The Power of Instant Rewards
Let’s do a little experiment. Imagine you are given the opportunity to recommend a favorite product/service to a friend and be rewarded for this recommendation. You are even more likely to make that recommendation if you are given the opportunity to gain something from it, right? Now imagine that the reward is instant – you send a recommendation, and receive your reward straight away. Be it a discount code, a coupon or an additional product, it is very likely that you will opt to recommend the product/service as soon as possible, knowing that you will be rewarded the very second the reference is sent. This logic applies to the majority of people, and is something that InviteBox takes into account when designing and improving our customized referral program.
The Essence of the Reward
There are various referral campaigns to choose from, but the simplest (and often most effective) choice is the system of instant rewards. Not only is it attractive to customers, but very beneficial for your business – building trust with existing customers and reaching out to new ones at the same time. The key question that remains – what reward to offer?
First, start by analyzing your main offer – what are you selling? If it’s a tangible good, one of the best options is to reward customers by gifting them with an addition. Let’s say your company is selling hairdryers; a customer just sent referrals to several of their friends and is expecting to receive something in return. A good choice would be to provide them with a styling extension, or possibly a hair brush. You could also opt to give a discount on further purchases, encouraging the customer to make another purchase in a shorter period of time, since the discount is instantly sent to their account after they send the message. Not only does this encourage happier existing customers, but also attracts future ones via their friend’s referral.
Likewise, if you are providing a service, such as a lifestyle advice website, you may offer to unlock some additional pages as soon as the referral is sent. Once again, the user is more likely to refer the service to a friend if they know that they will be provided access to exclusive materials which they would not be able to view otherwise.
No More Sneakiness
But what if the customer decides to cheat a referral program, and makes fake accounts to receive the reward. If you ask us, the possibility of them putting in the effort to do so significantly falls if the reward a pleasant addition instead of a whole new offer in itself. That way, customers will be encouraged to refer others but not to the point where they will go through all the hassle to cheat the system in order to obtain a whole new product.
Get More Traffic
Do you have a blog, an online store, SAAS or any other business? If so, you are likely to have higher traffic set as one of the main objectives for your website. With instant reward referral programs, you can achieve exactly that! Unlike traditional referral programs, which require waiting time (since rewards are granted for leads), instant reward programs offer smaller rewards in exchange for instant gratification. A viral promotional message with an eye-catching image posted on Facebook can bring over ten clicks on average, but how much are you willing to pay for these clicks if it is a paid advertisement? Sometimes, it’s more cost efficient to rely on a referral program to take care of your traffic. Whilst InviteBox provides the opportunity to send email referrals and includes other personal channels, the most efficient ones for instant rewards are usually social networks such as Facebook or Twitter.
Instant Is the Way to Go
Although traditional referral rewards (i.e. the ones granted for leads) are often viewed as safer, relying on only this type of reward can actually decrease the number of referrals sent. People like instant gratification, and, sometimes, the best way to grow your customer base in a short amount of time is to provide them with an immediate reward. Make sure to check out our Instant Reward Campaign and see what kind of instant rewards you can provide your customers with in order to really boost the number of people interested in what you have to offer. And remember – it’s all about the psychology!