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 a successful referral or when the referred lead has converted (or as we call it at Referral Factory – a qualified referral).
Here is an example
- Jon refers Mary to use 123 Accounting. He offers 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 successful 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 successful referrals
- De-risk your referral program – because you only pay out rewards for conversions, not just leads.
- Motivates your referrers to behave the right way – only referring people who are likely to convert.
- Gets your referral program ready to scale – meaning you can automate getting referred leads, qualifying them, and in time even issuing the rewards.
- Allows you to notify your users when their referrals are successful and qualified.
- Makes it easy for you to identify who needs rewards and when they need to be issued.
- Helps you find your biggest fans, ambassadors and referrers so you can build stronger relationships with them over time.
How to qualify your successful referrals
With Referral Factory there are four ways: to qualify referrals:
- Qualify referrals manually: Select 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.
2. Qualify referrals using an integration: 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.
3. Using our API: If you have a custom-built CRM or you are using one that we currently do not have an integration with, you can use our API to send referred users directly into your system as well as qualify them automatically when they perform an action on your website or platform that would count a successful referral.
How qualifying your successful 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 two referrals. Of those two referrals, one has been qualified – that means, Kirsty needs to be issued one reward.
You can also filter your referred leads by ‘Qualified Referrals’. 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!