MAKE ‘EM TALK! Reward your best customers for gushing about your brand, and (you both) win big!

SITUATION 1

We love gushing about the new pair of sneakers we bought, the road trip that blew our minds, or the new dinner joint where the chef took us straight to food heaven. What happens if we got a gift card, cash-back or branded merch swag, every time we gushed? We’d gush even more. On the phone, in the car, on insta. 

SITUATION 2

In an age of fake news and rising mistrust, how do we really know we are making the right decisions – be it our choice of fashion label, holiday destination, restaurant or anything else? We turn to people we trust. We listen to what they’re saying, take note of tips and cues they’re dropping, follow their footsteps. And what happens when they gush about a brand they have recently discovered? Subconsciously, we too begin to feel an attachment to it. It slides into our consideration set, ever so sneakily. And in a vulnerable moment of overwhelming curiosity, we end up giving it a shot, becoming a customer. And what if we like it? Chances are, we will gush about it. On the phone, in the car, on insta.

Noticed what just happened there?

Yes, we stepped into a cycle. One carefully set up by a marketer somewhere. By doing so, we activated a loop, exactly as per the plan. It’s called the loop of trust, the strongest currency in business. Smart marketers are masters of building advanced versions of these trust loops. They call it referrals. 

Welcome to influencer loyalty marketing. Same thing.

WHAT IS INFLUENCER LOYALTY?

Influencer loyalty can be described as a low-cost, high-ROI method of incentivizing previous customers to create new customers via word of mouth marketing. The existing customer drops a ‘good word’ about the product or service with family, friends, or people on social media who might be interested in the brand experience. Both the old and the new customer is ‘remunerated’ for their gesture with a suitable benefit or bounty.

WHAT IS THE CONCEPT DRIVING INFLUENCER LOYALTY IN BUSINESS?

Influencer loyalty, also called referral loyalty, is the strategic and structured business practice of motivating satisfied customers to recommend their brand to friends and connections, and enticing new users for trying it. It helps in increasing sales and customer base.

Trust brings old and new patrons together, while rewards on both sides provoke ‘last mile action’ to bridge interest and action. It's a win-win-win for everyone. Current customers enjoy the idea of a ‘free gift’, new customers are excited to discover the brand with a handsome discount, and marketers are elated to expand brand awareness organically – considered the most authentic kind of growth and the one most difficult to master.  

WHY IS IT CALLED INFLUENCER LOYALTY?

Since it seeds loyalty into new markets through the referrals of existing customers who act as de-facto influencers for the brand, this form of marketing is called Influencer Loyalty program or Referral Loyalty program.

Key terminologies in influencer loyalty.  

Referrer: An existing client or customer who refers family members, friends, peers or acquaintances to the brand. Note that a referrer may not be technically a user. For example, a social media influencer discussing a product could, as a result of the action, also be ‘referring’ it to others – overtly or subtly, directly or indirectly.

Referee: The new user and potential customer who discovers the brand or product as a result of being referred to by the referrer.

Reward: The compensation or consideration given to referrer, referee or both in return of completing their respective tasks as described above.  

WHAT INFLUENCER LOYALTY IS NOT.

Just to be clear: It ain’t the same as loyalty.

Yes, you are rewarding customers in both cases, but for different reasons.

In a Loyalty program, which is geared towards user retention, customers are incentivized to make a repeat purchase. In an Influencer Loyalty program, which is aimed at user base expansion, customers are incentivized to bring in new customers through the power of trust and engagement. In this way, influencer loyalty programs effectively increase revenue from existing customers, which also brings down the expense of acquiring new patrons.

Loyalty programs work well for

·  High frequency purchases that ensures immediate gratification.

·  Low to medium price tags if high priced items are not purchased regularly.

Influencer loyalty programs, or referral programs, work well for

·  Both high and low frequency purchases.

·  Both high and low priced products.

HOW EXACTLY DOES INFLUENCER LOYALTY WORK?

THE MECHANICS BEHIND.

The brand’s best customers are lured – with the promise of gifts and goodies - to share their positive experiences amongst their networks and on social media. These shares or mentions act as powerful ‘word-of-mouth recommendations’, spreading goodwill for the brand through the power of positive association. They attract new users who are subsequently incentivised to share their own ‘special moments’, creating a chain effect of endorsement and patronage.  For sharing their stories and dropping a good word for the brand, grateful companies reward customers with special benefits and gifts like…

·  Free items.

