Referral programs are a powerful marketing tool, capable of turning your loyal customers into enthusiastic brand advocates and driving sustainable growth. However, their impact is only realized when your customers are actually aware of the program and understand how to participate. That’s why it’s essential to pair your referral program with the right mix of promotional tactics, compelling incentives, and clear, engaging messaging.
Ideas to Effectively Market Your Referral Program
Make the leap from email to SMS
There’s a time and place for email—a point we acknowledge in our article about whether or not email is actually “dead”. However, when it comes to marketing your referral program, SMS is by far the superior choice.
SMS boasts an unmatched 98% open rate and is typically read within minutes, ensuring your message reaches your fan base—unlike email, which can easily get lost in spam or promotions folders. While email allows for elaborate, visually rich templates, referral program marketing doesn’t need flashy graphics or lengthy explanations. A concise, well-crafted SMS with a clear call to action is all it takes to drive engagement and results.
Take this example from CookUnity to an existing subscriber—it conveys all the necessary information in three short sentences.
If you have yet to dip your toes into the waters of text message marketing, we recommend reading New to SMS Marketing Campaigns? How to Get Started along with Best SMS Marketing Campaign Examples.
Promote your referral program via social media
Social media is another effective idea for marketing your referral program, as shown by Spiffy’s Instagram. This car cleaning service not only created an Instagram post about their referral program but also pinned it to the top of their profile. While the post may not go viral, that’s not the point—it ensures their 4,000+ followers are aware of the opportunity, adding value for their social audience while also keeping the program highly visible and top-of-mind.
Market your referral program on your homepage
A prominent call-to-action or eye-catching banner can quickly capture attention and drive more participation in your referral program. As seen in the examples from Taco Bell and Wild Fork below, both brands highlight the benefits in a single, compelling phrase paired with an appealing graphic—proving that simplicity and clarity are all you need.
Let your audience promote their referral link to broaden their reach
Some brands ask participants to submit the contact information of their referral recipients, but this method can unintentionally limit your program’s potential. In contrast, offering your customers a unique referral code or link empowers them to share the opportunity widely—across social media or group chats—maximizing exposure.
Take, for example, Gym Shark’s referral program rewards both the referrer and the new customer with a $10 discount each time a new customer makes a purchase using the referral promo code. To acquire the code, only the referrer needs to submit their information. As a result, Gymshark customers are motivated to share their unique discount links in the captions of their TikTok and Instagram videos, helping the program reach a much wider audience.
Run referral program contests to drum up excitement
Infuse your referral program with a dose of excitement—and an influx of entries—by holding a contest a few times a year. Use SMS, social media, and email to build buzz for the sweepstakes, in which every genuine, redeemed referral earns an entry into a prize drawing.
The gamification and limited time-frame of the contest create a sense of urgency, motivating your customers to share their referral code right away—much like the excitement and quick action sparked by a text about a flash sale.
Build designated landing pages for the referrer and recipient
As straightforward as it sounds, creating attractive landing pages is a step many brands still overlook—so it’s worth emphasizing here. Too many well-established brands simply post the fine-print or skimp on visual design, leading to an on-page experience best described as “uninspiring.”
For an example of a simple but beautiful marketing landing page, check out this example from Block Advisors. The information is carefully presented to emphasize the simplicity of the program while also addressing any possible questions or uncertainties with an FAQ at the bottom.
For a bonus idea for your referral program page, look to CPI Home Security. Because referrals can only be completed within the app, they feature live animations that guide users through each step of the referral process, ensuring clarity and eliminating any potential confusion.
Measure referral program promotional and messaging efforts
Regularly measure and analyze the effectiveness of your referral program marketing strategies. Test out different types of content within your SMS campaigns—whether that be varying CTAs or accompanying imagery—to see which messages drive the most engagement and referrals. You can monitor your social media marketing with a similarly scrutinizing eye.
By tracking key metrics like click-through rates, shares, and completed referrals, you can continually refine your approach and ensure your promotional efforts are as effective as possible.
Additional Referral Program Ideas to Improve Success
Award a bonus to both the giver and the receiver
Awarding a bonus to both the giver and the receiver encourages more people to participate in your referral program. This approach gives current customers added incentive to spread the word, knowing they’ll be rewarded for their efforts. At the same time, new customers feel welcomed and valued, increasing the likelihood they’ll engage with your business.
Don’t make it hard to redeem
Keep the referral reward redemption process simple and straightforward, ideally consisting of only three easy steps. Avoid asking participants for more information than necessary, as excessive requests can discourage them from completing the process.
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Make sure you have a thorough FAQ
A thorough FAQ for your referral program helps participants quickly find answers to common questions. More importantly, it gives you the chance to address potential issues such as tracking referrals, reward distribution timelines, and what to do if a referral isn’t credited.
Evaluate the Appeal of Your Offering
Let’s say you offer your existing customers $5.00 off their next order when someone they refer spends $100 or more. While this might seem generous from your perspective, your customers probably feel quite the opposite. If your referral program’s incentive is underwhelming, even the most creative marketing tactics will fall flat. That’s why it’s essential to understand what truly motivates your audience and what they’ve come to expect. Ways you can get a better sense of this includes:
Track engagement metrics - When you last sent a text promoting your referral program, did it generate more clicks than your average SMS campaign, or did engagement fall short? If you experimented with a different reward—even for a limited-time promotion—how did that affect the campaign’s performance compared to previous efforts? Analyzing these results provides valuable insights into which incentives and messages truly resonate with your audience. By paying attention to these patterns, you can refine your approach and focus on what drives the best results.
Customer surveys - Direct feedback from your customers is invaluable. Use surveys to ask what types of rewards would motivate them to refer friends or family, and what they think of your current offer. Open-ended questions can reveal insights you might not have considered, while multiple-choice options make it easy to spot trends. Using a platform equipped with Conversational Intelligence—like Voxie—gives you the best of both worlds, as the tool can extract commonalities from open-ended questions for scalable analysis.
Competitive research - Seeing what kind of incentives similar companies give for referrals can grant you insights into what your customers expect.
Boost Your Customer Engagement With Guides From Voxie
The team at Voxie—the only SMS platform built solely for franchises and multi-location businesses—regularly shares insights into how to effectively leverage Direct Marketing and improve digital communications with customers. For other helpful readings, look to:
Franchise Marketing Strategies That Deliver Proven Results - Diversify your marketing tactics with this guide which explores strategies like localized partnerships, influencer relationships, localized SMS, and more.
Types of Messages—SMS, RCS & More—and How to Effectively Leverage Them in Your Marketing - Learn about SMS, MMS, and other types of messages. See direct comparisons and learn the pros and cons of each.
Top Marketing Tools for Franchises - Propel Growth & Efficiency - Build a purpose-driven marketing tech stack with these tools that cater to the specific needs of franchise businesses.
Local Marketing for Franchises – Scalable Implementation & Best Practices - Learn how franchises can leverage localized messaging and targeting to better connect with their primary audiences.
About the Author
Ali Spiric
Growth Marketing Manager at Voxie