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Utilize Age Texting’s SMS referral campaign to easily promote your VIP Text Club with the help of happy customers.
What is referral marketing?
Referral marketing is a method of advertising in which businesses entice customers to recommend their products, services, or experiences to others. Referral marketing is a planned strategy that offers incentives and rewards for customers who refer leads or new customers. A referral strategy essentially relies on happy customers to run the program.
4 Benefits of SMS Referral Marketing
Cost-efficient—Social media brand advocates and influencer partnerships fall in the referral marketing category. However, these efforts can often be costly and time consuming. A more affordable strategy to reach new people is to introduce a refer a friend program to your most loyal customers. Encourage them to recommend your products and services to their friends in exchange for a reward. Leverage the value of your most loyal customers by tapping into their networks. Customers sharing your brand see referral marketing programs as a benefit to them. They already love your brand and would appreciate the opportunity to receive a gift card or credit towards a future purchase.
High customer lifetime value—New customers from referral marketing can have a 16% higher lifetime value of customers you acquire from other marketing channels. Keep in mind, every customer acquisition costs money—whether acquired through advertising, discounts, or other marketing methods.
Conversion Probability— Referral marketing generates 3-5x more conversion rates than any other marketing channel. A person receiving a recommendation from a trusted source is more likely to be influenced to act on a referral. In a global study, 93% of respondents reported that friends and family are the most trusted source for information on brands and services.
Establishes Trust—Personalized recommendations are the most likely customers. However, they may follow up and read online reviews before purchasing so make sure you have an online review management strategy in place. 46% of consumers feel that online business reviews are as trustworthy as personal recommendations from friends or family.
Offer customers an incentive to recommend you.
More than 50% of people1 are likely to give a referral if offered a direct incentive, social recognition or access to an exclusive loyalty program.
39% of respondents2 say monetary or material incentives such as discounts, free swag, or gift cards greatly increase their chances of referring to a brand.
Plan your SMS referral marketing campaign.
What are the benefits of your text club? Why should people join your text club?
How long will the referral campaign run?
What types of rewards will you offer to encourage customers to recommend your text club
How will customers track their referrals and collect rewards?
How will customers redeem their reward(s)?
How will new customers redeem their reward(s)?
Why Implement an Age Texting SMS Referral Campaign
Age Texting's referral program ensures that referred friends are new text subscribers and not already in the selected group.
Prevents self-referrals.
Create custom rewards and messaging.
Track the number of new opt-ins each subscriber (referrer) recruited through their unique referral link.
Easy to manage—no need to monitor ad targeting or budget.
Your subscribers are sending the referral messages, so you are not charged for their text shares.
Add an SMS referral marketing campaign to your SMS database growth efforts.
Sources:
1 and 2: https://www.signpost.com/blog/referral-marketing-statistics
Updated 11/27/23