·  Early access to new products and launches.

·  Bonus points.

·  Discount coupons for future purchases.

·  Cash rewards and cashbacks.

·  Points that accrue up to grander rewards.

·  Special perks that elevate lifestyle and pamper the ego.

SECRET OF SUCCESS? IT’S EASY TO PARTICIPATE.

Referral loyalty programs or influencer loyalty programs work because of their inherent simplicity. It’s easy to participate in. All the referring customer has to do, is pass on a unique  referral URL or discount code (which usually contains a special ‘first use’ discount to incentivize a trial or purchase) to their friends and networks via whatsapp, SMS, DM’s, social media or emails. Some brands integrate their codes in their social media messaging, allowing anyone to become a ‘referrer’ and a ‘referee’. The referee’s activities are closely tracked. The moment the conditions of the program are fulfilled – be it a click, a download, a registration, a share or a purchase – the reward is automatically  sent to the referring customer.

WHY DOES INFLUENCER LOYALTY WORK?

THE PSYCHOLOGY BEHIND.

· The act of referring taps into our nature desire to flaunt, swag and share. According to Hubspot, 86% of loyal customers will recommend their favorite brand to friends and family. Marketers are left with the simple job of nudging an already existing, and powerful, human emotion.

· Customers feel valued when they are rewarded for their opinions. And when the reward is something they like, the  sentiment is amplified and a recurring cycle is generated.

· Gamified referral loyalty programs stokes the human instinct of competition and solving problems, pushing people to keep ‘playing’ and level-up for better quality rewards.

· Often, flexibility to choose the kind of reward one wants also maintains high levels of interest.

· Referral loyalty works on the principle of ‘credibility through familiarity’. According to Hubspot, 66% of sales people say their highest quality leads come from existing customers.

· Cognitive bias causes people to believe in the dependability and competence of those they trust.

· People are inspired by positive stories and want to experience it themselves. FOMO – fear of missing out – makes them act swiftly.  

· In a time of information overload, recommendations from inner circles can act as a filter and simplify decision making.

· Spreading misinformation is increasingly being seen as a legitimate tool to drive change, according to an Edelman report. In an age where lies are therefore being officially endorsed, truth – and the sources we trust to access it - has become more precious than ever before.

 IT’S ALL ABOUT THE MAGIC OF WORD OF MOUTH! 

Influencer loyalty or referral loyalty draws its power from the concept of ‘Word-of-Mouth’ (WoM). As deeply social creatures, humans seek to build connections in their interactions with others. We also look for guidance and validation on how to behave and what choices to make. Connections who enjoy our trust have an emotional sway over us. When they endorse a product or service, we interpret it as validation, and follow suit.

The other thing that humans love to do, is imitate. In fact, imitation – in a way, the concept of reciprocity – is a pillar of evolutionary progress and crucial for learning, social bonding and cultural transmission. In the context of influencer loyalty, that means two things: ONE - When a friend or family member uses a product, our instincts nudge us try it too. TWO - When a product is recommended to us (and we benefit from it in some way), there’s a strong urge to pass forward the good deed and recommend it to others as well.

With authentic experiences acting as its foundation, Word of Mouth is a much more credible and cost-effective approach (compared to traditional advertising) when it comes to generating trust, shaping perception, influencing adoption and growing consumers.

The stats speak for themselves:

·  Word-of-Mouth generates an incredible 500% (approx) more sales than paid ads.

·  A mammoth 91% of buyers from the B2B space trust Word-of-Mouth recommendations.

·  A sizeable 84% of B2B buyers initiate their buying process based on a referral. 

·  People are 90% more prone to patronize a brand suggested by a friend.

·  A massive 95% of consumers check reviews online prior to making a buying decision.

·  A whopping 92% of millennials value referrals from people they KLT: Know, Love, Trust.

·  91% of millennials will mull a purchase if it came suggested by a friend (Annex Cloud)

·  A solid 86% of consumers admit referrals and reviews are critical for purchase decisions.

·  82% of marketers use WoM to lift their brand awareness.

·  Consumers aged 44+ said referrals provide access to ‘insider information’ they can’t find anywhere else.

