Why your referral scheme isn't getting traction
Some invaluable data for understanding your audience
Hi there,
With Meta and Google Ads’ CACs knowing no limit (and getting increasingly fickle by the day), I’ve been working with more brands on referral schemes.
Now, a referral loop is an absolute classic in itself.
The unicorn of self-perpetuating growth - if only!
A while ago, I busted that bubble for some DTC brands, covering the key parts that you need to put in place to make a scheme really work.
However, what I feel like gets forgotten is their target audience’s behaviour in setting it up for success.
I recently came across a super interesting report that highlights how different behaviour is for different audiences when it comes to referral.
For example, older generations aren’t impacted by updates on their referrals vs younger generations who do want to receive them:
Or whether they prefer to be told about a program or find out about it themselves:
And finally most interesting of all the differences in how they want to hear about it:
Of course, this is mainly feedback vs. behaviour, but I found it so interesting to see the differences per audience and how rarely I’ve seen a brand consider this.
It is such a key reminder of why initial research for referral is important (I share some key questions in this article I wrote together with Thorsten Strauss).
So rather than just keep trying to grow awareness and communicate more, check out the report, conduct your own research and learn more about it.
If it is still not getting traction (and you know you have a product that is strong for referrals and an audience that tends to refer), then start focusing on testing that referral/referrer reward further, as that plays such a key role.
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Recommendation
I have zero connection with Buyapower, but I have to say their content is spot on. In doing referral research I also came across this great article by them which has 19 examples of high performing referral programs, so definitely check that out for further ideation.
An extra referral for you
Let me finish off this newsletter with one last referral: myself. I'm lucky enough to have Rachel joining me on projects, a talented growth strategist who helps me make a bigger impact for the brands I’m working with.
As a result, I can now take on another new client! I'm always looking for new challenges to support wellness and eco-friendly D2C brands.
If you'd like to have a free 30 minute chat about your challenges in growing your brand, I’ll help you work out what you need to focus on and if I could be the right fit. Don't hesitate to refer this offer to anyone you know!
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I’m still under the impression that referral isn’t a magic fix, but speaking to some top DTC brands and hearing the percentage of customers they have coming from their schemes, I see the potential for sure. However, as with any channel, it requires user research and step-by-step experimentation to get it working.
Daphne