In today’s competitive customer acquisition landscape, building a strong referral program is not just an option; it’s a necessity. But with numerous platforms out there, how do you make the right choice? This quick guide aims to offer CMOs and marketing leaders a review of the key questions to ask when selecting a referral marketing platform that aligns with their business objectives.
Why Referral Marketing Matters
Data has consistently shown that referred customers are more loyal, more engaged, and more likely to convert. And recent research has shown that referred-in customers are more valuable than those from any other source, not only due to the fact that they spend more and stay longer, but that they are also more likely to refer in more customers themselves. In fact, our programs at Buyapowa have proven to boost customer lifetime value by 37%. So, referral marketing is not just another channel; it’s an investment in building strong, long-lasting customer relationships.
Narrowing down to the Key Questions
We already set out in various blogs, why we think you should outsource your referral marketing platform and, assuming that you do, how to determine whether you need an enterprise, mid-market or SMB level solution. And of course, we’ve highlighted that it’s not just about the software, you should be partnering with experts who can help you set up, run and maximize the potential of your referral program.
But as a CMO, you really want to hone in on the key questions to ask your team to look at when evaluating a referral marketing software provider. So here are what we think are the essential questions you need to ask.
Is your supplier in it for the long term?
Unfortunately in the economic current environment, it’s not unusual to see suppliers exit territories or even exit an industry altogether and, when you’re looking for a partner for the long term, you want to make sure that your supplier will be around to assist you on your journey years from now. So ideally you want to look at how strategic referral is to their business: is it their main business or just a bolt-on that can be jettisoned easily?
Questions to ask are how many clients they have using their referral platform and what percentage of total revenues this represents. What percentage of the team works on referral compared to other business lines like loyalty etc.? Is the team that built the product still in place? Of course, it’s not uncommon for agencies to disband the team that built the product after delivery and just keep a skeleton team on hand for maintenance and update.
Will your supplier continue to evolve the product?
Allied to the first question is whether your supplier will continue to invest in updating and improving the platform. Here you might want query what incentive the supplier has to continue improving the product. If they are paid a large one-off fee on delivery and a small annual amount for maintenance and update, perhaps not much. Whereas, a supplier that depends on an annual license fee will have every incentive to continue investing in the product to earn additional years of license fees. Allied to this you can can ask if the team that built the product will continue to work on it and perhaps you can ask for sight of the supplier’s roadmap.
Does your supplier have relevant industry experience?
Referral marketing is not a one size fits all game and platforms are often built with the needs of a specific industry or set or industries in mind. For example, some platforms have clearly focused on the retail industry, with a feature set and user journey that is designed for high volume retail referrals based on simple conversion actions like a sign up or purchase, and with limited integration with the client’s back end to verify that referrals have real value. Whereas others have focused their product on more complex conversion journeys and the needs of regulated industries, for example.
This affects not only the software, but also the expertise and support your supplier can provide. Clearly, a supplier with substantial experience in telecommunications, insurance and utilities will understand the needs of those industries much more than a supplier with a focus on retail clients.
Key Features to Look for
Once you’ve asked the above questions, you’ll want to look more closely at the features your chosen platform offers, these are some of the key questions:
- Integration Capabilities: Your chosen platform should seamlessly integrate with your existing CRMs, databases, and marketing tools. Look for platforms that have APIs and meet rigorous ISO security standards to ensure data integrity and security.
- Flexibility and Customization: No two businesses are the same. Choose a platform that allows you to tailor your referral program to fit your specific needs, audience, and industry.
- ROI Tracking and Analytics : A high-quality platform should offer robust analytics tools that provide insights into referral performance, customer engagement, and ROI.
Questions to Ask Before You Buy
In summary, these are the questions any CMO or Marketing Leader should ask when looking at a potential referral marketing provider:
- Is the provider committed to referral marketing? How can it evidence it’s commitment to the market and your territory?
- Will the provider continue to evolve it’s product? Does it have a dedicated tech team in place – ideally the team that built the product?
- Does the supplier have relevant experience in your industry?
- Is the platform scalable? As your business grows, you’ll need a platform that can grow with you.
- What support and training resources are available? You need more than just a tool; you need a partner in success.
- Can your supplier support your teams in each country in which you operate, in local languages and time zones?
- Is the pricing transparent and fair? Make sure there are no hidden costs that could inflate your budget.
- How can your provider integrate the referral program with your key CRM and databases?
- Does your provider provider insightful data and analytics to help manage and improve your program?
The Buyapowa Advantage
While there are various options in the market, Buyapowa stands out for its focus on continuous innovation in referral marketing. Our platform not only integrates effortlessly with multiple CRMs but also meets stringent security standards. We provide businesses with the tools to build scalable, customizable, and ROI-focused referral programs.
Wrapping up
Choosing the right referral marketing platform is a strategic decision that demands thoughtful consideration. Whether you’re a CMO or a marketing leader, prioritizing integration, customization and getting the right partner can drive ROI and make all the difference in your referral marketing success. If you’re interested in setting up your referral program or just need some advice from our experts, reach out.