·  A robust 4 in 5 consumers discover about brands during conversations.

BENEFITS OF INFLUENER LOYALTY OR REFERRAL LOYALTY FOR BUSINESSES.

Influencer loyalty and referral loyalty programs represent a potent opportunity for businesses, and can be a great fit for organizations across size and industry. Here are some of the unique benefits an influencer loyalty program brings to the table. 

30% BETTER LEAD QUALITY AND CONVERSION RATES.

91% of marketers say lead generation is their top goal, while 45% of businesses struggle to generate quality leads.

Their problem?  Advertising isn’t the lead goldmine it once was. A study shows 73% of consumers dislike pop-up ads, and 81% of consumers have closed a browser or exited a webpage because of one. A Nielsen study confirms the spreading ad aversion, indicating that 92% of consumers trust recommendations from friends and family over traditional advertising.

Who do marketers turn to for their leads, then? Influencer loyalty programs offer a proven way out. It’s not hard to understand why.  Recommendations and reviews from real people - who are known to us and have actually used the product – squarely beat the ‘allure’ of a flashy ad that raves on about itself.

Stats are proof. Leads from referrals convert 30% better and have 16% higher Lifetime Value as compared to leads from other marketing avenues, including ads. No wonder, then, that according to Forbes, referral marketing drives one of the highest conversion rates among all marketing channels.

INCREASED CUSTOMER LIFETIME VALUE (CLV) AND LOYALTY.

CLV is an expression of how much a company can earn from a single customer throughout the period of association. In loyalty influencer marketing, this works in two ways.

HIGHER REFEREE CLV

The judgment of close folks we admire and trust has a big influence on how we think and act. Which is why referred customers (who have a positive experience with the brand) are likely to stay loyal: Making frequent repeat purchases, having 37% higher retention rates, and delivering greater lifetime value.

HIGHER REFERRER CLV

An influencer loyalty program allows a business to deepen relationship with its existing customers by demonstrating to the latter that it values their networks (referrals) and opinions (reviews and recommendations). And by showering them with gifts that support a natural conduct - talking about products they use and like - without any reciprocal commercial expectation, it makes them genuinely happy. Both directly lifts retention and loyalty. Studies show loyal customers generate 10 times the value (of their first purchase) across their total tenure of association with the brand.

HIGHER CLV FOR BOTH

At the end of the day, value is why customers - 53%, to be precise - stay loyal to one business over another. For 30% of people, benefits and rewards spells value. Put two and two together, and you see why influencer loyalty programs are such a bit hit with brands and marketers.  

COST EFFECTIVE MARKETING.

A. LOWER UPFRONT INVESTMENT

When you are essentially sending referral codes via sms, whatsapp, DMs and emails to a database of users that’s already with you, costs are practically negligible.

B. POST PAID FORMAT

Rewards have to be given only after a desired action has been completed or a purchase has been made. This makes influencer loyalty or referral loyal programs one of the most cost-effective strategies in sales, revenue and market expansion.

C. REACH X RELEVANCE

Influencer loyalty programs give brands quick access to new and quality customers by investing in relationship scaffoldings that are already in place. Loyal customers happily do the heavy lifting of attracting new prospects, thoughtfully handpicking friends and family members. The result is an expanded network that is pre-filtered and laser-targeted: An exclusive, 100% organic ‘catch’ with high relevancy the marketing department would normally have to spend big money on.

D. MULTIPLIER EFFECT

Not just that. Customers referred by other customers are 4 X more likely to refer more customers and reel-in a fresh catch of highly relevant prospects, creating a flywheel that is unmatched in terms of ROI.

BRAND AND COMMUNITY

Influencer loyalty and referral loyalty programs are a great way to get your brand in front of more people, win more admirers and grow your reputation. Smart marketers will use the opportunity to maintain consistent relationships, earn more reviews, and create a community that inspires and informs one another with insights and tips around the brand and product usage – amplifying buzz.

SUPERIOR CUSTOMER INSIGHTS.

Influencer loyalty and referral loyalty programs can provide valuable understanding of ideal customer profile (ICP) preferences. Sophisticated tech platforms with the right analytics and reporting tools can help businesses make smart decisions to fine tune their influencer loyalty and referral loyalty activities.

