There is a flood of new brands, flashy advertisements, and luring introductory offers in the market. Customers are bound to get confused and eventually tune out of the traditional marketing efforts. In such a situation, how can brands reach out to new customers without disturbing their budget?
Customers tend to build an instant affinity for and credibility with a new brand when the recommendation comes from a friend or a family member. Why not incentivize such referrals and make it a successful new customer acquisition engine?
Let’s find out what referral loyalty programs are and how rewards program platforms like Novus Loyalty help in dispensing successful referrals.
What is a Referral Loyalty Program?
Referral loyalty programs are a great way to reward existing customers for endorsing the brand to others while rewarding new customers for joining the community of customers. Two-way referral loyalty programs are a great way to reduce your marketing spend on lead generation and to bring down customer turnover by engaging them for a long time.
Using top rewards program platforms like Novus Loyalty, you can easily implement a robust referral loyalty program with a touch of automation and innovation.
Benefits of Referral Loyalty Programs
When you invest in a rewards program platform, you reap more than one benefit. Businesses are adapting to recent technological advancements due to their massive adoption by customers. Technology helps render a seamless customer experience and gather data that can help further refine loyalty programs. Speaking of referral loyalty programs, here’s how they help businesses build brand loyalty.
Expand Your Network
Referral loyalty programs offer access to the personal networks of customers. As brand advocates, they influence their relatives and friends to do business with a brand. Word-of-mouth marketing leads to organic and viral growth of the customer base.
Meet Valuable Customers
When referred customers interact with the brand, they already have a great deal of built-in trust as they have heard the personal experiences of their trusted people. Such customers have a higher lifetime value to offer as they do more repeat business with a brand compared to customers acquired through paid marketing.
Acquire Frequent Customers
Referred customers give you the maximum website traffic because they keep visiting it for more offers. Their frequent visits often result in repeat business. When they get reinforced in the form of rewards on every purchase, they tend to stick with the brand. It’s a rewarding loop.
Get Great ROI Value
Every business expects a great return on investment when they invest in a rewards program platform. Referral loyalty programs are low-cost and showcase high conversion rates. It’s cost effective in many ways. These programs are scalable and can bring good new business without emptying your pockets.
How to Spot the Right Rewards Program Platform for your Business?
There are many parameters on which you must assess a loyalty platform before making an investment decision. First, check if the platform is scalable and offers a customization option or not. The user experience is everything, so you must pay attention to the user interface to ensure that the rewards program platform is easy to use. Also, assess it for its integration capabilities, as it must integrate perfectly with all your other systems and tools.
If you’re looking for a robust rewards program platform for dispensing referral loyalty programs, Novus Loyalty is the ideal choice for you.