Friend Programs

The AddShoppers Platform is an all-inclusive on-site experience. Our client’s customers interact with an easy, smart, personal, and consistent, user experience. AddShoppers’ marketing methodology is setting a new standard strategy for pushing browsers into buyers, buyers into customers, and customers into brand advocates. 

1. MiiR is an outdoor gear company whose products purpose is to empower others and build community. 

They use the AddShoppers experience to host their Refer-a-Friend program. Miir chose AddShoppers’ referral solution instead of an alternate advocacy software vendor because all our Apps are integrable. 

Navigate the full experience on miir.com

 

Navigate the full experience on hanes.com

2. Hanes has been a long-time user of AddShoppers’ Refer-a-Friend program. 

This referral program is a significant source of AddShoppers assisted revenue for the brand. It has helped generate word-of-mouth traffic and brand awareness.


Our 2016 benchmark report uncovered that it only takes 4 Refer-a-Friend shares to generate 1 sale.

Read more G2 Crowd Review Platform reviews
Shopping cart abandonment has dipped, we have been able to collect a large number of new email subscribers, and have been able to get the word out about our business via the refer a friend program
— Jaime Sanford, Marketing Manager at 6 Pack Fitness

Our solution works with ANY platform. Here are a few featured partners:

  • Demandware
  • Shopify
  • BigCommerce
  • Magento
    • custom built platforms

Our solution works with ANY email service provider. Here are a few featured partners:

  • Bronto
  • Listrak
  • Mailchimp
  • Klaviyo
    • custom built platforms

Referral Program Frequently Asked Questions [Help Guide]

  1. "What kind of increase can I expect to see from a Refer-a-Friend program?"
    1. Standalone RAF solutions deliver 1%-3% revenue impact with
      declining YoY impact.
  2. "What results have other brands seen from AddShoppers programs?"
    1. With innovative customer experiences (e.g. RAF), RAF + AddShoppers increases site revenue by 10-20% YoY. 
  3. "How does a referral program work?"
    1. Refer-a-Friend programs are designed to build brand awareness and spread brand advocacy. So, referral programs work to generate new business for brands through customer incentives. People love to share their favorite brands with their friends, so referral marketing programs are an easy way to have customers do the legwork of word-of-mouth marketing.
  4. "How do I refer-a-friend?"
    1. This is dependent on how your referral program is set up. Customers can refer their friends through email or social network sharing. 
  5. "Do I even need a singular Refer-a-Friend program in the first place?"
    1. You don't want a single tool provider.Referral program features can't overcome the reality that many users won't know you have a Refer-a-Friend program if they have to dig deep on your site. You want a referral solution that integrates with all other marketing campaigns.
  6. "What are top 5 best referral offers?"
    1. 2 sided Refer-a-Friend, Social Reward, Social Sharing Sweepstakes, Instagram Sweepstakes with Referrals, Multi-step Social Reward.

Find out how AddShoppers' integrated referral solution like can work for your brand. Let's talk data.