Here's a handy list of incentives to help you think through your your referral program strategy. We'll add some brief comments to help you think this through.
- No incentive - Yep, this actually works really well. Sometimes your product is so interesting, folks will want to simply spread the word. And you'll want to track referral performance (sign ups, conversions) with the Friendbuy platform. Even if you know for sure you want a referral incentive, it's worth considering a non-incentive program to collect baseline metrics.
- Single sided - This is an incentive for the sharer with no incentive for their friend (the referred visitor).
- Two-sided (a.k.a. double sided) - This type of program has a referral incentive for the sharer and a conversion incentive for the visitor.
- Loyalty points - If you have an active loyalty program, you can offer points to users who refer friends.
- Cash - Particularly useful if your company has a low Customer Lifetime Value (LTV).
- Store Credit - Particularly useful if you company has a high Customer Lifetime Value (LTV) like subscription businesses or where your customers come back and buy often.
- Coupons - The cousin of store credit.
- Gift - Can be used if you offer physical premiums like tote bags or have partnerships with third parties who want to give your customers a free trial of their product or service.
- Donation to Charity - Your company can donate to a charity for every friend your customers refer. A great branding strategy.
- Access to special content - Really great for companies that offer white papers or other tent pole content pieces.
- Access to special features - Give customers who refer friends an upgrade. Great for SAAS and web-based apps like games.
- Special events - This can include virtual events or on-the-ground galas.