Word of Mouth is not something new in the market but it surely has come a long way! Many studies have found that people are likely to buy products/services four times more if it is recommended by their friends. We all do word of mouth in our day-to-day life, by recommending a movie, a restaurant or maybe a doctor to the people we know. Referral Program and Word of Mouth are very much alike.
Since we all know that the internet and technology has a powerful impact on the world. Everyone is going online be it, doctors or plumbers, so is word of mouth marketing. If we digitalize word of mouth it will be very much similar to the Referral Program Marketing. Referral Program is one of the trending strategies of the marketing that today every business wants to alter into their business [irrespective of the industry].
Many marketers are uncertain about adapting a referral program because they have a misconception that they are only meant for e-commerce. This is the blog, here you will know about how different industries implement referral program in their business and in what ways they are getting benefit out of referral marketing.
Before I begin with the examples of referral program regarding different industries let me first talk a little about the referral program and its benefits.
What is the Referral Program?
Referral Program is a process of rewarding your customers for doing word of mouth for your business.
Referral program helps business to drive out the profit that too at a very non-expensive way. The process in which referral program flows is quite simple. Customer enrolls to the referral program and then the referral link is generated which is then shared on the social platform by the customers with their friends. Once the friend of the referrer registers on your website via a referral link is known as the successful conversion.
Note: Successful conversion may vary from business to business. Such as for an eCommerce a conversion would be if the referrer’s friend makes a purchase and for a blogger, a conversion will be if anyone would subscribe to their website.
What are the Benefits of the Referral Program?
The benefits of the referral program are as follows:
- People trust the recommendations from their friends. Thus, increased sales and revenue.
- Referral programs are interactive and keep customers engaged. Thus, customer retention increased.
- Since referral programs are for online stores. Therefore, they become viral at a much faster rate.
- The referred customers are ought to be more loyal and stay for a longer period of time.
- Referral programs are consists of rewards which make customers demand more and this leads to higher engagement on the brand’s website.
- Referral programs help in increasing the market reach of the brands, which eventually help in gaining more social presence and ROI.
Now if you ask me what type of business should consider getting a referral program for their business I would say—ALL. There is no rule book which says that a set of industries could only get referral programs. All type of industries can benefit from it and have been getting.
Below are the industries which are enjoying the privilege of referral marketing see if you are one of them. If not no worries because we have something for you all too!
The most popular and emerging industry—e-commerce. E-commerce industries rule the marketing sector these days because everything and anything people want is online. From groceries to medicines, from clothing to electronics, everything has a place online. Also, referral programs are most popular in e-commerce because of the audience they have is much higher than of any industry.
Thus, online shopping stores invest the most in referral campaigns. Also, the rewards and incentives of e-commerce attract customers the most.
As I mentioned that Referral marketing has a firm grip in the eCommerce the sector. The larget discounts and rewards are offered in eCommerce. This is the referral program of Jaypore, a leading brand for women’s clothing. They are giving out the rewards cash prize to both the customers and their friends. (on successful referral)
2. Gift Store
There are many stores online that work solely for delivering gifts of their loved ones to the different parts of the world. The gift stores might have many other wholesale businesses that must be willing to partner with the gift stores. Thus, the gift stores can run a referral program for both customers and their business mates.
Floweraura is an online store for gifts. They deliver gifts for the people to their dear ones all around the globe. Their referral program is about offering a reward to the customers in the form of a coupon. They are offering coupons worth Rs.150 to their customers, which they can redeem on their next purchase.
3. Healthcare & Pharmaceuticals
There are many brands out there in the market who are offering healthcare and medicines to the world online. It is the need of the time to share healthcare online and make people more aware of it. The referral campaign can be either to sell medicines at a discounted rate, or it also can be to make subscribers for the ‘health awareness blogs.’
Healthkart is a place where people can get all the products and information regarding healthcare and fitness in one place. They have started a referral program in which they are rewarding Rs.200 on an invite to a friend. Also, the customer’s friend can avail of the same offer once they register with Healthkart.
