Referral programs
Posted: Mon Jan 20, 2025 7:11 am
In essence, this is the presentation of bonuses to customers (who are already loyal to the brand) who attract other customers. This can be money, cashback or some special discounts. Referral programs not only help to retain old customers, but also to attract new ones, and at a lower cost. Usually, people trust the opinions of friends, relatives, close acquaintances, famous bloggers and willingly contact the companies recommended by them.
A study conducted by Smallbizgenius showed that if a company has a good loyalty program, 70% of customers actively recommend it. If you give a person a bonus, he will repeat his recommendations and even persuade those who are hesitant to become a client of this business.
Ambassador (a referral line database program developer) confirms this with its own research. During the first year of the referral program, e-commerce profits increased by 2 times, and by 6 times within three years.
On Ozon, customers who bring in new sellers receive 1,500 points (they can then be used to pay for purchases), and the sellers themselves receive 5,000 points (they can be used for promotion). That is, Ozon rewards two participants. There are also one-way referral programs, when the bonus is awarded only to the party that brings in new customers.
Package bonus offers
Cosmetics sets for travel, discounts on coffee or desserts, some gift sets - all this (and the like) helps to increase the average bill, because a person buys several products at once.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
Short Flash Sales
These are short-term promotions, when the brand's products are heavily discounted. For example, "Black Fridays". Of course, to create more excitement, information about upcoming sales should be communicated in advance.
A striking example of how incentive marketing can influence demand is Black Friday 2020 in online stores. The owners themselves called it the most profitable in the history of such events. Shopify sold $5,100,000,000 worth of goods over two days. That is, 76% more than the previous year. On Amazon, sales growth on Black Friday was 60%.
Short Flash Sales
The situation in Russian retail in 2020 was similar. According to analysts at YUKassa, this year (compared to the previous one) 60% more sales were made, and the average bill increased by 12%. Fotosklad's traffic increased by 30% on Black Friday, and sales volumes reached 35,000,000 rubles. During the day, 130,000 users visited it, placing 2,692 orders. KUPIVIP.RU received 270% more profit in one day than for other full shifts in November, and Wildberries' revenue amounted to 5,400,000,000 rubles.
A study conducted by Smallbizgenius showed that if a company has a good loyalty program, 70% of customers actively recommend it. If you give a person a bonus, he will repeat his recommendations and even persuade those who are hesitant to become a client of this business.
Ambassador (a referral line database program developer) confirms this with its own research. During the first year of the referral program, e-commerce profits increased by 2 times, and by 6 times within three years.
On Ozon, customers who bring in new sellers receive 1,500 points (they can then be used to pay for purchases), and the sellers themselves receive 5,000 points (they can be used for promotion). That is, Ozon rewards two participants. There are also one-way referral programs, when the bonus is awarded only to the party that brings in new customers.
Package bonus offers
Cosmetics sets for travel, discounts on coffee or desserts, some gift sets - all this (and the like) helps to increase the average bill, because a person buys several products at once.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
Short Flash Sales
These are short-term promotions, when the brand's products are heavily discounted. For example, "Black Fridays". Of course, to create more excitement, information about upcoming sales should be communicated in advance.
A striking example of how incentive marketing can influence demand is Black Friday 2020 in online stores. The owners themselves called it the most profitable in the history of such events. Shopify sold $5,100,000,000 worth of goods over two days. That is, 76% more than the previous year. On Amazon, sales growth on Black Friday was 60%.
Short Flash Sales
The situation in Russian retail in 2020 was similar. According to analysts at YUKassa, this year (compared to the previous one) 60% more sales were made, and the average bill increased by 12%. Fotosklad's traffic increased by 30% on Black Friday, and sales volumes reached 35,000,000 rubles. During the day, 130,000 users visited it, placing 2,692 orders. KUPIVIP.RU received 270% more profit in one day than for other full shifts in November, and Wildberries' revenue amounted to 5,400,000,000 rubles.