From the referrer point of view, they can pinpoint brand advocates (loyal patrons who share reviews and recommendations more spontaneously, aggressively and regularly) so that marketing activities can prioritize and incentivize these folks more.

From the referee point of view, tools with survey mechanisms can indicate which features and rewards are attractive to new audiences – helping refine the program for better outcomes.

TYPES OF INFLUENCER LOYALTY PROGRAMS

1. POINTS BASED.

A simple structure that rewards customers with points for every purchase or pre-defined interaction. Points are accumulated and redeemed for rewards. The bigger the purchase, the more the points.

PROS AND CONS

Customers who are ok with delayed gratification will look forward to stacking up points for their dream reward. They will also be encouraged to spend more and more – driving up average order value. Brands benefit from steady, long-term engagement and customer value. Identifying high frequency spenders – and modifying program parameters accordingly – is relatively easy. On the flip side, continuous management of the program can be cost-intensive and complex.

WHICH BRANDS CAN BENEFIT?

This type of influencer loyalty program works well with frequently purchased, small-to-medium ticket items such as, for example, digital gadgets, fashion, food and airline brands. A great example is the breezy-to-use Starbucks rewards program that lets coffee drinkers collect ‘stars’ on every bill, and redeem for free food, drinks and more.

2.VALUES OR MISSION BASED.

A ‘higher-order’ influencer loyalty concept that seeks to foster and strengthen deep connections with customers via brand values like sustainability, innovation or community causes.

PROS AND CONS

When done well, this type of influencer loyalty program can ignite powerful passions in their communities and turn members into vociferous advocates. This is a great way to differentiate the brand, reduce churn and build long-term customer loyalty and value. However, rewards – such as a financial donation for backward classes of society, or contribution to sustainability projects like tree planting - may be cost and resource intensive, and complicated and difficult to orchestrate and manage. Brands can partner with NGO’s who are aligned with their mission for implementing these programs.

WHICH BRANDS CAN BENEFIT?

This type of influencer loyalty structure works well where customer acquisition costs are high. Authenticity and transparency are the pillars of these programs. A great example is Ben&Jerry’s, who donate a portion of their profits for every themed purchase to charities that align with their values like climate, animal welfare and social programs

3.TIER BASED.

In this kind of influencer loyalty program, customers unlock value progressively as they rise from one tier to the next. Tiers are decided by the level of patronage and spends. Every new purchase takes customers a little closer towards the next higher (VIP) tier, which carries the promise of sweeter rewards.

PROS AND CONS

With their ladder-climbing gamification flavor and exclusive, ‘Diamond Club’-like targets, tiered programs engage users strongly. They also create clear user segmentation which helps in efficient targeting. On the flip side, multiple levels can make managing the program difficult. Concentration of rewards at higher levels may also cause disengagement at lower tiers and demotivate new entrants, and so program designers must be mindful of equitably distributing incentives across levels.

WHICH BRANDS CAN BENEFIT?

This type of influencer loyalty approach works well for loyal, high-spending customers who cherish status, exclusivity and personalized customer support. Brands derive long-term customer value. Industries like luxury, travel, beauty and food are all compatible for a tiered incentive program. A great example is Dropbox, where referrers receive 500 MB of storage per referral (up to 16 GB) for Dropbox Basic accounts, and 1 GB of storage per referral (up to 32 GB) for Dropbox Plus accounts. It helped the company clock a staggering 3900% growth in 15 months.

SUBSCRIPTION BASED

In this kind of influencer loyalty program, customers pay a fee upfront (subscription) for a product or service, which entitles them to receive rewards. The rewards can be redeemed towards future shopping. Amazon’s Prime membership and Barnes&Noble’s premium membership are both fine examples.

MULTI-STEP BASED 

In this kind of influencer loyalty program, the referrer is rewarded not once, but multiple times, depending on the steps or  milestones crossed by the referee. So for instance, the referrer will be rewarded when the referee books a ‘discovery call’. The referrer may again be rewarded when the referee registers for a training session. The referrer may be rewarded a third time when the referee finally purchases the product by submitting a payment. As you may have guessed, a multi-step referral program has similarities with a tiered program, except that here, the tiers or ‘levels’ are in the hands of the person being referred, not the person who is referring.

