We have been looking at various ways of using WhatsApp to keep in touch with your customers. WhatsApp is a chat app par excellence when you need to connect more organically with your customers.

But what if we told you, it can do more? What if we told you that with WhatsApp you can keep in touch with customers as well as reach newer customers with the help of your existing ones, both at the same time?

Yes! We are talking about referrals. In this lesson, we will talk about employing WhatsApp for referral marketing.

What is Referral Marketing?

Referral marketing is where you incentivize your customers for referring your business to new people. You are leveraging the trust you built with customers, customer psychology, and in some cases, mild gamification to grow your brand.
When new customers join via referrals, the referrer gets a reward which can be anything, varying from a small gift to a discount coupon. You provide value in exchange for helping you expand your customer base.
Compared to customers acquired through traditional methods of marketing, customers that are acquired through referrals have a 16% higher lifetime value. Referred customers have also impacted better retention rates, showing an increase of 37%, making referral marketing very beneficial in the long run.

Benefits of Referral Marketing

Referral marketing is an exceptional system with great potential when it comes to customer acquisition. Some of the benefits of referral marketing are:

– Improved Retention Rates: Word-of-mouth and referral strategies show improved retention rates.

– More value from new customers: Referred customers offer value and come to you with a positive perception of your brand. They are more likely to convert to loyal customers in the future.

– Leverages trust: Referral programs use social proof and trust which makes them more legitimate, trustworthy, and appealing to customers.

– Increase Awareness: Referral programs are a great way to increase brand awareness and reach wider audiences.

– Potential for viral growth: Customers who get referred to a business are more likely to further refer others, which brings in the possibility of exponential growth for the business.

– Cost-Effective Technique: Referral marketing is also one of the most cost-effective strategies out there.

How to Use WhatsApp to Get More Referrals

Step 1: Segment Existing Customers and Subscribers

To ensure that you reach a wider audience with your WhatsApp referral campaign, the very first step you need to take would be segmenting existing audiences.
Divide existing customers and subscribers to easily reach out to the people who have bought from you. Customers who have purchased from your business and have a favorable opinion, are the ones needed for the referral campaign to pull in better results.

Step 2: Set up Broadcasts to Promote Your Referral Program

Set up a WhatsApp broadcast campaign to reach out to your existing customers and promote your referral rewards program.
Include precise info about the referral program, clearly laying out the value and benefits of taking part in it.

Here are a few examples of WhatsApp broadcast message templates for promoting referral programs:
“Hey! Thank you for trusting us with purchases. Did you know you can win a 5% discount on your next purchase by referring us to a friend?”
“Hi, there! We hope you are happy and satisfied with purchasing from us. Refer a friend, spread happiness, and get a 25% discount on your next purchase!”
“Hello! Loved our products? Spread the word and get a discount coupon worth Rs.100 with each referral.”
“Hey there! This is to inform you that we love doing business with you. Here’s a chance to win a 30% discount by referring us to a friend.”
“Hello {NAME}! Thanks for choosing us for your Pastry needs. Refer a friend and get a tasty 25% Off on your next purchase!”

To set up WhatsApp broadcasts without hassle, you could use a WhatsApp Business API service provider like Interakt, which will greatly simplify the process.

Step 3: Send a Follow-Up

If any customers are not taking action or responding to the broadcast messages, send a quick reminder, or provide a time-sensitive discount on it. FOMO is a handy tool and employing it in the right way often influences action. Here is an example:
“Hello there {NAME}! Refer a friend in the next 48 Hours and win a discount coupon of 35% right away!”

Here too it is ideal to use a WhatsApp Business API solution provider like Interakt to set up personalized follow-up broadcasts. The automation ensures that the follow-up goes out in a timely manner.

Step 4: Keep them Updated
The customer should be duly updated on any development in the referral program that is relevant to them.
When customers do make a successful referral, don’t keep them in the dark. Send a message to let them know of it, and convey what they have received in return.
The incentive could be store credits, discounts, gifts, or anything that has value to the customer. Subtly reminding customers about the incentives they have won, encourages customers to participate more in the program. Take a look at these examples-
“Hey {NAME}! You just won your Referral Reward Coupon worth Rs.200! Redeem at check-out!”
“Hello {NAME}. You have earned 50 reward points from your last referral! Redeem them with your next purchase!”

Step 5: Request Feedback
Often request feedback from those customers that refer others and engage with the referral program consistently. This will provide deeper and more valuable insight for improving the referral campaign.
“Hey {NAME}! Hope you are having a great day. We are always looking out for ways to improve customer experience. We would appreciate it if you would share your thoughts on our referral program.”
“Hello {NAME}! Here is your 30% discount coupon for referring us to a friend. How do you like our referral program? Send us feedback.”

Don’t Wait Up to Grow Your Referral Program!

Having a referral program without people knowing about it isn’t going to do much for your business. People need nudges to initiate action.
To steadily grow your business and reach a wider audience you need to actively promote your referral program. And a simple, strategic solution to do this. This is where Interakt can help.

Set up your referral program on WhatsApp with Interakt.