Importance of Referral Marketing to Build eCommerce Brand Communities

Posted by Monisha Thangavel on  December 04, 2020  in Ecommerce


Just building a brand is not enough!! A community is what many eCommerce brands need.

Many eCommerce brands have been wondering about community marketing and its associated benefits. Through community marketing, brands have been building social media pages, tribes, and other ways to promote their brand to their audience.

They run ahead with the Word of Mouth marketing and through referral programs. Consequently, referral marketing lends itself to the origin of community marketing. Through enriched referral marketing, an eCommerce brand can build communities that support them and helps them to grow.

Almost half of the eCommerce realm has shaken its head to grow along with their community. If you are one among them, there are myriad ways to use referral marketing in building communities for your brand.

Let us discuss more the importance of building eCommerce brand communities and the necessary tips.

Why is building a community is important for an eCommerce store?

Very eCommerce brand deserves a community that gives more than they need. It gives the brand a warm welcome from the outside world.

Have you ever wondered why is it necessary to build a community for your brand? If you did, then the enlisted points will help you discover the importance of building a community for your eCommerce store.

  • Building a community for your eCommerce brand gives you loyal and potential customers who have an affinitive response towards your brand
  • Building a community also provides you a vital source of consumer insight. Instead of going behind a readymade focus group, you can literally depend on the honest feedback for your latest product by your customers
  • Above all, it provides you a valid social proof. Many new customers look upon your social proof and thus begin to take their first purchase in your store.

In the competitive eCommerce world, community building is not so easy. Though it seems difficult, it is not as daunting as you think. Many self-made online eCommerce stores have been turning their store into the highest profitable store within a short period. If they are on the list, why can’t you?

Every niche online store has a target community group where the active mommy bloggers and brand advocates promote their favorite brands. Through a savvy referral marketing strategy, there are high chances of turning their attention towards your brand.

How does Referral Marketing help to build communities and boost sales?

Referral Marketing, an effective form of marketing method, has drawn the interests of many companies. Companies including PayPal, Dropbox, Uber, etc has been transformed themselves into popular brands through referral marketing.

But, why those companies depend on referral marketing?

To be frank, the trust factor is the first and foremost reason for referral marketing. According to Nielson’s report, 83% of people trust their friends and their purchase brands.

When we see from the trust point of view, recommendations will bring in additional sales to any eCommerce store. Some customers wish to experience the dopamine thrill with the product that urges them to purchase the products from the eCommerce store.

Now, leaving the WHY factor aside, let us focus on the HOW factor now.

So, how does referral marketing helps to build communities for your eCommerce brand?

Any idea?

After coming across vibrant research, the enlisted reasons are the ways how referral marketing has become the reason behind building communities for your eCommerce brand.

Incorporates a personal touch with the customers

As consumers, every individual expects to get great discounts and vouchers all time. It helps them to spend more time in your store. When a customer gets a discount through a referral program, there are high chances of them posting on social media platforms that may attract their closed circle. This is how word of mouth marketing works.

Personal Touch with Customers

For instance, if your customers are adventure fans, try sending them personalized referral messages. The little touch will increase the number of the purchase rate. It will let them discuss with their like-minded friends. It is also an effective community marketing that brings like-minded people into the same purchase zone.

Our Retainful’s referral feature not only helps you to send personalized referral emails, but it also helps you send ultra-personal referral images that attract your customers.

Both the referrer and the beneficiary receive the same discount for their next purchase. When you let your referral program stick to the people’s minds, it creates a genuine brand community.

Emphasizes your customers as an individual to take part as a community

Firstly, customers are the individuals who wish to get treated especially across any eCommerce store. If you emphasize your customers with adoring benefits, surely they will get valued and so is your store’s revenue.

Emphasize your Customers

Appealing to your customers as individuals, the referral program is an amazing way to keep them feel valued and deepening your brand image to the customers. It helps in nourishing your growing community.

Many brands have been using this way in a prominent way that helps them to build their community. Let us consider Timberland. Timberland, the outdoor footwear brand, has conducted an amazing footwear program. It mainly highlights building its community focus.