STANDARD PROGRAM 

You can call it the ‘basic version’. This kind of program provides the same incentive for every referral, irrespective of the profile or level of the individual making the referral. Rewards are given when program conditions -  engagement or purchase – are met. Sometimes, both referrer and referee are incentivized - either with the same, or different, kind of rewards. The straightforward earn-and-done nature of standardization keeps this kind of program simple, and one doesn’t have to keep a track of the referral progress. That said, it might also make the structure one-dimensional and lacking in excitement.

THE 3 CORE CATEGORIES OF REFERRALS.

DIRECT REFERRALS

This is where users feel the natural urge to refer the product or brand with their close circles since they are happy with it. It is the ‘classic’ or most fundamental referral mode, and there may not be an incentive for the either referrer or referee.

INCENTIVIZED REFERRALS

This is the most common type of referral where the existing user or customer has a clear and compelling reason – in the form of a reward - to recommend or positively review the brand’s product or service. So you can give away gifts when users refer someone, or do a Pay-Per-Post for influencers willing to write about your brand.

REPUTATION REFERRALS

This happens when the brand is so strong or trusted that people feel spontaneously compelled and confident in sharing information about its products and services - even if they may not have used it themselves. It is an indirect form of referral that isn’t directly under the brand’s control – and therefore not a rational framework to construct a loyalty program around.

SHOULD YOUR INFLUENCER LOYALTY PROGRAM REWARD ONLY ONE PARTY, OR BOTH?

Let’s see what they are, and compare merits and demerits. 

One Sided Rewards

This type of influencer loyalty mechanism incentivizes only one half of the referrer – referee equation, not both. The decision of whether to go for a one or two sided program will be both strategic and financial. There are pros and cons to consider on both sides. Existing customers may not feel motivated to share if only the referee is rewarded. On the other hand, the referee may not feel motivated to buy if only the referrer is rewarded. For the first case, you need to start with a very loyal and passionate set of users. For the second case to succeed, your product or service must be unique or special.

GOOGLE DOES A GOOD JOB WITH SINGLE-SIDED REFERRALS.

The Google Apps referral program uses a single-sided structure, offering dollar rewards for every new paying user. Users need to sign-up, share their unique referral link and promotion codes with their network, and earn cash rewards for the eligible users they refer.

Two Sided Rewards

This type of influencer loyalty program incentivizes both the referrer and the referee, making for a win-win structure. Over 90% of referral programs reward both sides, vouching for the format’s efficacy. When implementing this option, it’s best to have different sets of rewards, mapped to respective personality profiles. Double sided programs are naturally more cost-intensive, so both budges - and the type of rewards - need to be planned with due consideration.

UBER CRUSHES THE TWO-SIDED REWARDS FORMAT.

The popular ride-share app has baked a powerful dual-sided loyalty referral program into its product experience. Every customer is offered a personalized referral code at the point of account activation. When a new account is created with the referral code, both parties enjoy a free ride on their next Uber trip.

HOW TO DESIGN A GREAT INFLUENCER LOYALTY PROGRAM FOR YOUR BUSINESS AND SALES TEAMS?

1.GET A GOAL

A SMART goal, that is. One that’s specific, measurable, attainable, relevant and time bound. Simply wanting to earn more revenue from your program is perfectly legit, but lazy. You can achieve much more with a ‘surgical strike’, so to speak, so why not add laser specific parameters?

Ask yourself what success looks like. More reviews for your social media page? User feedback to refine product? A X% increase in next quarter’s revenue? Introduce your product to new industries and clients? Nurture client relationships? Get influencers to talk about your idea? Do you want just growth or retention, too?

Your grand target, and the time you allow it, will inform everything else: The nature of the reward, the KPI’s to set, the manpower and resources to allocate, and so on.

2. PINPOINT YOUR AUDIENCE.

Who is your influencer loyalty program talking to? In other words, who is the referrer? Is it :

· Your existing customer database.

By definition, this is your natural and primary target audience – folks who have been using your products and have, ideally, bought it more than once. CANVA’s referral program, which allows designers to refer a friend to Canva in exchange for a Premium Canva element like stock photo, icon, or illustration – basically, stuff designers love - is a lovely example. However, you can slightly reshuffle program variables to also include:

· Your employees and teams.

Capgemini integrated with Plum for their referral incentives, rewarding employees, clients

and vendors with quicker and smarter implementation of incentive strategies.

· Mega influencers with massive followers.

