Best Referral Marketing Software in May 2022

Online referral marketing is a strategy that relies on referrals from existing customers to generate new business. The goal is to generate leads and eventually increase sales.

Online referral marketing can be done in several ways. One is through social media, where you can publish engaging, shareable content. Another way is through email, where you can send out emails with special offers and ask recipients to forward them on.

These processes can be easily automated with a referral marketing platform. By using one, you’ll have a dedicated, self-perpetuating referral marketing campaign that you can just tweak or update as needed.

Referral marketing works because it creates a powerful sense of community and belonging. These are two things that are very important to consumers.

Studies show that word-of-mouth marketing feels more convincing and trustworthy to consumers than direct advertising. Before buying a product or service, consumers often look for recommendations or reviews. A referral from your current customers can be the key differentiator between you and your competitor’s product.

Lastly, referral marketing is cost-effective. With a small incentive or even just a well-placed message, a customer who just had a positive experience is likely to recommend your brand to others. Customers acquired through referral marketing also tend to spend more and make more referrals.

Referral marketing tools automatically integrate a referral process into your online store, website, and other customer touchpoints. They do so by generating referral codes and rewards, customer review requests, or even loyalty point schemes for your customers. They also provide you with a dashboard where you can see real-time results of your ongoing referral campaigns.

Referral marketing tools differ based on the channels they serve and the customer rewards they can provide.

Some tools focus strictly on email marketing, social media marketing, SMS, or website and e-commerce marketing. Others combine all of these into one platform. Some tools also help you build a referral marketing system that operates on cash rewards, future discounts, or loyalty points that can be exchanged for merchandise. Others can even build referral competitions where only the winning customer gets a reward.

Know your existing customers. Learn their decision-making process, the digital touchpoints they buy from, and where they prefer to learn about your offers and services. From here, you can narrow down the channels to focus on and build a referral system that seamlessly complements their shopping habits.

In addition, consider your marketing budget, ease of use, ease of integration into your point-of-sales, and scalability. Can the tool bring in customers on a small budget? Can you easily add it to your e-commerce site? Check out our list of the best referral marketing tools above for one that best suits your needs.