Whether your customer invites a friend or multiple friends, that does not count. When your referral program benefits the customers, the eCommerce’s brand community grows with virtually limitless ends.

Connects offline and online communities with increased interaction

An eCommerce brand’s community has rarely transcended the digital world. Customers will always refer their friends for an amazing brand or referral program through which they have benefited. They come together as a direct referral.

Customer referral program

According to the statistics, around 83% of the customers are willing to make referrals. Though the number seems alarming, only 29% actually do. So, when the brand gets its customers together as a community, the deserving benefits actually happens!

Referral marketing is not limited solely to online experiences. When your customer feels a good gesture for your brand online, it will be reflected in their offline connections too. Your customer community is not only restricted to the online world alone. Encourage offline experiences to strengthen your customer base in the online world too.

Effective Tips to implement an amazing Referral program in your eCommerce store

Now that every eCommerce store owner knows the trending ways of doing referral marketing. But, how to introduce an eCommerce referral program? This is the frontline question.

As referral marketing seems the best aid in building communities, starting it without any strategic plan is not a wise decision. To make your referral program really amazing, here are the effective tips to implement. Take a look at it.

Make it a win-to-win scenario for both ends

Do you know why customers and eCommerce store owners love referral marketing? It is a win-to-win scenario where both parties will get benefited from it.

Share the Aura love

Your customers will recommend your brand to their friends only when they get a convincing experience from your brand. Similarly, the recommended person will do so when they get the same experience from your brand. This is how referral marketing actually benefits you.

Promote your referral program to its fullest

Just starting your referral program does not make any sense unless it is promoted. Promote your referral program that helps in reaching your brand to the nook and corner of the online realm. Make your referral program visible on social media platforms too.

Promote Your Referral Program

Nowadays, social media has become an advantageous platform that helps businesses and brands to reach their target audience. Many eCommerce store owners have been relying on influencers and are making their brand the most recommendable one to their audience. You can also make use of flash buttons or popup buttons for your referral program page that attracts your new customers.

Personalize the program as per the audience’s expectation

As mentioned earlier, every customer likes to get personalized offers. Do not forget to include the concept in your referral programs. Sending personalized referral program emails will be a great way to increase customer engagement for your online store.

Airbnb

About 79% of customers will get attracted to the personalized message or discount codes. Why not make use of it to attract your customers in a unique way?

Further using the personalized concept, the rate of response from the customers will increase. And, it also has a high probability of increasing your store’s revenue.

Ask for Referral at the right time

One of the most important tips is to ask for referrals to your customers at the right time. But, knowing the right time seems critical. When you build a community, you can have a complete track of your customer’s mentality.

Ask Referrals at the right time

Even if you have prominently depicted your referral program, add it to your homepage that brings a decent marketing strategy in line. Plan for the timing and make your social media promotion that attracts and reaches your target audience. At times, even a pre-order referral seems like a lightning deal for the customers. So, ask for the referrals at the right time.

Make your referral program user-friendly and understandable

The best referral program is the one that makes the customers feel super easy to deal with their referrals. Do not bring out a messy referral reward system that seems hard for the customers to understand.

User friendly Referral Program

Make your referral program user-friendly that adds value to your referral program. Moreover, try to list out achievable rewards that make the customers give a try. If a customer quickly understands the referral program, he/she goes forward recommending the brand. So, make it understandable and flexible too.

Final Takeaways

Referral Marketing, an effective marketing strategy, requires a low-cost per acquisition and is the trusted form of marketing. It helps you to boost sales and increase traffic to get successful outcomes.

In an eCommerce realm, there are several ways to do referral marketing. It may include contest referral programs, event referral programs, cashback, coupon code referral programs, etc. You can kickstart with any one of these referral marketing programs to build communities for your brand. Make use of these tips in a notable way to grow your customer base and reward your brand advocates.


Author Bio
Monisha Thangavel 
Monisha Thangavel
Monisha Thangavel is an ardent writer and a blogger carrying years of experience in different realms including eCommerce, Tech, and SEO. Her brevity rich writings flash a light upon the uncovered yet important points about WordPress and eCommerce plugins. Apart from content, Monisha spends her free time learning calligraphic writing.