When you first think about adding a refer a friend scheme to your business, it seems pretty simple. It's just a unique link for existing customers to share with their friends right? But you think through a few of the edge cases for a bit and suddenly it seems like a bit of a big feature. How will they share the link? What journey should their friend take once they arrive at the site? How do we know the friend purchased and tie it back to the original referrer so they get their reward? How do we keep customers up to speed on how many referrals they've made and encourage more sharing? How will the customer service team deal with the inevitable edge case customer problems when they occur? Add the ability to AB test different rewards and creative and suddenly you've blown the quarter's development budget for the entire team.
Integrating Refer a Friend into your business
Bad news spreads twice as fast as good news. There was a great article on this in the good news recently about how people prefer bad news to good news.
The basis of a referral: Trust
At the heart of a referral is trust.
In fact a referral requires trust from start to finish. By our reckoning there are five types of trust that act as links in a chain and that are all required for a referral to happen...