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The Best Referral Program Software, according to Growth Marketing Pro, Hailey Friedman.
Hey there, it’s me – Hailey.
People often ask me, “What’s the best way to get customers?”
My answer every time: A referral program
What is a referral program?
A referral program is the easiest and cheapest way to get the highest quality customers.
Later in this post, I’m going to tell you the story of how I grew our referral program 10X in less than 1 month.
But for now, you should know that referrals are extremely powerful.
Table of Contents
Consumers trust their friends, family and influencers.
If one of those people tells a consumer about a product or service that they love, that consumer is now 25X more likely to make a purchase than they would be without that referral.
I’ve seen the numbers to prove it. A quick look at my Google Analytics dashboard and you could see that the average conversion rate of someone who landed on our homepage was 1%. Whereas the average conversion rate of someone who landed on our homepage who was referred by a friend was 25%.
In order to get your customers to refer their friends, family and colleagues, you need to set up a referral program.
Why a Referral Program is Great for Customer Acquisition
It’s cost effective.
If you’re spending money to acquire customers, building a referral program is one of the most cost effective ways you can do this.
You only pay per customer that signs up or makes a purchase.
Meaning you don’t have to waste money on impressions or clicks like on Adwords or Facebook. You just pay a set cost per acquisition. And you can set the cost per acquisition to anything you want.
You are essentially empowering your customers to become advocates and sales people for your business. That means, the legwork is in the hands of your customers, and both you and your customers stand to benefit. They can make money by referring their friends through your referral program, and you’ll make money too.
How to Set Up a Referral Program
First things first. Your customers don’t know that you are willing to pay them to refer their friends. So, you will have to tell them!
But before you tell them by sending them an email about your referral program, you want to make sure that you have a seamless referral process. In order to make your referral program seamless, you will need to purchase referral program software.
Why You Need Referral Program Software
Without referral program software, you risk creating a complicated mess for your customers.
I made this mistake back in my early marketing days when I was building the referral program at RealtyShares.
We hired a developer to build a page where people could quickly sync with their Google Contacts and mass invite their friends to sign up for RealtyShares. At the time, we offered to pay $100 for every valid sign up who completed their profile.
People referred their friends, tons of them, which was great.
Here was the downside: I wasn’t using referral program software, so there was no way for our customers to keep track of their referrals.
For example, there was no way for referrers to see which of their friends had signed up, or how much money they earned, or when they could expect us to pay them.
This created confusion.
The last thing I wanted was our best customers getting frustrated and confused. If they had no visibility into the status of their referrals and payments, then they would have a bad experience referring their friends.
If they had a bad experience referring their friends, they weren’t going to refer more friends in the future.
This was a problem that needed to be resolved ASAP.
The solution? Purchasing software to manage our referral program.
How I Grew Our Referral Program 10X With Referral Program Software
I spent a lot of time investigating the best referral program software for our business.
I landed on Ambassador, a tool that made it super easy to set up and manage a referral program. But most importantly, it kept all our customers happily in the loop on the status of their referrals.
Within the first month of implementing Ambassador, our referral program grew 10X.
Why? Because customers love when it’s easy to refer their friends and get paid for it.
Ambassador made sure that referrers got an email any time one of their friends signed up or whenever a payout was coming their way.
Ambassador gamified the referral process. This motivated customers to want to refer even more of their friends.
I love it so much that they came to RealtyShares to make a video case study of my experience…
You can try Ambassador here.
How to Create Your Own Referral Program
Tools like Ambassador make it really easy and intuitive to set up a referral program.
Follow these steps to get started:
- Create a landing page for your referral program. With Ambassador, you can create a branded landing page with instructions that describe how your referral program will work. When someone signs up, they’ll have the option to invite friends right away via email or copy their unique link. If they decide to use the email option, they’ll be able to sync with all their email contacts and quickly select which friends to send an invite.
- Decide how you will reward your referrers. Are you going to pay them in cash, via gift card or in future credit towards your product? At RealtyShares we used Amazon gift cards because they were quick, digital and sent via email. Ambassador made it easy to automatically pay our referrers by sending amazon gift cards via email.
- Place a tracking pixel on your site. In order for a tool like Ambassador to send out emails and payouts, they will need a way to track when someone signs up. By placing a quick html code into the header of your website, Ambassador will be able to track referred signups and take action right away by alerting all the parties involved.
- “You’re Invited!” Email: Write a canned response email template that will automatically be sent from the referrer to their friends.
- “Your friend just signed up” Email: Write a canned response email template that will be sent to a referrer every time one of their referrals signs up.
- “Your welcome gift is on the way!” Email: Write a canned response email template that will be sent to a new referral after they’ve signed up.
- “Your referral payment is on the way” Email: Write a canned response email template that will be sent to the referrer when a payout is coming their way. Don’t forget to ask for more referrals in this email 🙂
- Add a pop up referral widget on your site: This way, customers can invite their friends without even leaving your website at all.
Once you set up your referral program, it pretty much runs on autopilot.
