Referral marketing programs can represent a great boost for business, for example, from the Extol firm it is shared that when they are referred by a friend, people are 4 times more likely to generate a purchase, while those customers who are acquired through such a program they have a considerably higher retention rate. However, you should know that any referral marketing program must be accompanied by the correct metrics to know its performance and have benefits such as those already mentioned. That is why for this particular entry we will see what are those metrics that should be considered.
According to Business 2 Community, these are the referral marketing metrics marketers should consider if they have such a program in place at their brands or companies:
Number of active users sharing invitations
As the first metric and first point to consider in optimizing a referral marketing program, it is important to determine exactly how many active users Netherlands Email Address have referred their friends or acquaintances. This metric is usually measured within a specific period of time, for example, a quarter or a single month.
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If you want to improve this data, there are some facets in the campaign that are worth testing. For example, the call to action on the site, which motivates people to participate in the referral program. This can be modified in terms of text or location and even in relation to the incentive it presents.
According to the source, every company that is famous for growing its consumer base using referrals as a tool has been given the task of developing A / B tests extensively to improve this first key metric.
If you want a better understanding of how customers interact with spaces like your site, recording the total number of invitations per customer is a good idea. This data can provide insights into why some users participate in referral marketing programs and others do not.
Reference page visits
Brands that have a clear idea of how many referral program invitations have been sent can cross-reference this metric with the total number of visits to their referral page. This can help determine why more people are not participating in the program once they reach the referral page.
If the firm or the professional responsible for this campaign are satisfied with the number of people who arrive at the reference page but want improvements in conversions, then they can leverage the aforementioned A / B tests to evaluate aspects such as accessibility and implementation of the referral marketing program.
According to the source, it is important to make sure sending references is as easy as possible, and they should make sure that there are no problems with aspects such as the operation of the platform on the mobile version of the website.
Recipient click rate
According to the source, this metric is considered essential to improve the effectiveness of invitations to the program through a channel such as email. Customizing invitations has been found to be important if you want to improve click-through rate for invitation recipients.
As part of driving this metric, it is advisable to include elements such as a photo of the referring person within the invitation, and have a message that comes precisely from the referring individual, not from the company with the referral marketing program.
Customers can also be allowed to customize their referral codes to, for example, resemble a name, rather than having a generic combination of numbers and letters.
The more the invitation can be adjusted to make it more personal and quality, the better the chances of seeing a boost in click-through rate.
Recipient conversion rate
In relation to the previous point, once the recipient clicks on a referral marketing program, the next metric to consider is the conversion rate of these individuals. Consider how many actually sign up once they hit the show’s landing page.
As the source explains, the first thing that allows you to test this metric is the CTA on the landing page. Perhaps the location or wording could be improved, or the registration form could be more user-friendly.
Another mistake that can affect this metric is having a lot of confusing information on the landing page.
Once a recipient reaches the site from a referral email, the company’s goal should be for them to sign up for the service. Items such as additional mobile lead menus, offers, or other superfluous information can distract people from the main goal.
Consider using a specialized tool to evaluate your landing pages. With one of these you will be able to have more details about the performance of these spaces, for example, you will be able to know where visitors click on the page and how much they scroll before leaving the page without registering.