As a business owner, you need to look for various innovative ways to draw new customers to your business. But, marketing your efforts for customer acquisition can be expensive.
Using marketing strategies for your existing customers is much more affordable than finding new ones. But, without new customers, it is impossible to grow.
So, to limit spending so much, you need to build an effective bridge – here it is, customer referrals.
Acquiring a new customer by using different marketing strategies is way more expensive than customer retention and using their power of referrals. To build a sustainable business model, you need new customers, and this can be done through word-of-mouth marketing.
In order to grow at an exponential rate, you can use tiered referral Incentives to win more customer referrals.
But, do referral incentives really work?
The answer is yes. Tiered referral Incentives is a great way to encourage customers to spread the word-of-mouth to promote the product and earn incentives for it. Your loyal customers can become your brand advocates and help you to bring new customers to the business by getting additional benefits.
Tiered referral incentive helps you to set tiers and plan on rewards based on the total number of conversions made.
Importance of Tiered Referral Incentive
Implementing a solid tiered referral incentive program can help the businesses to accomplish more than opting for new and expensive campaigns.
Over 62% of customers say they believe more in peer recommendation than marketing campaigns.
86% of companies have seen escalated growth in their business because of B2B referrals.
Top-notch enterprises use referral marketing as one of the best customer acquisition and retention strategies. If customers are happy with your product, they tend to refer to you, so when you provide them with benefits, they make more efforts to bring new customers. The tiered referral program offers top three benefits to the business:
- Utmost flexibility and suppleness
- Automated reward and bonus calculation
- Enticing customers through giveaways and contests
How Tiered Referral Incentive Motivates Users to Grow Referral Trees?
With NextBee’s tiered referral incentives, you are driven by the power of artificial intelligence and machine learning. So, now you do not have to worry about manual transactions or processing.
The referral program helps you to track the activity of customers with a smart admin panel and dashboards. This program’s features let you automatically calculate the referrals made and conversions done; based on it, you can reward the brand advocates.
Based on the needs and requirements of the business, tiers are set. Let’s see how you tiered structure motivates the customers to achieve more:
Encourage to Activate New Customers
In order to thrive in your customer base, you need to recruit new customers that lead your program. You can get your existing loyal customers tied on the Incentive tiers for sending customer referrals. Add contest and enticing rewards, so the customers are enthralled to work efficiently.
Increase Associate Productivity
The number of sales constituted the converts directly makes a positive impact on the success of the customer referral program. When your customers achieve rewards after completing the first tier, they feel motivated to work more.
NextBee has configured the smart program as a way that aligns the customer’s activity. So, once the customer reaches a particular tier and generates revenue, their Incentives are added automatically.
Whether it is a coffee house, hotel, clubs, retail, or an e-commerce store, customers like to visit it all. You can strategize their interest in your products by making them brand advocates.
Your existing customers have faith in you, so channelize that faith to reward them for bringing new customers to the business.
But, make it more fun and interesting!
When the customers see their reference is helping them to acquire benefits, they will want to get more. Thus, by using a tiered referral Incentive, you can encourage them to reach higher tiers and gain more rewards.
How Does Tiered Referral Incentive Help to Identify Lead Source?
Companies like Uber, Amazon, and so on have leveraged referral marketing. These companies have seen over 92% of people responding through customer recommendations. By using a tiered referral for your current customers, you can acquire new customers, and by giving rewards and incentives for conversions, you can increase their loyalty towards you.
NextBee‘s tiered referral incentives help to calculate the incentive for the customers when they refer your product or service to a new customer and get a conversion from them.
- Choose different criteria that define the purpose of your referral tiers.
- Use email-based referral marketing to acquire new customers.
- Set the milestones, and after completion of every milestone, add compensation.
- Encourage customers to refer their friends and family by enticing them with rewards.
- Provide rewards to the referral and referring customers.
- Set a minimum of 3 referrals to your customers for enticing gift rewards.
- Offer a higher incentive by setting extensive milestones on every referral achieved.
NextBee’s AI and machine learning module helps you track your customers’ insights that cover profiles, performance, and activities. The AI-driven engine helps you intensely motivate your customers to participate more in the referral programs.
Tiered referral incentive structure helps in building effective communication and driving new customer acquisition. Moreover, by using the tiered referral structure, you can significantly decrease the additional expenses on marketing campaigns and still impel your business in a much better way.