This is the amount of times each person in your customers base is expected to make a referral. This is often seen as the average number of ‘leads’ generated by each person in your referral program annually. A strong ‘average referral rate’ is anything above 0.5%, and a poor average referral rate is anything below 0.3%. Here’s how it plays out: if your average referral rate was 0.5% and you asked 1000 people to refer - that means each person made 0.5 referrals, that would give you 500 new referred leads!

You need to promote your referral program! The best way to get more referrals is to ask. You need to be emailing your customers to ask for referrals, train your sales and support team to ask for referrals, put your referral program widget on your website, and more. Many people think that there is a magic trick to getting referrals but its much simpler than you think.... those who ask, get referrals!

The number one contributing factor to successful referral programs is simple... how many people you ask to refer! The more you ask, the more you get. Inversely this means that if you only have a handful of people to ask then you can’t expect crazy results. At Referral Factory we suggest our customers only launch their referral programs once they have at least 500 people to ask to refer. It might be worth looking at other marketing channels until you’re reached this milestone. Its a big thing to setup a referral program, even when using referral program software like Referral Factory, so it makes sense to only launch your referral program once you’re got enough people to refer. If you only have 20 or 30 customers you simply won’t get enough volume.

Since 84% of B2B decision makers start the buying process with a referral, we’re going to say YES, this absolutely works for B2B. Your referral program for a B2B business might be different to that of a B2C company - usually the rewards are much larger, and there is always an offer for the business being referred. In short a B2B referral program motivates customers to recommend your brand, product, or service to decision-makers at other businesses. This means that the leads they send your way already have a level of mutual trust for your business because the funnel they came through was a personal recommendation.

The most popular type of reward in referral programs depends on the audience, industry, and campaign goals, but generally, these 3 rewards tend to work best. 1) Monetary rewards which usually come in the form of cash, gift cards, coupons or Stripe credits. 2) Discounts and freebies which allow the person referring to get something at a lower rate or even for free, that they usually would have paid full price for. 3) Experiential rewards which are more like cool prizes, this is often the reward in a B2B referral program where it might be awkward to offer cash as a referral reward.

This one really depends, but at Referral Factory we see many companies boosting their lead pipeline by 14% - 28% after launching a referral program. This means you can expect around 20% more leads flowing into your business if you start asking for referrals. That’s huge! All you need to do is build and launch your referral program - you don’t need to worry about referral tracking as that’s taken care of by your referral software provider.

You can launch a referral program from as little as $95 a month. Yes, that’s for real! Most companies use a plug and play type referral software to get their program up and running, and that means the pricing to manage your program would scale as you grow. The more people you have referring, the more you could expect to pay. At Referral Factory the price ranges from $95 to $400 depending on which plan you choose and how many people you have participating in your referral program.

You sure can! Visit this page on our website to schedule your own demo.