Referral Software - What features should I look for Referral Software - What features should I look for

Referral Software: What features should I look for?

Not sure what to look for? This is for you.

Referral programs have proven to be an effective way to encourage satisfied customers to refer their friends and family to businesses. And with the help of referral program software, managing your referral program becomes easier and more efficient.

However, not all referral software offer the same features and benefits. Whether you’re a startup looking to scale, or an established brand looking to boost your customer acquisition strategy, it’s important to choose the right referral marketing platform for you. 

Here are some of the key features to look for when choosing referral program software:

1. Simple to use (no-code) 

The referral software you choose should be simple to use and not too technical. This allows you to do a lot more as a marketer! Both you and your team should be able to understand how to use the software without any difficulty. You’ll need to be able to build a referral program, promote it, track your referrals, and issue rewards – make sure the software you choose offers simple solutions for all of these elements. Look for software that offers an intuitive user interface and straightforward setup process (without hidden setup fees). 

Pro tip: if you can find software that offers referral program templates, which are essentially just pre-built referral programs, then you’re onto a winner!

2. Customization options

Your referral program should be tailored to your business’s needs and branding. Look for referral program software that allows you to customize the look and feel of your program, including the program’s landing page, emails, and referral pages. If you’re in marketing and you want to control as much as possible of this process (without having to hire a developer), then you should look for no-code referral program software that you can style using a builder. By using a page builder to create all your referral program elements, you can go from idea to launch in just a few days. 

3. And easy way for your users to share their referral links, and track their referrals

You want to find referral software that is not only easy for you to use, but also easy for your customers to use. They should be able to generate their referral links easily (or you can generate them on their behalf), and they should also be able to track their referrals in a simple way – we suggest a simple landing page they can access to track how many referrals they have generated and how many of those have been successful. Users DO NOT want to have to create passwords to access their tracking, so try to avoid using referral software that forces users to create accounts to track their referrals.

4. Automated referral tracking and reporting (often called referral analytics)

To effectively manage your referral program, it’s important to have accurate data on the referrals and rewards. Look for referral tracking software that offers automated referral tracking and reporting. This will save you time and help you make more data-driven decisions on how to evolve your referral program. Some of the metrics you want to track would be things like incoming volume of new referred leads, conversion rate of your referred leads, who your top referrers are, what social channel your referrers are sharing their links on, and more.

Automated referral tracking and reporting

5. Easy reward management

Your referral program software should make it easy to manage rewards. This includes setting up reward criteria, issuing rewards, and tracking reward history. The software should also be able to handle different types of rewards, such as discounts or free products. If you aren’t sure what you’ll offer as referral rewards and incentives just yet – then we suggest going for a referral tool with a wide range of options. Something that offers a wide range of vouchers and cash reward, AND something that also has the ability to issue your own rewards either manually, through webhooks, or through Zapier.

6. Integration with your CRM or payment gateway 

Integration with other tools such as your CRM or email marketing software can help streamline your referral program and make it more effective. Look for referral program software that offers integration with other tools you use, allowing you to seamlessly manage your program alongside your other business operations. The reason you’ll need to integrate your referral program into your marketing funnel is that you want to send your new referred leads into the workflows you already have setup, and you want your referral software to automatically track when they convert. And probably the most important reason you’ll need to integrate your CRM (if you have one), is to generate referral links for all your CRM contacts and push them back into your CRM. This means every time you talk to a customer, you’ll have their referral link handy and be able to ask them for a referral while your business is top of mind.

7. Data privacy and security

For larger organizations with data privacy concerns, it’s important to choose referral program software that offers data encryption and other security measures. Look for software that follows industry-standard security protocols and offers the option of data encryption add-ons. This will ensure that sensitive customer data remains secure and protected. Referral Factory offers a data encryption add-on that allows you to store your own customer data, book a demo to learn more.

Data privacy and security

8. Excellent support

Lastly, when considering referral program software, it’s important to choose a provider that offers excellent customer support. Try to find a team that is passionate about referral marketing so you can get support not only on the software front, but on the marketing elements too. Make sure the referral software you choose offers both chat and video support, because referral programs can be pretty complex once they are integrated into your tech stacks, so you’ll find that a video call might be a faster way to resolve your support issue than having chats back and forth. It’s also a good idea to read reviews and ask for referrals from other businesses who have used the software before making a decision.

By keeping these features in mind, you can choose referral program software that will help you effectively manage and grow your referral program. With the right software in place, you can encourage satisfied customers to spread the word about your business, leading to increased sales and growth.

One other important thing to note is that you should make sure the software that you choose to manage your customer referral program is geared for the industry you’re in. Let me give you an example: When it comes to launching a referral program for B2C brands you’ll need easy ways for your customers to share their referral links via direct message. But when it comes to launching a referral program for B2B brands you’ll need a way for your customers to invite their networks and colleges through channels like Email and LinkedIn.

Remember that the easier you make it for your customers to refer their friends, the more likely they will be to do it – so choose a referral platform that caters to businesses similar to yours already. Make sure the software you choose offers you many ways to create referral links for your customers, this is important because over time you’ll recruit referrers from many sources – maybe people register for your referral program after seeing a post on social media, or you upload your customers, or better yet you sync your crm contacts to update your contact records with referral links in your CRM.