The 12 Best Referral Marketing Software – The Complete List
1- Ambassador – Our #1 Pick for 2020
Our #1 recommendation is Ambassador. Why? It helps businesses automate the process of enrolling, tracking, rewarding and managing its referring customers, influencers, and affiliates. The referral software helps marketers acquire more best customers, faster, by leveraging the power of word-of-mouth marketing.
You can easily enroll customers, influencers, and affiliates in targeted and personalized referral campaigns. Companies can also manage all ambassadors, monitor key performance indicators, and optimize referral programs in real time. Ambassador provides the ability to offer and test different incentives for different campaign segments, and automate the reward process.
- Multi-campaign capabilities
- Versatile reward payment methods
- Good onboarding and customer support
- All-one platform
- Easy integration
- Can take some effort to get properly set up
- Could stand to have more customization for campaigns
- Some of the reporting could be more robust
The company asks for potential customers to contact them for pricing and schedule a demo of the software.
ReferralCandy is a customer referral program great for those just getting started. The web application is meant for online stores to boost sales. It features integrations with Amazon Webstore, Etsy, Shopify, Magento, and many other sites.
You can easily set up the program you want, customize program and rewards, change the way things look with the need for help from developers. The easy to navigate dashboard displays campaigns, analytics, and contacts. Reports are generated on how your campaign is going and how to improve it if needed.
- Easy to set up and get started on creating referral programs
- Makes it very easy for people to spread the word about companies
- Mostly a “out-of-the-box” software solution
- Very affordable compared to competitors
- Templates for creating email messages
- Monthly commission for the base plan.
- Can’t have multiple affiliate and referral programs.
- Limited bells and whistles
Friendbuy specializes in referral marketing programs and email capture widgets. Marketers can build campaigns, and A/B test and track results. The platform offers a turnkey, powerful referral engine for any business.
Businesses can also take advantage of widget editing and a mature API. Go beyond cookie-cutter referral programs and turn any idea into an actionable revenue engine.
- Ability to see a Facebook feed of what people are saying when they share your referral link.
- Widgets available
- Dashboard design could stand for some improvements
Prices for Friendbuy start at $99/month for the Starter (DIY) plan. The company also offers a 30-day free trial.
Special offer: We negotiated with Friendbuy to get you 1 month free + 25% off when you use this link.
VYPER is a marketing tool that makes it easy to run viral campaigns. Set up Referral campaigns, Reward/Loyalty Programs or even Giveaways and Leaderboards.
It leverages gamification and incentivization to stimulate engagement and share-ability to help grow your business faster and more efficiently!
The flexible builder makes it really easy to build branded campaigns the focus on your brands core goals. You can choose to display your campaigns as a website chat widget, landing page or embed form. You can even use these 3 options all at the same time if you like.
Visit vyper.io to create a free account.
- Flexible builder
- Tracks lead and purchase referrals
- Has a huge range of bonus actions
- Uses a points system for milestones, tiers and placement winners
- Has a free plan
- Free plan only has 250 leads and $250 revenue a month limit
- They just launched version 2.0 so not a huge amount of examples yet
Visit vyper.io to create a free account.
5- Referral Rock
Referral Rock helps companies grow through word-of-mouth marketing. With the referral software, companies can put their referral marketing on autopilot. Referral program software makes it easy for your customers to share your business through a variety of features, including one-click access and sharing to social media, default sharing messages, and dual-side rewards.
The referral program software also makes referral marketing easier for businesses through easy setup for campaigns, email notifications, and one-step Google Analytics. The automatic referral attribution and integrated referral widgets are also fairly useful in making referral marketing a channel for growth.
- Clean, user-friendly interface
- Easy to embed widgets
- Automated templated email messages
- One-click, call-to-action
- Great customer support
- Reporting is limited
- Lacks many customization options
Pricing for Referral Rock starts at $200 per month for its Starter plan.
Extole helps users acquire more customers with its referral marketing platform. With Extoles turnkey SaaS platform, marketers can create a complete, reliable, and efficient acquisition channel through refer-a-friend programs.
Using Extole’s platform not only enables you to have a successful referral campaign, but also lets you target with precision, capture the trust factor, and influence and acquire new customers through the power of social media. Focused on creating the most advocates from existing customers, Extole powers refer-a-friend programs for Vistaprint, Petco, Shutterfly, and more.
- Easy to use
- Track advocates and reward friends
- Fraud prevention/Abuse of incentive program
- Reporting is easy and provides good insights
- Lacks geo filtering capabilities
- Platform requires assistance from account manager for some actions/features that should be in the hand of the client.
Extole doesn’t display any pricing information on its website. Contact Extole to obtain current pricing.
InviteReferrals offers a simple referral marketing software with complete referral strategy, design, and implementation. The platform provides supposedly unmatched insights into your referral program, measuring everything from referrers, invites, referral visits, and referral installs to your top influencers in one powerful dashboard.
You can run different types of customer referral programs, such as giveaway campaigns, top referrer contests, and goal based customer referral programs.
