We are finally heading towards the end of 2020– what a rocky year for many of us. That means we are approaching the holiday season. This year, holiday shoppers are more likely to shop online to avoid crowds and stay safe.
According to Business News Daily, the increasing number of customers buying online expects a personalized shopping experience. Also, many stores like Ice Rings are offering an ongoing holiday sale until further notice. As the customers’ buying behavior hasn’t changed much except for moving to online sales, starting a referral program can help you convert more people into paid customers.
Here are the four reasons why you should start a referral program:
Increases your business credibility
While numerous stores offer discounts and coupons, consumers seek more new rewards. According to Adobe, different incentives entice customers– 61% desire financial rewards for shopping, and 58% want rewards personalized to their needs. Rewarding customers with discounts for the next purchase is common, but frequent discounts will not make their shopping experience different from that of other competitors. Unlike other businesses, your business will earn more happy shoppers when you reward them for bringing in their friends. A referral program can help your business by increasing credibility and brand awareness through word of mouth.
Converts prospects to new loyal customers
There are many ways businesses can get their products or services in front of the right audience such as social media, SEO, or paid ads. However, converting prospects into customers is not as easy as it sounds. Review 42 says that referrals have a 30% higher conversion rate than any other channel. Besides, the source says the lifetime value of referred customers is 16% higher than that of non-referred customers. When your business is doing a holiday or seasonal sale you might attract more customers than usual; however, their likelihood of returning to your shop is not so much. You can use referral programs to incentivize customers coming in for a discount, and they will stay with your brand longer.
Easier to track your ROI
It is not easy to track return on investment (ROI) manually. Even managing customers is challenging as your business grows over time. Referral programs can solve these pain points. For example, btwn automatically calculates ROI by tracking revenues earned from referrals, total referred customers, and the most active customer groups, which generate through referrals. Based on the collected data, you can not only analyze their behaviors but send messages and incentives to bring them back. The best part is that you can customize the message settings from choosing recipients to setting rewards.
Get reviews from verified customers
Did you know how much a negative review can impact your sale conversion? According to Qualtrics, 94% avoided a business after reading a negative comment- that is a large percentage. Although a shopper could have left a negative review based on their experience, the review is not verified, and maybe they may not have visited that business. Online review platforms such as Yelp and Google Reviews do not keep track of fake reviews, and the reviews can damage the business’ reputation. When your customer downloads btwn app and purchase at your business, they can write a review on your profile on the app. On the other hand, no other people can write reviews unless they made a purchase. btwn app helps improve the transparency and awareness of your brand more than ever.
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