header image of the blog title "Customer Contests and Discounts, Your Passport To An Effective Referral Marketing Strategy" with a blurred backgound of an old house and a text "SALE 30%"
header image of the blog title "Customer Contests and Discounts, Your Passport To An Effective Referral Marketing Strategy" with a blurred backgound of an old house and a text "SALE 30%"

Customer Contests and Discounts, Your Passport To An Effective Referral Marketing Strategy

July 19, 2018 Customer Referrals, Marketing, Marketing Automation, Marketing Automation Platforms, Marketing Tips, Online Marketing 0 Comments

When it comes to referral marketing strategy how creative can you get? Do you go all out with innovative ideas or do you play stay by doing what norm is? When it comes to getting customer referrals the more trendy, the more in, the more interesting, and the more innovative your approach is, the more you will likely get attention. Take a look at the viral videos on the internet; they capture the attention of the masses because they are In. The most followed accounts on Instagram and Pinterest gather followers because they are innovative and interesting. You get the picture right?

Today we will be going through the different methods that marketers use in their referral marketing strategy, from contests to using social media, and even to give rewards. Take a look at their finished products and gather information that you can use for your next referral marketing campaign.

Woo Your Customers!

2 happy persons in a room doing the high-five sign with laptops, papers and coffee on a wooden surface, this is one of the example for an effective referral marketing strategy
Woo Your Customers – Effective Referral Marketing Strategy

Before you can ask them to refer your brand, you need to build a stable and solid relationship first. According to a study by Advisor Impact, 83% of customers will refer your brand if they are happy with your service. Prioritize in turning your customers into die-hard fanatics and watch as they promote your brand without much external motivation from you.

So how do you turn normal customers into fans? Expert and author of the Referral Revolution, Chris Chan, has this advice to say. Give your customers a great experience. A good experience by today’s standard is not enough to compel people to recommend you to a friend. Good is not good enough. A 5 out of 10 will never suffice, you need to aim for an 8 out of 10 if you want to leave a lasting impression.

Next step in wooing your way to referrals is opening the lines of communication with them. A great tool to use is a CRM software; you can easily exchange conversations with your existing customers with this. Set-up different mediums were you could be reached that way, and it will be easier for you and for them to pass on referrals. Plus, you are nurturing your customers as well which increases their Lifetime Value as clients.

Keep Things Fun!

team huddle composed of 5 person: 2 men and 3 women wearing corporate attires, this is one of the example of an effective referral marketing
Keep Things Fun – Effective Referral Marketing Strategy

Here’s where things get interesting, now that you’ve gotten the support of your customers for referrals, make things fun by adding twists like contests and games. Spruce up your customer referral program by research for or creating your own interactive activities for your referral marketing strategy.

There are a lot of referral marketing ideas online, you browse them up and add them to your portfolio. Take the cosmetics brand Human❤Nature, for example; they implemented a referral program granting 15% discount on purchases and a 5% commission for referring customers to the brand. This discount system rises up depending on the total amount of purchases made by the referred customer. Their engaging referral program has encouraged more customers to refer more people to the brand because they get incentives for doing so.

Dropbox, on the other hand, made a different reward system for its referral marketing strategy. Customers who participated in the referral program were given upgrades and bonuses in their accounts. Dropbox’s tactics showed that there are different steps in the referral that companies can take, it’s not limited to monetary rewards and gift cards.

Below we have more examples of referral marketing strategies that you can use for your business. Take your pick out of the choices below.

Customer Referral Campaign Programs You Can Use

1. Contests

white envelopes, ribbons, scissors, boxes, one teacup and a laptop placed on top of a wooden table, this is an example of rewards and contests for referral marketing campaign
Contests and Discounts – Effective Referral Marketing Strategy

Contests help you attract leads. A research conducted by HelloWorld says that once a month, 44% of people enter and participate in brand promotions and contests. Which means almost half of the people join contests. Not only that— holding a contest helps you build your brand awareness as well.  

Think of it as a way to interact with your customer. The more interaction you have with your customer, the more they trust your brand.  Ambassador says that 71%  of customers who are satisfied with a brand’s experience are more likely to recommend the said brand to their friends and family. Simply saying, contests helps build your customer’s trust, which raises the probability of customer referral.

How does all of this connect to contests?

People by nature, love contests which are why it is a powerful magnet for both your current customers and your leads. For your current customers it is an effective ‘trust-builder’ whereas, for your leads, it is an excellent way to start your relationship. So

Bonus Tip: Create a contest that is relevant to the products and services you offer.

A good example of using a contest for referral is Huckberry’s referral program. They transformed a usually repeated system into a contest, where the person with the most referrals gets $1000 as a prize. And get this, their customers who referred their friends did not go home a loser because they got $10 for each customer they referred. It’s a win-win situation for them and their customers.

2. Recruit-a-Friend

4 happy persons: 2 women and 2 men wearing corporate attires holding cut cardboard dialogues, this is an example of recruit a friend for referral marketing campaign
Recruit a Friend – Effective Referral Marketing Strategy

Word-of-mouth is the cheapest & best campaign out there that will surely boost your brand’s reputation. Ironic as it sounds, although it costs you no money through word-of-mouth, there are only a few numbers of companies that are able to succeed in using it. This is because, in order to be referred to others, you have to first gain your customer’s trust. Answer their questions, satisfy their needs, and most importantly never forget to give them an excellent customer experience.

Evaluate yourself, “Have I satisfied my customer’s needs?” “Do my customer trust my brand?”

There are tools online that you can use to help determine your customer’s loyalty using marketing automation CRM Singapore software. If they are indeed ready, then you are prepared to ask your customers for some referral.

According to Neilsen, a staggering 92% of people avail of the product or service that are recommended by their friends or someone they know. You can ask your customers to refer your brand to their family and friends. Offer them rewards and discounts if they are able to share your product with someone they know. And don’t forget to give freebies to the lead brought by their friend.


You can make your referral marketing strategy both fun and innovative while not sacrificing the value of customers you will get. By being creative, generous and attentive towards your customers who are referring and the customers who are referred, you can be sure to not only 2x but even 3x your sales. As long as you stick to the mindset of customer’s first, then you can make any business venture into a success story.

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