- Social media optimized
- Seamless integration with third-party applications
- Several campaign options and types of rewards
- Analytic reporting
- No mobile version, limited campaign participants.
- There aren’t many design options
Pricing for Invite Referrals beings at $79 per month (billed annually) or $99 per month for a month-to-month plan for the Basic plan. A 15-day free trial is available.
iRefer automates the referral tracking and rewards process for your business and turns your customers into your best marketers. Grow your customer list with our powerful plug-and-play referral software, which seamlessly integrates with SaaS applications or websites.
All you have to do is copy and paste one line of code into your website, or use our WordPress plugin. You don’t need a developer. iRefer also includes 5 different opt-in form styles, which can be displayed on any device and in any language.
- Many install options, form builder, and reward tracking
- No need for developer assistance
- Seamlessly integrate with 1,000’s of tools you already use
- Some setup can take longer
- Has limited ESP integrations
Monthly pricing for iRefer starts at $29 per month for the Sprout plan, which allows up to 1,000 customer signups.
InviteBox is a referral software that makes it easy for businesses to create different types of referral marketing campaigns, such as instant rewards and sweepstakes. The platform includes all the technology you need in one package to create a referral program.
All marketers have to do is set the rules of their referral program and copy and paste the widget code into their website. The InviteBox software takes care of the rest.
- Easy to set up and easy to use
- Fast support
- More value for your dollar
- Can integrate with WordPress sites via a WP plugin
- There are some cases when you can’t customize the widget to ideally fit the site design
- It doesn’t create the most creative or amazing referral campaigns
InviteBox is a more affordable referral software, starting at $29 per month for its Startup plan. Businesses can save some money by paying for the software on a yearly basis. The platform also offers a 14-day free trial of its software.
10- Genius Referrals
Genius Referrals allows marketers to choose and customize the perfect template for their referral program in less than ten minutes. The software offers seamless integration methods and gets referral programs up and running in minutes.
There are also several options to choose from, letting businesses customize different types of programs, including flexible campaigns with multiple currencies and tiers restrictions.
- Easy to navigate
- Exceptional customer service
- Very flexible and customizable
- Several options for campaigns and integrations into existing programs
- Require a little bit of understanding of code and scripts, but customer support can help with this.
- Fulfillment is manual
Pricing for the Genius Referrals platform starts at $49 per month for the Essential plan. The company boasts that customers can pay for only what they need, switch plans at any time, and purchase extra features. A 30-day free trial is available as well.
11- Mention Me
Mention Me is a referral software platform that offers a powerful solution for referral marketing that is used by more than 300 brands across the world. The platform includes a “Name Sharing” feature that allows users to capture real world conversations. The company boasts that this drive up to 35% more referrals combined with other options for social sharing.
The platform also features A/B testing and best practice insights from the Client Success Team. The refer-a-friend platform is tailored to your brand.
- Software creates a smooth customer journey.
- Reporting dashboard is extensive
- Good insights into how customers are behaving with the technology
- No need for developers to help set up
- Support team are also very quick to help out with any requests
- There are a couple of things design-wise that would enable the platform to align with our design requirements better
- At times the options available are a little overwhelming
- Terminology between referrer and referee can get a little complex
- UX can be a little restrictive at times …
Pricing plans are customized based on business needs. To find out pricing, you will have to contact the company.
12- Referral SaaSquatch
Referral SaaSquatch is a customer referral platform for B2C brands that operate in the on-demand space and want to realize the potential of a refer-a-friend program to power growth.
The software is designed for on-demand businesses, consumer service/box subscriptions or online marketplaces with 5,000+ customers. The multi-channel referral software features funnel analytics, fraud detections, and more than 50 integrations with payment and marketing systems.
- Great customer service
- Able to block or flag referrals and screen for fraud
- Simple to implement and track referrals
- Have to contact support to change text or photos
- Limited customization
- Limited reporting capabilities
- Language in platform can be confusing
Pricing for Referral SaaSquatch is more on the expensive compared to some of referral softwares, starting at $499 per month for the Growth plan.
ReferralMagic is one of the most user friendly and simple referral marketing solutions, designed for SaaS businesses on the internet. It offers all of the features necessary to run successful referral marketing campaigns.
The software provides you with the tools needed to build multiple referral marketing campaigns simultaneously, in just a few minutes. ReferralMagic can also quickly integrate with several 3rd party applications.
- Full featured API
- Responsive and friendly customer support
- Easy integration
- Lacks some of the bells and whistles of other platforms
ReferralMagic offers all of the necessary features for a referral marketing software for a fraction of the cost of many competitors. Plans start at $39 per month. A 7-day free trial and 30-day money back guarantee are offered as well.
Are you convinced yet? I encourage you to get started building your referral marketing program with one of the tools above.
Other readings you might be interested in:
*Articles on this blog contain affiliate links that GMP receives a small commission from at no cost to you. We only recommend tools we trust. And never ones we don't trust.