Ismail Mechbal

Best Practices for Referral Marketing

23 September 2018

Key facts

  1. People are 4 times more likely to buy when referred by a friend.
    Due to the factor of the internet where more and more content is created, referral is becoming more valuable as it’s a way of cutting through the noise.

  2. 92% of consumers trust referrals from people they know

  3. 82% of employers rated employee referrals above all other sources of generating the best return on investment (ROI).
    Considered to be one of the best cost/quality technique of hiring with highest retention.

What happens if you don’t start a digital referral program?

You could miss 40% to 80% of your potential referrals.

A Digital tool will empower your user to promote your brand.

Comparison of the old way (Analog referrals) vs the New way (Digital referrals)

Analog referrals aka The old way

Rely on memory

Expect your customers to rely on their memory.

Require conversations

In the example of employee referral program, after an interview you ask the interviewee if he knows someone who can be a good fit at this position.

Track manually

A manual process using a tool like a spreadsheet.

Scale slowly

It’s requires manual work and scale slowly.

Digital referrals aka The new way

Create digital ambassadors

Create digital brand ambassadors who are able to share their stories on social media, blogs and text.

Enable social sharing

Scale out the number of people they can reach.

Automate tracking

Track the results of the referral program you are running.

Scale rapidly

Scale rapidly by removing the real-time in person conversations.

Why implement

The basics


Brand ambassadors

Customer/promoter who will share your product with friends.

Referral leads

New lead of customer referred by a brand ambassador.

How it works

  1. Invite brand ambassadors

  2. Give brand ambassadors a unique link

  3. Create a dashboard for ambassadors

  4. Tell them how to share your program

  5. Watch your sales from referrals grow

How to launch

Step 1: Goals & Metrics

Step 2: Platform selection

Find a referral software partner or hire a development team.

Step 3: Build

Step 4: Go Live

Step 5: Insider secrets

SEO Benefits


Q- Is Referral marketing the same as Influencer marketing?

A- It’s not exactly the same, some influencer might take advantage of your referral program

This article is a summary of David Folwell presentation

Watch the presentation

← Back to all articles