Email is a key component in B2B customer-referral programs, according to “The State Of Business Customer Referral Programs,” a report put out today by Amplifinity.
Last year,
email was used in 72.7% of the referral programs studied, making it second only to lead forms, in which the customer fills out contact information. That's utilized in 77% of the programs. Lead forms
and email were often deployed in combination.
However, the picture was different in terms of actual referrals made.
Social media was first, accounting for 29% of the leads generated
last year. Email was next, driving 24%. Lead forms were third, with 23%.
In addition, email ranked third in effectiveness. Verbal referrals were deemed successful 32% of the time in 2016, and
lead forms in 19% of the cases. Email received a 17% rating, followed by print card with 12%.
The study shows that 13% of referrals resulted in conversions. But that figure rose to 30% when
salespeople were involved.
Amplifinity also reported these findings:
- In 2016, the average number of customers enrolled in a business customer-referral program was 5,850.
Of these, an average of 2,106 made referrals.
- Facebook was offered in 50.5% of the referral programs, Twitter in 27.3% and Linkedin in 13.6%. termed surprising.
- 61% of
customers make one referral, 34% make two to 10 and 5% make 11 or more.
- 22% of the overall leads were submitted by 1% of the referring customers. However, these resulted in a mere 1%
conversion rate. The rate was 6% for the top 10% of customers by referral volume.
- Gift cards accounted for 52% of program rewards last year. Checks were second, at 29%. Bill credits
were third, with 0.5%, tied with merchandise next at 9.5%.
- The average reward amount was $111, and the most successful reward value was between $41 an $100. But firms are more likely to
achieve a 13% conversion rate with the higher figure. Amplifinity urges clients not to skimp on rewards.
For this report, Amplifinity analyzed data from customer-referral programs run
on the firm’s referral platform. Data analysis was performed by Brian Schmotzer, a third-party contractor.
Amplifinity offers these tips for firms running B2B referral programs:
- Emails should be personalized and have strong calls to action.
- Referrals must be based on one-to-on interactions.
- Running referrals as a channel increases
conversions.
- Advocates must be engaged to boost referral activities.
- Make rewards commensurate with customer involvement.
- Automate your customer referral channel.