Building trust through referrals

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Did you know that 81% of US online shoppers’ purchase decisions are influenced by their friends. It is crucial to invest in engaging with your customers so that your relationship is meaningful enough for them to share with the world. When shoppers feel passionate about a brand, that’s when they’ll start bringing it up with friends and family. Studies show that people referred by a friend are 4X more likely to buy than other shoppers.

A great experience, product, brand mission, and message alongside superior customer service is a start, but you should also ensure your natural brand ambassadors get value for their loyalty. Customer retention is key and with incentives rewarded for referrals you can build the natural habit of sharing in a way that benefits your customers as well as new potential shoppers.

How can you implement this into your existing program?

  • Allow your customers to share referral links privately and personally with their friends. We’ve found that sharing with a friend directly through e-mail or facebook messenger works 15x than publicly sharing a referral link on social media. Consumers value a personal touch and one-to-one connection.

  • Make it easy for your customers to spread the word to friends by enabling direct messaging and a seamless user experience.

Take a close look at your raw data. To be successful, you’ll need to understand your customers' shopping behaviors and trends alongside their feedback and thoughts about your brand. Use your loyalty program insights to tap into the personal experience of your individual customers, so you can build targeted communications and a personalized experience.

Conclusion

Customer loyalty and retention far outweighs customer acquisition. In order to succeed, brands need to build a unique loyalty program strategy that takes into consideration key elements of brand values, user experience, and ease of use for customers. Programs need to tell the story of your brand while still nurturing and building a trusting relationship with your customer — only then will your customers become loyal shoppers and brand ambassadors.