Excellent support

Oh, and one last thing. Depending on the type of business you run, you’ll want to make sure the referral software you choose offers these types of integrations. This is crucial, because these type of integrations are what will communicate with your referral software when one of the referred leads you generated converts.

  • Online business – CRM integrations, or integrations with APIs and spreadsheets.
  • Traditional business – CRM integrations or connections to spreadsheets.
  • SaaS companies – CRM or Stripe integrations.
  • Online stores – Shopify or WooCommerce integrations.

If you make sure the software you choose has these key integrations, you’ll be one step closer to running a fully automated referral program. And as a marketer myself, I know there are no better words to read than ‘fully automated’ 😆

How many referrals you could potentially generate by using referral software?

It’s impossible to estimate the exact number of referrals you could generate, but there are some benchmarks that you can use to forecast how many new customers you could potentially acquire by launching a referral program.

Referral Factory recently shared data from their top performing 1000 referral programs, and we then averaged the results to create this graph. Below you can see how many referrals were generated on average, based on the number of customers that were asked to share their referral links with friends and family.

How many referrals you could potentially generate

The results vary per industry, but it’s pretty clear based on the above data that leads acquired through a referral program can help your business grow. This is because of one simple element that no other marketing channel can offer you – trust.

It’s simple. People simply trust recommendations from their friends and family more than they trust traditional advertising. So if your friend says this is the insurance company to take out a policy with, then you’re probably going to trust that recommendation far more than any recommendation you get from a Google search.

What companies have had success with referral marketing?

Tesla is a prime example of how referral programs can be used to generate hype and increase sales. In 2015, Tesla launched a referral program that rewarded customers who referred new buyers with a $1,000 credit toward the purchase of a new Tesla. This program was so successful that it ultimately helped Tesla sell 30,000 more cars and generated over $20 million in revenue.

What companies have had success with referral marketing

Nowadays, it’s easier than ever for businesses to launch their own referral programs thanks to the rise of no code referral software. These tools enable businesses to create and manage their own referral programs without needing any coding expertise. With these tools, businesses can easily set up a referral program that rewards customers for referring their friends and family. This can help to generate buzz and increase sales, just like Tesla’s program did.

By using no code referral software, businesses can easily track referrals and reward customers accordingly. They can also customize the rewards to suit their needs, such as offering discounts or free products. This not only helps to attract new customers but also encourages existing customers to become brand ambassadors and spread the word about the business.

Referral programs are a powerful tool for businesses looking to grow and acquire more customers. Whether you’re a small business looking to generate buzz or a large organization looking to boost your sales, a referral program can help you achieve your growth goals in 2023.

As a plumber, you may be wondering how you can implement a referral program to achieve the same success as Tesla. The answer is simple: ask your satisfied customers to refer their friends and family to your services.

Start by reaching out to your existing customers and thanking them for their business. Let them know that you value their support and ask if they know anyone who may be in need of plumbing services. You could even offer a small incentive, such as a discount on their next service or a small gift card, for every successful referral they make. In some cases it also works to run a give away, where your customers can refer their friends to your business for the chance to win a prize. Please keep in mind that if you want to opt for a ‘refer to win’ mechanic, you MUST offer a great prize. A branded cap, or sweatshirt, is not a great prize that will motivate people so try think about what your customers would actually want – and don’t just use the extra swag you have lying around your store room 😉

Make sure to track all the referrals you generate, and which of those actually convert, and most importantly – thank and reward your customers accordingly! This will not only help you keep track of your program’s success but also show your customers that you appreciate their support.

Additionally, make it easy for your customers to refer their friends by providing them with the necessary information and tools. This could include business cards with your contact information or a simple referral form on your website.

By implementing a referral program, you can tap into the power of word-of-mouth marketing and generate new business. Just like Tesla’s program, your referral program can help you increase sales and grow your customer base. So don’t hesitate to ask your satisfied customers for their support and watch your business thrive.

How much does referral software typically cost?

The cost of referral software varies depending on the features and functionalities it offers, the size of your business, and the vendor you choose.

Typically, referral software can cost anywhere from $100 to $400 per month for small to medium-sized businesses. For larger enterprises, the cost can go up to a few thousand dollars per month. Some vendors also offer annual subscription plans, which can save you money in the long run.

The pricing of referral software is usually based on the number of referrals generated or the number of users who participate in the referral program. Some vendors charge a flat fee for their software, while others charge a percentage of the revenue generated through referrals.

It’s worth noting that the cost of referral software is not the only factor to consider when choosing a vendor. You should also evaluate the software’s ease of use, customization options, reporting capabilities, and customer support.

In conclusion, the cost of referral software can vary depending on several factors, but it is generally affordable for businesses of all sizes. Before choosing a vendor, make sure to consider the software’s features, pricing model, and overall value proposition to ensure that it meets your specific needs and budget.

Referral Software Feature Comparison

Below we’ve listed a breakdown of the top referral program softwares on the market right now, and the range of features offered on their ENTRY LEVEL plans. Referral Factory offers the most features on the entry level plan point👇

Referral Software Feature Comparison