You can use BuzzSumo, Traackr, AspireIQ and other tools to identify influencers who might be right for the nature, scale and target audience of your program.

· Micro and nano influencers with 500 to 1000 followers.

Daniel Wellington went from a small Swedish watch company to a global brand by incentivizing micro-influencers with free watches in exchange for pictures on Instagram featuring their timepieces. A class story of a mini budget creating a mega impact.

5 Email Templates to Use for your Referral Programs

Not sure how to approach your customers for a referral? Here are some high converting, fully customizable referral email templates to get you started! 

3. MAP REWARDS TO CUSTOMER

It’s time to turn users into influencers. A sound knowledge of the likes and preferences of your existing customers – and a broad sense of the market to understand what their referees may relish - will help you customize rewards for vastly improved ROI and outcomes. 

It’s important to make rewards:

• Commensurate : Blended with intrinsic and extrinsic motivation. 
• Personalized
• Immediate. 

As per AMA (American Marketing Association), the mere act of offering a reward – irrespective of its size or shape – increases the likelihood of referrals. Here are some categories of rewards to consider…

·  Cashbacks, discounts, gift coupons, and store credits are perennially popular across customer groups because of their instant gratification appeal. Avoma, an AI powered platform providing tools for effective meetings, designed a referral program where both referrer and referee got rewards they like – such as commission, service upgrades and discounts.

  There are also those who prefer free products, exclusive benefits, backstage passes, branded swag merchandize and redeemable loyalty points. Dropbox famously lets users 500 MB of space for each friend they refer – the perfect free gift folks will actually use everyday!

·  Then there are altruistic folks who cherish the opportunity to give back, such as charitable donations.  Popular restaurant Upserve donates to the Clean Water Fund as a gesture to honour customers for their referrals, connecting with the altruistic leanings of their patron base.

·  If you are using influencers, you can get more creative. To promote their cameras, Fujifilm in 2020 released a social film featuring freelancers – incentivizing the influencers to enjoy screen time on a massive platform for a lifetime.

·  The best rewards often think beyond money - they are memorable and meaningful experiences. Add a subtle financial layer to create a lasting impact on your CLV. To stay withing your budget, get innovative with resource planning, such as recycling old gift inventories.

Here are 15 Unique Ideas to reward customers for referrals.

4.    CREATE A FORMAL PROGRAM

Create a clear and uncomplicated ‘Refer-A-Friend’ type program to get things rolling. Begin from your baseline and optimize your way up, tweaking incentive, messaging and audience profiles along the way. Make sure participation is super simple: The less the number of steps, the better - one single, swift action is best. Ensure your CTA (Call-To-Action) is clear so that participants know exactly what they are required to do. Send regular alerts and notifications to ensure timely action.

5.    SOME THUMB RULES.

·  START WITH WHAT’S WORKING.

Want a headstart? Identify where your current referrals (no matter how thin the trickle is) are coming from, and start there. Begin with the platform where your potentially referral-friendly audience demographic is the highest. Fix, improve, learn and gradually amplify to other destinations.

·  BE WHERE YOUR CUSTOMERS ARE.

The modern customer journey is omnichannel and unpredictable, so try mixing up media or combining different platforms to increase chances of ‘running into your TG’ that leads to a program sign-up. This will also help you understand your best performing avenues. Analyse user journey maps to meet your customers right in their favorite haunts and jaunts - be it whatsapp, social media, DMs, slack channels, email, website, forum discussions, live chat, phone and customer service, or others.

·  TIME IT RIGHT.

Ask for referrals when your customers are the happiest, or memory of the experience is fresh. Right after they have purchased (and, presumably, used) the product usually carries a high chances of getting a referral or positive response. CASE IN POINT: The Canva referral program widget pops up the moment someone successfully finishes a design project, brilliantly leveraging a happy moment when someone might be highly likely to share their success experience or expert insight with a friend.

·  TEMPLATES ARE POWERFUL.

Pre-designed referral templates can make the job easier for you by streamlining the process, maintaining consistency and ensuring efficiency. With their familiar look, feel and UX, they also eliminate guesswork for customers.

·  OPTIMIZE FOR MOBILE.

Nearly 96% of people turn to their mobile device to log online, so pay particular attention to the mobile friendliness of your referral loyalty campaign. Mobile apps make the participation quick and convenient. 

