5 Rules That Will Help Improve Your Referral Marketing Campaign

5 Rules That Will Help Improve Your Referral Marketing Campaign

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Consumer purchasing behavior has changed dramatically over the recent years. Social media has a great say in the purchasing decisions. In this era of Social media marketing, 90% of consumers trust the opinion of people they know over the band sponsored advertising. Referral marketing also known as word of mouth marketing has proven to be the best form of marketing and its popularity continues to grow.

The popularity of referral marketing

We all value recommendations from our friends and acquaintances more than paid messages from the unknown. Because referral marketing has so many potential benefits to offer, this type of marketing strategy can be customized to reach a variety of target demographics.




This allows your brand message to spread more effectively than with most other marketing channels. Trust goes a long way when it comes to convincing someone to buy something. With increasing popularity of social media, the reach of a typical consumer has reached far beyond.


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Companies who became successful with referral marketing:

Dropbox launched a referral program which not only lifted the company’s worth but also rewarded the customer with product based perks. The company went from 100,000 users to 4 million in just 15 months which increased the total number of signups by 60% percent.

Airbnb focused on attracting new guests with their referral scheme.

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Creating an effective referral program is the best approach marketers can adapt to tap into the power of consumer recommendations and achieve exceptional results

Here are 5 rules to improve your referral marketing. Follow these rules while setting up your referral marketing campaigns.

1)  Quality products that customers love:

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While referral marketing can prove to be best for marketing strategy, it all starts with the product. If your customer love your products they are more likely to refer it with their network. 

2) Time and frequency of your referral campaign

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In order to take advantage of referral marketing, you will need to launch your referral campaign at the right time, place and frequency.

3) Ease of use:

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Make sure that you are making it as easy as possible to share your products and refer your brand. You may even consider smaller but effective tactics like social sharing badges to every product page. Uber uses one of the strongest referral program which has resulted in its success.

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4) Experiment with different reward structure and choose the best:

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Even if you are successful in gathering a group of passionate and loyal customers, they may not be able to promote your brand without some sort of rewards.

Myntra’s Refer and earn program also known as ‘Look Good Together’ is an incentivizing scheme for both old and new customers whereby the former is allotted with a unique referral code. The customers can share this code with anyone. When someone downloads the Myntra application in his/her smartphone for the first time and enters the referral code, the both the referrer and the new customer will receive Myntra points that can be used while shopping.

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5) Personalization


Personalization is changing the face of referral marketing (in fact it’s changing the face of retail altogether), enabling retailers to leverage new customer acquisition on a whole new level, and stand out from competitors.

One example: Airbnb is recognized as one of the most successful app growth stories of our time. Why? Partly through personalization of their referral marketing program.

According to Airbnb, their initial program was under-performing and underutilized. However, once it realized the value of personalization and how to implement it, the company boosted sign-ups and bookings by over 300%

Have you been a part of any referral campaign? Do you know any other brands that uses the best referral marketing strategies. Like, share or comment below.

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