What are referral emails?

Referral emails are a powerful marketing tool that can help businesses grow their customer base and increase revenue. These emails are meant to entice returning customers to recommend the company to their friends, relatives, and coworkers. Customers who have already made a purchase or demonstrated interest in the business are frequently given referral emails, making them more likely to suggest others.

Why referral emails matter?

Referral emails are a powerful tool for driving customer acquisition. According to a study by the University of Pennsylvania’s Wharton School, referred customers are 18% more likely to stay with a company than non-referred customers and generate 16% more in profits.

In addition to the benefits of referrals in terms of customer retention and revenue, referral programs can also help businesses reduce their customer acquisition costs. A study by the New York Times found that referred customers are four times more likely to purchase non-referred customers, and they also have a higher lifetime value.

Given these benefits, it’s clear that referral emails are an essential component of any successful referral program. By crafting compelling emails that incentivize customers to refer their friends and family, businesses can tap into the power of word-of-mouth marketing and drive growth for their businesses.

How are referral emails used?

Let customers know about your referral programs.

Send your consumers an email describing your formal referral program’s details. Make it simple for consumers to suggest their friends and family by giving them a pre-populated email or social media message, and offer rewards for each successful referral. Monitor the program’s progress and alter the rewards as necessary.

Leadfellow is a powerful software that can help businesses manage their referral programs by making it easy to send referral emails to potential new customers.

Create a stunning impact.

Initial impressions matter a lot when communicating via email. Studies have shown that within the first few seconds of reading an email, people form an opinion about it. These are some reasons why first impressions matter so much when writing emails.

Key points?

It establishes the tone: The opening of an email establishes the tone for the duration of the communication. If your email is well-written and interesting, the reader will want to keep reading. The recipient may be less likely to take your message seriously if your email is poorly written or sloppy.

It builds trust: When you send an email, you want to build trust with the recipient. This means presenting yourself professionally and credibly. If your first impression is weak, the recipient may be less likely to trust what you say or take the action you request.

It shows respect: Making a good first impression shows that you respect the recipient’s time and attention. By putting effort into your email and making it engaging and easy to read, you show that you value the recipient’s time and are serious about your message.

Here are some examples of successful referral email campaigns

Dropbox: Dropbox is a cloud-based file storage service that used referral emails to grow its user base. They offered both the referring customer and the new customer a free additional storage space when the new customer signed up. This incentive was enough to encourage existing customers to refer others, and the campaign was hugely successful.

Subject line: Invite your friends to Dropbox

Body copy: “Hey there, Do you know anyone who could benefit from Dropbox? Invite them to join and you’ll both get 500 MB of bonus space when they install Dropbox on their computer. It’s free and easy to use. Thanks for being a part of the Dropbox community!”

Why it works: This referral email is short and to the point, making it easy for recipients to understand the offer and take action. The reward of bonus space is a strong incentive, and the clear call to action encourages recipients to share the offer with their friends and family.

Airbnb: Airbnb is a vacation rental platform that uses referral marketing to acquire new customers. Their referral email campaign is designed to create a sense of excitement and adventure, while also offering a strong incentive for referrals.

Subject line: Introduce a friend to Airbnb and earn travel credit

Body copy: “Hey there, Do you know someone who loves to travel? Invite them to join Airbnb and you’ll both get $20 in travel credit when they complete their first trip. With Airbnb, you can find unique and affordable accommodations all over the world. Share the adventure with your friends and start earning travel credit today!”

Why it works: This referral email appeals to recipients’ sense of adventure and encourages them to share the offer with their travel-loving friends. The clear call to action and strong incentive of $20 in travel credit make it easy for recipients to take action and share the offer with their friends.

They were so successful that their referrals program is no longer open and no new invites can be sent.

Referral emails: 10 steps for success

1. Understanding your target audience is the first step in writing effective referral emails. Understanding their communication style as well as their interests, problems, and preferences is part of this.

2. Choosing the appropriate referral incentives is important because they should appeal to and motivate your audience. This could, among other things, be a discount, a free trial, or a gift card.

3. Make it easy to share: Your referral program should be easy to share and accessible across multiple channels, including email, social media, and messaging apps.

4. Create a compelling subject line: A compelling subject line increases the likelihood that recipients will open your email by being clear, succinct, and appealing.

5. Personalize your emails: Personalizing your referral emails can increase the chances that they will be opened and read. Use the recipient’s name and other relevant information to make your email feel more personal.

6. Make a call to action that is obvious: Your referral email should have a call to action that is obvious, like “Share with a friend” or “Join up today,” to make it simple for recipients to take action.

7. Use eye-catching images: Images can assist capture viewers’ attention and help you communicate your message more effectively. To improve your referral email, use pertinent photos or visuals.

8. Point out the advantages: To increase the likelihood that recipients will be inspired to share your product or service with their friends, your referral email should clearly explain both advantages.

9. Follow up with reminders: Sometimes, people need a gentle reminder to take action. Consider sending follow-up emails to remind recipients about your referral program.

10. Last but not least, it’s critical to gauge and assess the success of your referral email marketing strategy. In making modifications, you can gradually improve your program by identifying areas that need better.