·  CELEBRATE HIGH PERFORMERS.

Provide high-performing influencers with affiliate links that can be easily monitored. Acknowledge high-referring customers and make them feel special with generous mentions and appreciation on social media. Highlight their stories on social to trigger conversations which manufactures valuable User Generated Content (UGC) for you. Australian skincare brand Frank Body encourages customers to share photos of themselves using their products for an opportunity to be featured on the official account.

·  TURN UP THE ADRENALIN WITH GAMIFICATION.

By whipping up the fundamental human appetite for challenges, competition and rewards, gamification can drive customers into fully immersive ‘flow states’. Use quests, storification, leaderboards, progress bars, levels and ranks, feedback, discussions, social integration, play currency and prizes to make your loyalty referral program motivating, engaging and fun.

·  STAY IN TOUCH WITH CUSTOMERS. Keep a finger on your audience pulse.

Actively seek endorsements. Collect social creds via pop-up forms, during check-outs and in email flow. Activate surveys, solicit feedback via personal outreach, and follow reviews and testimonials on social media, online communities (like Slack) and consumer forums. Unlike referrers, who are old / repeat customers, referees are new users who may surprise you pleasantly with a fresh perspective. You will also get insights on which kind of rewards are working, and which aren’t.

·  PROMOTE IT AGGRESSIVELY.

To increase the discoverability of your influencer loyalty initiative, promote it across multiple touchpoints like website popups, post purchase notifications, company social pages and blogs, newsletter, CTA, email signature and forums like Quora and Reddit. Custom-design your communication with your brand voice, colors and flavors. Trigger curiosity and awe with compelling messaging, communicate benefits explicitly, highlight ease of participation, and make sure people understand the terms and conditions. Embed your offer within the stories and narratives your patrons actively follow. Capitalize on trends and seasons. Never miss the opportunity to whip up curiosity and buzz every time your brand or product is mentioned online - it’s free publicity for your program! Conversely, monitor negative vibes to nip a potential PR crisis before it flares up.

The below message – fun and attractive - highlights the importance of communication in driving engagement towards your loyalty referral program. 

·  REMEMBER, CUSTOMER EXPERIENCE IS EVERYTHING.

Nothing’s more infectious than happy memories. A memorable customer experience (CX) can substantially accelerate outcomes for your influencer loyalty program. So…

• Research and prioritize your customers’ needs
• Be empathetic and responsive to their reality
• Focus on meeting experience and establishing trust
• Be unmissable: Target them on home turf where they spend most of their time
• Create consistently personalized interactions
• Empower them with control
• Make tasks and activities joyful and effortless
• Plan for big moments of delight.

What are some common pitfalls to watch out for when designing an influencer loyalty program?

Some common pitfalls you must stay mindful of when creating a referral loyalty program are:‍

• No clarity: Inability to communicate core program details such as eligibility criteria, referral process and rewards structure can create confusion and disengagement among participants.
• Inadequate motivation: Are your incentives and rewards customized and substantial enough to encourage participation? 
• Zero engagement: A great start is only the beginning. Make sure you sustain the tempo with ongoing communication and interaction. 

Should you hand-craft your own influencer loyalty program in-house, or use a tech platform?

If you have the time, expertise and hands to build one in-house, it’s worth a shot. After all, nobody knows your ‘big idea’ better than you. Most organizations – and certainly startups - find it challenging, though, since it takes focus and resources away from their core tasks.

SOME  INDUSTRIES THAT BENEFIT GREATLY FROM INFLUENCER LOYALTY PROGRAMS ARE

E-COMMERCE: Owing to its large audience groups, popular product categories and mobile-friendly format, word of mouth promotion is powerful fit for this sector.    

HEALTHCARE AND PHARMA: Due to the ‘serious’, life-and-death stakes in the domain, we tend to rely greatly on the experience of those we know, making the industry perfect for an influencer referral program. 

SAAS: This subscription sector has traditionally relied on referrals for growth. The digital nature of the space makes tracking and managing seamless, too. 

GIFTS: The brag-worthy nature of the niche imakes it particularly suited for online shares and social mentions. 

E-LEARNING: The opinion of users is greatly sought after since it can make or break careers, making this industry well suited for influencer loyal programs. 

