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When it comes to expanding your clientele, it doesn't get much better than word-of-mouth referrals from existing customers to their friends—it's a win-win.
Referral marketing increases recognition around your business, the referring customer receives social validation for recommending something useful, and their friend gets a recommendation from a reliable source.
There are several referral software solutions available on the market that can help you roll out a successful referral program. However, choosing the right referral software with the right features for your business can be a bit daunting. That's why we've created this Buyers Guide to detail important considerations you need to make a final purchase decision.
Here's what we'll cover:
Referral software allows businesses to create, customize, launch, and automate their referral campaigns. It helps businesses tap into their satisfied clientele to encourage peer referrals by offering rewards.
Business users can analyze the return on investment (ROI) from referral marketing and optimize campaigns to enhance results. They can track metrics such as the number of existing customers registered for referral programs, average referrals per customer, and average conversion of referral to customer.
Referral program performance dashboard in Amplifinity
Different vendors offer different features in their referral software. Selecting the right tool for your business is easier when you know what the common features are and what they do. Here's an overview.
Referral templates |
Customize built-in referral templates and roll out final versions to existing customers, who can then forward them to their peers. Some solutions offer visual customization of content and language localization as well. |
Rewards engine |
Offer rewards or incentives to referrers. Customize incentives to suit specific referral marketing campaigns. |
Audience targeting |
Customize offers and referral content based on different audience segments. |
Activity dashboard |
View insights and performance of your referral programs and track metrics such as number of conversions and rewards or incentives offered. |
Actionable analytics |
Analyze referral campaigns to derive data-driven insights such as customer profiles, real-time activity reports of top referring customers, biggest influencers (or advocates), and top revenue drivers. |
Third-party integration support |
Integrate with other tools such as marketing or customer relationship management (CRM) for smooth exchange of data. |
Before you start evaluating referral software options, you'll want to know what buyer category you belong to. Most referral software buyers will fall into one of the below categories:
While some of the benefits of referral software may be clear from our discussion above, we've called out the most notable ones below:
Here are some important questions to consider before you purchase referral software:
Note: The applications selected in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.