This episode provides a clear, actionable guide to implementing successful e-commerce referral schemes. It breaks down the mechanics of incentivizing customers to become brand advocates, offering practical steps to launch and optimize a program that drives word-of-mouth sales. Essential for e-commerce operators looking to leverage existing customer relationships for growth.
Grow your sales by word-of-mouth marketing with Raul Galera from Referral Candy In this week’s podcast, Trevor talks to Raul Galera about how to set up a successful online referral scheme. What is an eCommerce referral scheme? If your service is good, word-of-mouth marketing will already be happening for your store. A referral scheme encourages this behaviour by incentivising your customer to sell your brand to their friends. An existing customer will click on a link, send a referral code to their friends, and receive something, e.g. discount on a future purchase, a gift or a payment. How do eCommerce referral schemes work? Raul recommends the following steps to launch a successful referral scheme: Invite past customers Create automation to invite customers automatically after purchase. This could be a popup or an email Make your programme public. Advertise it on your site by displaying it prominently and creating a sign-up form What is the difference between affiliate marketing and referral marketing? There are two main difference between affiliate and referral marketing Relationships. In an affiliate programme, publishers will have a large audience to which they promote affiliates. This is a one-to-many relationship where the publisher does not know the person to which they are promoting. Referrals happen with a close circle, e.g. friends and family. Being more personal, these recommendations have a lot more power. Rewards. Affiliate programmes typically give most of the reward to the referral. The buyer may not get a discount. Referral programmes typically give a similar reward to both parties. What makes a good referral scheme? The best referral schemes reward both the referrer and the new customers. This incentivises the referrer to work hard on your behalf and the new customer to buy. What kind of vertical