Qualifying your referrals – why and how you should be doing it!

Qualifying your referrals – why and how you should be doing it!

The beauty of a referral program is that, when done correctly, it’s virtually risk free. In an ideal world a brand would only pay out a reward after the referred lead has converted (or been qualified as we call it at Referral Factory).

Here is an example: 

  • Jon refers Mary to use 123 Accounting to do her bookkeeping, offering her 5% off her monthly fee if she signs up using his link.
  • Mary accepts this offer and becomes a customer of 123 Accounting.
  • Once Mary pays her first invoice, the referred lead has now qualified and 123 Accounting can now issue Jon his reward. 

You’ll notice that in the scenario above, 123 Accounting had almost no risk as the reward was only issued once Mary became a paying customer. By qualifying your referrals, you de-risk your program because you only issue rewards after certain actions (predetermined by you) are met. This could be a lead converting to a sale, a meeting converting into a contract, or a referred trial user converting into a paying customer.

Why you should be qualifying your referrals 

  • It de-risks your referral program – because you only pay out rewards for conversions, not just leads. 
  • It motivates your referrers to behave the right way – only referring people who are likely to convert. 
  • It gets your referral program ready to scale – meaning you can automate getting referred leads, qualifying them, and in time even issuing the rewards. 
  • It allows you to notify your users when their referrals are successful and qualified. 
  • It makes it easy for you to identify who needs rewards and when they need to be issued.
  • It helps you find your biggest fans, ambassadors and referrers so you can build stronger relationships with them over time. 

How to qualify your referrals

With Referral Factory there are two ways:

If you don’t have a CRM system in place, you can manually qualify referrals by selecting the user you wish to qualify in your Users tab – click on the drop down menu in the Action column and follow the steps below:

  • Click “Qualify”. 
  • You will then be asked to confirm if you want to qualify a user. 
  • Click the Qualify button.
Qualifying your referrals - referral factory

Alternatively, you can connect your referral program with your CRM to send new referred leads directly to your CRM – from there you can qualify these leads using your standard business processes. Once the referral has been qualified in your CRM, the status of the user in your Referral Factory dashboard will automatically update to qualified.

Referral Factory currently has integration for : Hubspot, Salesforce, and Intercom. 

How qualifying your referrals helps you know who to issue rewards to and when

If you’ve qualified your referred leads you easily see how many referrals each user has made, which of those referred leads have qualified and which of your users need to be rewarded.

For example, in the screenshot below you can see that the User Kirsty has made four referrals. Of those four referrals, three have been qualified – that means, kirsty needs to be issued 3 rewards. 

Qualifying your referrals - referral factory - screen 2

You can also filter your referred leads by ‘Qualified Referrals’, meaning that with one click you can see which of your new referred leads have qualified (or converted) and which have not.

This is an easy way to see a list of your newest, qualified users. You can even export this list to run specific marketing campaigns to these new users! 

Qualifying your referrals - referral factory - screen 3

*In order to get access to our integrations and API, you will need to be on the Basic plan of Referral Factory or higher. You can see all our plans on our pricing page.