How to Launch an Email Referral Program?

With a multitude of choices and customers' attention spans being restricted, the marketing tactics that formerly propelled organizations to success have now become outdated. Referral marketing, compared to traditional advertising, provides increased conversion rates, higher loyalty, and more expansive profit margins at only a portion of the expense.

With the success of large corporations such as Harrys and Robinhood, an increasing number of businesses are embracing referral programs to increase their revenue through customer acquisition channels.

The approach is straightforward: find your most loyal clients, send them emails listing your referral offer, and lure them as advocates for your company through striking incentives. The strategy broadens your reach and has proved to be a game changer in the current advertising scenario.

This blog will focus on one of the most effective types of referral marketing programs: email referral programs, an essential tool for entrepreneurs trying to establish and scale their businesses.

What is an Email Referral Program?

A marketer may need help locating their ideal clients and enlisting their support. Forging genuine connections with clients requires a blend of tailored messaging and engaging strategies. This is where email referral marketing programs come into play, providing a potent mix of individualized communication and successful engagement strategies.

An email referral program is a strategy created to use the effectiveness of word-of-mouth advertising to increase the number of email subscribers to your list steadily. To put it in simple terms, it's a calculated strategy to use the networks of your current subscribers to draw in new ones.

As a marketer, your aim is to inform current subscribers about your program through emails and ask them to persuade people in their social circle who may find your product valuable. To encourage involvement in the referral hub, you can offer your subscribers specific incentives for every practical endorsement.

These incentives include exclusive information, discounts on your offerings, giveaways, or even access to exclusive features, depending on what best aligns with your business approach and is most likely attractive to your customers.

Why Are Referral Email Programs Important?

Referral emails are crucial because they let businesses unlock a goldmine— the social networks of their existing customers. When a customer shoots an email to a friend, colleague, or family member recommending a product or service, it's like saying, "Hey, I trust this, and you should too." That kind of recommendation matters a lot. Here's a breakdown of why referral emails are such a game-changer:

• Referrals are an excellent tool for creating credibility and overcoming skepticism because people believe in the endorsements of those they trust and respect. There is a 4x chance that a customer will purchase a product recommended by a friend or family member.
• 50% of respondents think personal endorsements are essential when purchasing goods, with only price and location rated higher.
• Regarding purchasing a product, 88% of customers rely on referrals from family, friends, and colleagues. You may ignore a sponsored ad, but an endorsement from someone you know will most likely influence your purchase behavior.
• Email referral programs in e-commerce may do wonders for your sales, increasing income by 10%-20% for standard products. It is also reported that email referral marketing may bring in approximately 20,000 new email addresses per month.
• Customers who learn about a business through personal referrals convert 30% more than those who hear about it through other marketing channels.

Step By Step Guide on How to Write a Referral Email

Customers are more valuable to a company than a mere financial transaction. To sign them as ambassadors, make sure to present your referral offer in a way that’s impactful and relatable to the customer. Emails set an exclusive tone with your audience, letting them know they’re valuable to your business. Here are the five best practices to help you write captivating customer referral emails.

Define Your Audience

Formulating an email marketing strategy is more challenging than it sounds. You have to take into account a multitude of factors, including your target audience. Your email marketing campaigns will only succeed if you recognize what your customer base is.

Therefore, you must research and know your audience before you send them referral emails, along with incentives that appeal to them.

Use a Strong Email Subject Line

Around 47% of individuals decide whether to open or dismiss an email based on its subject line. This implies that you've got to play smart and grab your customers' attention with your subject lines for referral emails.You can also grab your customers' attention by using a unique referral email template or offering them a unique referral link.

Here are a few tips that will help you write a compelling email subject line:

• Keep it short and crisp, preferably within 40 characters or six to ten words.
• Refer to the recipient by their name.
• Don't forget to highlight discounts or credits.
• When it comes to punctuation, less is more.

Here is an example of a strong subject line from BigDogCo: Notice how they grab your attention and inform you about a ‘special offer’ and immediately mention the 50% discount for you and the person you refer to.

Keeping your subject line short and immediately highlighting the incentive is the make-or-break point and causes customers to open the email.

Keep it Short

According to Times magazine, Our attention span is just eight seconds. So, go for short and crisp referral emails. If excluding certain information won't make a significant difference, leave it out. Your main goal is to get recipients into the referral program, which is why every word should nudge action. Revise and edit your email draft until your message is clear, pushing your customer to hit that CTA button.

