How Digital Businesses can build a stream of Referrals with: Email Marketing

Before we get into the MEATY stuff.

Let's just ponder over the fact what referrals are?

Is it another fad strategy or stuff that really works?

Then we'll see how t set up a referral system on autopilot.

Expounding on the topic referrals. I'd say referral strategy isn't something new. It has been believed that our good ol' Julius Caesar was the one who, for the first time, used referral strategies to recruit soldiers.

It isn't another fad strategy that would dissipate into the thin air.

It has been used by businesses, higher authority people for ages, now.

And here's why this strategy works so well.

Because it's foundationally built around the most important factor for any human to take any decision, that is trust.

Ask yourself how many times have you purchased something you don't trust.

I bet you won't find a single such instance.

Now let me give a brief overview of what referrals are.

Let's take, for instance, you enrolled in an online course, or purchased a software, or…any digital product.

And you were taken aback, not only by the product but also with the great customer experience like the customer support was quick to solve your queries. The product was of exceptionally high quality. Overall, you had a great experience using the product, and with the post purchase support.

In such cases, won't you tell your friends and family members to give that product a shot?

Chances are a few of your friends, family members, would try the product.

Because they trust you and believe you.

And the referral strategy leverages this trust, which is why it's so effective.

And that's a referral strategy in its simplest sense.

So, now you've an idea what referrals are, why it works so well.

Let's get into the JUICY details of how a digital business can build a referral system on autopilot.

But before, I tell you about the system.

There are a few prerequisites.

Yes!

This system won't work:

a) If your product sucks or is of terrible quality, which doesn't solve any of the buyer's problems

b) If the post purchase experience is pathetic. No one answers the buyer's queries after the sale

c) You should have an email list (if you're not capturing emails on your websites, exhaling a deep breath, what the heck on this earth are you doing)

Nail these three points and you'll have hungry buyers knocking at your doors.

Let's get into the details of the system.

For implementing this system, we would use email marketing for two reasons - it allows us to accurately track the referrals and advanced tools makes it easier to implement the system.

Here are 5-simple step formula to implement the system:

Step 1: Define Incentives and Referral Program Goals

Start by outlining your referral program's objectives.

Determine what specific actions you want your customers to take (e.g., referring to a friend, making a purchase) and what incentives you'll offer for successful referrals.

Incentives can include discounts, store credits, freebies, or exclusive access to products/services.

Ensure the rewards align with your target audience's interests and needs.

Step 2: Choose an Email Marketing Platform

Select a reliable email marketing platform that suits your business needs.

It should support automated email campaigns and personalized tracking.

Popular options include Mailchimp, ConvertKit, and HubSpot.

Verify if the platform integrates well with referral tracking tools like SparkLoop.

Step 3: Implement SparkLoop Unique Link Tracking Tool

Integrate the SparkLoop unique link tracking tool with your email marketing platform.

SparkLoop specializes in referral program management, allowing you to generate unique referral links for each customer.

These links track successful referrals, attributing them to the correct referrer and ensuring they receive their incentives.

Step 4: Create a Referral Email Campaign

Design a compelling email template with persuasive body copy and value driven content.

Clearly explain the benefits of the referral program, the incentives, and how it works.

Include the unique referral links generated by SparkLoop for each customer to share.

Make the email shareable and engaging, encouraging recipients to participate and spread the word.

Bonus tip: work with a copywriter to write a persuasive, value driven, story-based sequence of about 4–5 emails.

And it's totally up to you to decide when to send this sequence.

Some people, right off the bat, try to include it in their welcome sequence.

A few likes to send once they've built the relationship, or as a post purchase sequence.

You can try experimenting when to trigger this sequence.

Step 5: Monitor and Optimize Performance

Regularly monitor the performance of your referral email marketing system.

Track the number of referrals generated, conversion rates, and the overall impact on your business's growth.

Analyze the data to identify trends and areas for improvement.

Continuously optimize your email content, incentives, and targeting to boost results.

And with these 5-steps you can build a referral system on autopilot.

Cheers,

Have a great day!

P.S. Let me know, if you've any doubts or queries.

Because I know it was a lot to absorb in one go.

Too much technicalities involved.

Or…

If you'd like to share your methods, strategies, anything.

You can just reply.

That's it for today.

Have an amazing day!