TRAVEL, HOSPITALITY, RESTAURANTS: A sector where recommendations are often valued greatly and one where costumers appreciate deals and discounts. No surprises then that well crafted loyal referral methods deliver solid leads. 

FASHION & BEAUTY: We want to imitate people who look good, and usually can’t make up our mind owing to the plethora of choices out there, making this industry tailor-made for helpful reviews. 

PERSONAL FINANCE & WEALTH: Another sector where trust is paramount, making it naturally fit for a loyalty referral program. 

MOVIES & ENTERTAINMENT: We can’t stop talking about flicks and shows we love (or hate). Production houses, movieplex chains and OTT platforms make full use of this habit with attractive discount based referral marketing.

TECHNOLOGY & GADGETS: In a time when digital products rule our lives and we keenly follow influencer and user reviews before a purchase, the value a referral loyalty program can unlock is mammoth. 

HOW TO CHOOSE AN INFLUENCER LOYALTY PLATFORM?

If you want to try an influencer loyalty platform, here are some considerations you must keep in mind while choosing one.  

·  It should be simple to use even without specialized technical knowledge, allowing everyone across role & function to participate.

·  An influencer loyalty program spends a lot of its life in dynamic, work-in-progress (improvement) mode. The platform you choose should therefore be flexibly customizable, allowing you to implement feedback quickly and tweak changes on-the-go.  

·  Make sure the tool provides knowledgeable customer support and quick grievance redressal services that ensure you get out of potholes quickly.

There are advanced tech platforms that let you monitor, measure, manage and automate your influencer loyalty program with a data driven approach. For example, Xoxoday Plum’s Customer Referral feature can turn customers into brand advocates by incentivizing them with referral rewards. Plum can generate referral codes and links to monitor each referral and tie them back to the referring customer. Automation is easy too, thanks to Plum’s integrations with tools like HubSpot CRM, Zapier, Typeform, SurveyMonkey, DarwinBox and ZohoPeople. On the other hand, if you want to design a loyalty referral program specifically for employees, Xoxoday Empuls can help.

TRACK WHAT MATTERS.

The metrics you should be tracking for your influencer loyalty program will depend on the SMART goals you have set for yourself. Some KPI’s here could be:

Participation rate

This is a percentage metric to understand how many people eventually signed up for your program. It won’t reveal the percentage of customers who referred someone to you, but will give you a sense of how optimized your campaign targeting is.

Share rate

This tracks the % of people actually sharing your code or link with their networks, or conversely the number of people referred to -  indicating how strongly your influencer loyalty program is motivating target referees.  

Conversion rate

How many referees have gone through the desired actions or become paying customers? This is an indication of both (A) The appeal of the product, and (B) the efficiency of the influencer loyal program.  

CAC

Run the CAC (Customer Acquisition Cost) of your influencer loyalty program against various other user acquisition activities you may be running to compare and demonstrate the cost effectiveness of your efforts.

Customer Satisfaction Score (NPS)

How happy are users with the program and how likely are they to recommend your product? To get a sense, track engagement metrices like click-through rates, open rates, bounce rates, social sharing, churn rate, average session duration, social mention and stickiness. Subtract the number of detractors and passives from the number of promoters and advocates to understand the kind of interest you have managed to generate so far.

CLV

Calculate the lifetime value of referred customers vis-à-vis those acquired through other avenues to assess the long term impact of your influencer loyalty program.

Customer expansion rate

How fast are you bringing in new users? A robust influencer loyalty program should be able to grow your customer base at a decent clip.  

Referral revenue

Figuring out the amount of money your influencer loyalty program has generated so far, will tell you whether it is worth investing further in.

ROI

This is a metric that’s of particular value to investors and stakeholders. It gives you clarity on the return on efforts and investment by reviewing revenue vis-à-vis costs.

Master referral loyalty marketing with xoxoday loyalife and get more referrals from less effort.

Navigating the intricacies of reward management can be daunting, but not with xoxoday. Our data backed referral rewarding campaign is designed to strengthen ROI with more engagement and better returns irrespective of team size, location, or industry. Here’s what that translated to for our clients recently:

·  54% increase in digital engagement for a D2C brand.

·  58% better returns on ad spend for an FMCG organization.

·  47% increase in customer referrals from loyalty campaigns.

To experience the future of referral and rewards driven growth book a demo.