Across the business industry, AI-driven innovations have been pivotal in delivering a competitive edge to the companies, and the smart referral program is no exception.
If you want your business to succeed in a highly competitive marketplace, you have to implement artificial intelligence and deep learning in your marketing efforts.
An AI-powered smart referral program is the right way to build solid brand value and customer satisfaction.
How can AI enhance a referral program?
AI has emerged as a highly effective technology for building a successful smart referral program.
Here are some of the ways by which AI can enhance your referral program and how your business can benefit from its integration.
Lightning-fast data analysis
The success of your referral marketing strategy depends on how effectively and robustly you analyze your customer’s data.
It is this data that will give you customer-specific insights that you can use to create a successful referral program.
Your marketers can take over days or months to collect the data, evaluate it, and generate important analytics.
On the contrary, an AI-driven program will hardly take a few minutes to analyze an entire set of your organizational data, along with generating useful insights.
Any guesses, what’s better for your business?
More effective customer engagement
AI-driven chatbots can process hundreds of customer requests in an instance. Since the majority of the customer queries are generic, chatbots serve as a potent medium of customer engagement.
Through chatbots, you can resolve some of the most common questions asked by the customers and also prompt them to participate in your referral program.
You can also use AI algorithms to generate intent-based keywords from customer messages and provide an affiliate link as per their specific interests or behavior.
Additionally, chatbots will work 24×7, validate your leads, and collect the information you need to boost your sales.
Conversion rate optimization involves a high level of data collection and intrinsic analysis. It is an AI-driven feature that segments the traffic according to referral performance and traffic sources.
It sends offers to the most likely converted traffic and also allows you to track the performance of your referrals.
It is a powerful tool for monetization that allows you your affiliates to get a single link for all the offers.
The Smartlinks work on an ML algorithm that decides the offers shown to individual users. The algorithm operates by processing specific user data and sending recommendations that are most likely to be converted.
AI-processed contextual keywords
AI and machine learning algorithms can generate contextual long-tail keywords to optimize SEO specific to your smart referral program.
It enables you to create high-quality content for your readers based on your intent-based search keywords attributing to high conversion rates for a specific niche.
Checklist for a successful launch of an AI-powered referral program
AI technologies are ever-evolving with dynamic possibilities. Before the implementation of an AI-based smart referral program, make sure you carefully consider the following factors.
Foster a cultural shift within your organization
Your organization needs to explore different ideas to add AI capabilities to a referral program.
AI can indeed bring new insights, enhance your decision-making, and increment the success of your referral program.
However, implementing AI requires an intrinsic strategy to deploy an organization-wide cultural shift to help your workforce understand how AI aligns with your business requirements.
Integrate and manage your data before AI adoption
To fully harness the benefits of an AI-powered referral program, your business requires a focus on efficient data management, governance, and storage.
Data will be the building block of your company’s AI engine – deriving autonomous insights and enabling your business to work in ways not possible with conventional solutions.
Ergo, your organizational data must be appropriately tagged and cleansed to fuel your AI models. Before launching any AI project, optimize high-quality datasets to integrate them and obtain the accuracy required for AI projects.
Don’t think about the ROI
Business leaders tend to think about return on investment and total cost of ownership when adopting new technology.
With AI being an advanced and evolving field, it’s essential to pilot new projects with an optimum strategy. Allow your teams to participate in the process without thinking about a quick ROI.
Implementation of AI in your referral programs should start small to help your workforce get acclimatized with the concepts and discover any pitfalls.
Identify the problems you want AI to solve
For the success of your smart referral program, it’s pivotal to think about the capabilities you want to add by implementing AI.
You should create specific objectives to know how AI could solve business problems and provide value.
Be aware of ethical concerns
To successfully launch your AI-powered smart referral program, you have to complement the use of AI with proper governance, ethics, and trust.
- Data to be accurate and free from bias (age, gender, race, etc.)
- Compliant with regulations such as GDPR, ISO, and HIPAA
- Respect information privacy
- Use of AI should not pose a threat to any individual or organization
AI has been instrumental in enhancing every aspect of referral marketing. If you want to stay ahead of your competition, develop a dynamic strategy to leverage AI-driven smart referral programs to improve your brand value and growth.