Different Kinds of Referral Programs

As a professional, entrepreneur, or small business owner, it makes sense to try to open as many avenues for revenue as possible, and referral programs are no exception.  In fact, referral programs garner a higher success rate than many other sales avenues depending on the type of industry you are in.  Whether that means enrolling in a referral network, creating your own co-op or huddle, or simply joining an online referral system, referred customers are some of the easiest to convert into sales.

Facts About Referral Programs

Here are some interesting referral statistics and facts from extole.com:

1. Customers that are acquired through referrals have a 37% higher retention rate.
2. Referred customers have an 18% lower churn than customers acquired by other means.
3. You can expect 16% more in profits from referred customers.
4. Customers who are referred by friends or family are four times more likely to make a purchase.

In fact, three advantages brought by referred customers include them being more loyal, having a higher lifetime value (HLV), and having a higher spending rate.  All things considered, what are the different kinds of referral programs available for local businesses and professionals?

Different Types of Referral Programs

1. Direct Referrals

Some of the best advertising your business can receive through this method are cost-effective and powerful.  Whether you are receiving referrals from business partners, or customers, the best is receiving them from brand ambassadors.  You know, the people who sing your organization’s praises.  Having a compensation plan in place for them may help keep them engaged and keep them referring as well!

Another way you can generate direct referrals is to join a referral-based organization.  Professional or business networking has been an integral part of a lot of professional’s marketing plans.  Joining as a We&Co member not only grants you access to the member portal but places you within a small group of your ideal referral partners who aim to grow their own, as well as your, book of business.  Click here to find out more about how to become a We&Co member.

2. Email Referrals

Email marketing campaigns, including drip campaigns, happen when customers earn rewards by referring friends.

3. Incentive-based Referrals

Incentive-based referral programs encourage customer loyalty via receiving rewards.  If you really want it to work exponentially, give incentives to both those who gave and received the referral.

4. Referrals from Reviews

When a customer leaves a review on google, yelp, FaceBook, or some other platform, it isn’t just wise to reach out and thank them, but offering them a code, discount, or freebie for their review will entice loyalty.

5. Social Media Referrals

As technology changes, so does the ability to reward your clients and customers.  As a customer tags you in a post, or shares your content and/or photos with other, sending them an offer or a thank you goes a long way!  Typically, it can encourage more and more potential customers to not only follow you but interact with your organization’s posts.

In summary, there are several ways you can initiate and execute a referral program for your business.  Finding which avenue works best for you is half the battle (or half the fun depending on how you look at it).  Our recommendation is to try them all!

About We&Co and The We&Co Huddles

We&Co is a professional co-oping & professional networking business that was founded in Springfield, Missouri in 2020.  While there are many professional networking groups in and around the United States, We&Co focuses on creating small industry-specific groups with five to ten professionals who all have the same target audience but offer different products and services.

In essence, professionals come to us when they want to save time while making more money.  These industry-specific groups are essential pods of professionals surrounded by their ideal referral partners.

These small groups of referral partners (called “Huddles) meet up twice a month for an hour and talk strategy on how to become that one-stop shop for their clients.  If you are a professional who is interested in joining or launching your own We&Co co-op (or “Huddle” as we like to call them), feel free to set up a 1-hour complimentary consultation here and set YOUR meeting on the calendar.