Now that you’ve seen how you can leverage referral marketing in your marketing strategy, it’s time to look at some good examples on how effective referral marketing can be executed. As end consumers ourselves, we just want to make sure we get our money’s worth with every transaction. And, by diversifying the rewards offered to include actual company stock, rather than a financial incentive, credit or discount; T-Mobile was able to offer something with more unique and special for their referrers and their friends. More marketing leaders are turning to conversational, trust-based marketing, and continuing to adopt new marketing technology to reach new customers. Way before Netflix became the online video streaming application that it is today, the company ran a DVD rental service which had a refer-a-friend offer that allowed users to enjoy the app for a whole month free of charge. If we don’t trust someone, we refuse to believe anything they have to say.Â Think of the last time a salesperson tried to make a commission out of you by selling a particular product. Apart from earning points by submitting contact information of a friend or family member, upgrades made by the person they referred will also grant the given user extra credits. Though Tesla’s referral marketing strategies haven’t always broughtÂ success for the company at the very beginning of their quest, it still serves as a lesson that proves the importance of testing when creating a good marketing campaign. If we’re talking about extreme referral marketing, then electric car company Tesla definitely takes home the crown for this one. If you want to know more about how using prosocial or friend benefiting rewards can improve the performance of your referral program, then this recent research from Harvard Business School, Olin Business School and the University of California should interest you. For us to understand theÂ significance of referral marketing in this fast-paced market, let’s look into these primaryÂ reasons: Targeting the right audience plays a critical role in marketing. Not all rewards have to eat into your bottom line. Best Referral Marketing Examples. The refer-a-friend program of popular note-taking software Evernote is one marketing strategy that’s hard to miss. To redeem the offer, an email must be forwarded to one’s friends or family members before the offer expires. Dollar Shave Club. More recently, though, they’ve dialed back their referral program to a simple $5 credit each way, abandoning their more high reward program of old for a more stripped version. Dropbox, Slack, Uber and so many more is referral marketing, but that doesn’t necessarily mean that they will come, the wireless provider with the “Highest customer satisfaction rate” by JD Power & Associates, making a return multiple in excess of 42x, 92% of customers trust recommendations from friends and family above all else, 10 (Wait: 11!) Dropbox soon experienced a sixty percent increase in signups thanks to this clever marketing stunt alone. You need to stand out immediately if you want to make it. Tips to Encourage Customer Referrals, T-Mobile chooses Buyapowa to power its refer-a-friend program, How to win back lost customers with referral marketing, How to get customers to become Brand Ambassadors, Why success requires so much more than just referral marketing software, How we would improve Netflix’s referral program. Refer 25 friends, earn a free premium razor. Trust goes a long way, especially in the world of business. Rob Wormley puts it simply in this Wise Pops post: ask yourself “What are your customers motivated by? In 2016, Musk capitalized on his customers’ loyalty and launched a referral program which provides a great example of how to reward referrals with something other than pure product discounts. Are the core of every and all referrals … And, if these goods are exceptional enough for others to know about, it wouldn’t hurt to openly share this thought with loved ones. , the telecommunications company’s decision to look at referral marketing was driven by the fact that it was facing ever increasing acquisition costs per new customer. After all, turning your loyal customers into indirect brand promoters using various strategies will significantly boost the company’s customer growth and sales. Sample Referral Letter / Template Usually the best qualified sales leads you can get come from establishing a referral marketing program — asking satisfied customers to refer their colleagues to you.