4. Tour & Travels
Tour & Tourism is the industry which is equally famous as the eCommerce. Many people are travel crazy and love to travel for a discount. Many travel agencies reward their customer’s referral credit on every successful referral, which benefits them on going to a discounted trip.
Not to forget those travel agencies are linked with many other businesses too. Thus, getting a B2B referral program can be a good idea also.
Thomas Cook is a travel agency based in India. They organize and take care of people travelling to different places. Thomas Cook’s referral program is about travelling on a discount. They are offering vouchers worth 12000 Rs. to the customers and to their friends too. Their referral program is very detailed, and it can leave their customer is no doubt. This is how every referral program should be like with all the steps mentioned.
5. Hotels & Restaurants
One of the most competitive industry in the market. The restaurants and the hotels business requires a lot of extra effort to make themselves better from each other. Word of mouth is very common in this industry but getting people to recommend your services via social media is something that everyone should consider.
Chimcard is a Thailand based company which provides access to exclusive discounts on different restaurants and hotels. They have made a referral program in which they are offering their members a special card for availing the discount.
6. Academic & Education
Education industry should implement referral marketing as referring someone to a reputed institution is always a good deed. Therefore if any organization is starting a campaign they can get good leads and they can expect a great market growth.
7. Banking & Finance
There are many who doubt the existence and the success of the referral program in the BFSI sectors. But there are several banks and financial institutions that have integrated with the referral programs.
Especially a mortgage CRM helps in this program by enabling personalized communication with past clients, making it easier to request referrals, track interactions, and manage follow-ups, to enhancing the effectiveness of referral campaigns. Banks can offer their customers exciting rewards on each friend they refer to open the account in the bank.
This is the referral campaign of HDFC Bank. They are rewarding their customers with BookMyShow Movie voucher on every successful referral they make. Their campaign is simple to understand and contain fewer form fields (which is a good thing.)
Consultancies are usually there for helping people with jobs and other services. It is not necessary that there must be some reward included in the referral campaigns always. People can refer their friends to the consultancies so that they can avail the services too.
9. Movie & Entertainment
What is the first thing you do when you watch a blockbuster movie or watch a mind-blowing show? You tell your friends first, right? This is how the referral campaign works for such OTT Apps. PVR cinema and Netflix get the best benefit from it. The Referral can earn customers discounted tickets or subscriptions of a movie. Thus, referral marketing is a big hit in the entertainment industry. Everybody loves entertainment at a discount.
This is the referral campaign of Tata Sky. They are a direct broadcast satellite provider of satellite television in India. Tata Sky is one of the leading entertainment and television broadcasting brand in India. They have a very detailed referral program, and every step is explained in clear steps. Tata Sky is offering two-way gratification, to their customers. They are rewarding Rs. 300 and a special offer to their friends.
Two-way gratification is one of the best ways to engage both customers and their friends.
10. Fashion & Beauty
Fashion stores are like e-commerce stores. They sell beauty products and grooming services. Such types of industries make happy customers, and satisfied customers mean a bag full of referrals. Many brands send give out rewards such as vouchers and coupons for discounted services for their customers.
Nykaa is one of the leading beauty brands in India. They sell beauty products and other fashion apparel. Their Referral program is about–refer and earn. Nykaa has its campaign only running for mobile applications. The gift voucher they are offering is up to Rs.1000, which attracts the customer the most.
11. Automobile Industry
Buying a car or any automobile is not as easy as a walk in the park. Purchasing an automobile requires much research, and if the purchase comes with a discount or a reward, it is a cherry on the top. Referral Program in the automobile industry can be beneficial for both the buyer and the referee, aka the referred customer.
This is the referral campaign for MylesCars. Mylescars is an automobile brand that provides cars to people on rent. They have started a campaign which says ‘Friends with Benefits.’ On every successful referral, they are offering a coupon worth Rs. 600 to their customers. They have a floating refer & earn button on the landing page of their website. Their referral program is simple and easy to understand.
How to Start a Referral Program?
Implementing a referral program to your business is like a cake-walk. All you need to do is to contact a referral software provider. They help in creating engaging and interactive referral campaigns for your business. The integration, the creation and the technical work are all on the software providers.