Highlight the Referral Incentive

You've nailed the subject line, and now they're curious. They want to know what's in it for them with your referral program. Here's what you should do now:

• Explain What You Want: Ask for referrals.
• Talk Incentives: Share what they'll get out of it.
• Mention Offer Duration: Let them know how long this opportunity lasts.
• Maintain Transparency: If you have any other information, share it. The referred friend may also receive a reward, or there are specific terms to follow.

Here is an example of an email from Plann that ticks all the above mentioned points. You're asking to share the referral link with friends, highlighting the $10 off and one month's free subscription.

Include a call-to-action (CTA)

Your referral email got their attention, but is that enough to seal the deal? Not quite. It would be best to have a call-to-action (CTA) that guides them. The CTA is your nudge for action—here, it's about referring a friend and grabbing a tempting incentive.

Make the CTA stand out. Give them a referral link explaining your referral program, or toss in a unique referral code for their pals.

The CTA is the deal sealer. A simple click sets them up to refer someone and snag your offer. Nail your CTA with these tips:

• Visibility Matters: Ensure it's easy to spot and catches the eye.
• Action-Packed Text: Use engaging verbs like "Get my 20% discount now."
• Urgency is Key: Create a sense of urgency, nudging new customers to act pronto.

Here is an example of what an excellent refer-a-friend email looks like :

How to Set Up a Referral Email Sequence

Starting a healthy relationship with customers and accessing their social network to propagate your brand message may need more than a Thank You message. Many marketers rely on typical thank you emails to introduce their referral program, but it rarely holds them to it.Setting up a referral email campaign includes three significant phases:

The First Email: Mention the Customer's Advantages.

The most critical step for any referral marketing campaign is the first email. This email will highlight the benefits of introducing friends and family to the customer or advocate (the referral reward).

The subject line of this first referral email should make an excellent first impression; here are a few examples that you can take inspiration from:

• One for you, one for your best friend
• Share the joy with the people you care about. Refer and earn.
• Say hello to [discount]; invite friends now!
• Hey, [name] Did you tell your friends about us yet?
• Fancy a freebie? Reward yourself and someone you love with [insert special offer].
• Just for today! Get [amount] discount off

The initial email has one mission: spread the word about your referral program. It should grab attention and hold it. A killer header is your ticket to ensuring people open your 'refer a friend' email. Keep the steps crystal clear, leaving no room for confusion about signing up and referring.

Once the stage is set and your customers are in the loop about the referral program, the follow-up is a breeze. Send them gentle reminders through friendly emails, nudging them to score their rewards by referring friends.

The Second Email: Send a Follow-up Message

For the second email, keep the momentum alive by gently reminding existing customers to refer their friends. People might not refer immediately—they could be testing the product or caught up in a busy day. So, follow-up emails offer them more chances to spread the word.

In these reminders, emphasize the value they and their friends gain from your referral campaign. Timing matters, too. Weekly emails might be too much, so opt for every two weeks or once a month.

When you send a follow-up, give it a fresh twist. Draft a new version to keep your referral program exciting. A reminder line about your referral program can also work wonders. Keep it engaging!

The Third Email: Request That They Become Brand Ambassadors

Just like great salespeople build a relationship before closing a deal, referrals also thrive on a solid connection. The first email might not seal the deal, but keeping the conversation going and showcasing value can up your referral game.

Once your customers value your products and have a strong relationship, they'll naturally want to refer their friends and family. Make these referrals successful by offering incentives that benefit both the referrer and the new person in the loop.

Conclusion

Referral email marketing is a terrific and simple approach to growing your customer/user base. All you have to do is create a worthy reward for customers/users to suggest you to friends, follow the other recommendations and tactics we outlined in this article, and send the reward to each referee once you have your valuable referrals.

But if you're still confused about where to start or how to design the perfect email referral program, sign up with prefinery.com for your exclusive referral email marketing strategy and let us handle it.

FAQs

How can businesses optimize their email referral strategies?

Businesses can optimize email referral strategies by:

• Crafting short and engaging subject lines
• Offering valuable referral rewards
• Ensuring emails have a CTA that grabs their attention.

What are the examples of referral incentives?

Referral incentives may include cash prizes, discounts, and early product access, depending on what best aligns with your business approach and is most likely attractive to your customers.