Studies show that 92% of people would buy your product if it is recommended to them by a friend or someone they trust. 

That being said, referral marketing is also one of the most difficult forms of marketing to control. Your customers do the work, but they don’t work for you and are not obligated to find you leads regularly.

The good news is that you don’t have to hope for customers to refer new leads to your business. You can be proactive and set up a system that encourages your customers to find leads for you

Why Use Referral Marketing

Traditional marketing (creating adverts, cold outreach, etc.) is time-consuming and can quickly become an expensive affair. With referral marketing, your customers assist you in promoting your brand and its products. 

Because of this, there’s little effort and expense from your end, as your customers recommend people to try out your product. 

People, in general, are more likely to consider purchasing a product when it is recommended to them by a friend or someone they know or trust (as opposed to a company telling them to buy its products).

Another advantage of referral marketing is the ability of a customer to target high-quality leads. A high-quality lead is someone who is interested in your brand and has the ability and intent to purchase its products.

If someone had a good experience shopping at your store, they will most likely tell a friend with similar interests to them to visit your store. Customers have a personal insight into the lives of the people they refer to your store, which is why they won’t just send anyone to you.

Key Factors in a Successful Referral Program

There are no set rules when it comes to designing a referral program. However, you will still be required to optimize your referral program if you wish to achieve the best results.

Remember, you are asking your customers for a favor. Your customers are not obligated to pass over new leads to you, even if you do offer them an incentive. 

Customers have to put in their time and effort to help you out, which is a big ask. So try and keep the process simple and easy for them.

The key factors to consider when designing a referral program:

Setting Up Your Referral Program

The guide below will assist you in getting started with your referral program. You can always customize your referral program to suit your customer’s needs.

It is recommended that you get feedback from as many people as possible before you launch your referral program. Customers can get discouraged with your referral program if they notice changes at a later point. 

Especially if those changes are not in their favor.

Define Goals

Before you get started, you should determine why you are implementing a referral program in the first place. Having goals in place will allow you to measure the success of your referral program.

The most common goals of a referral program are:

Clearly Explain the Referral Program

Your customers must be able to understand the referral program and accept your referral program. Explain the program in the most simple way as possible and setup tasks for your customers that are easy to complete.

Customers must understand clearly what is required from them to achieve an incentive for referring to another customer or sale.

If your referral program comes off as complicated with too many actions to complete, then customers will be discouraged to enter the program.

Remember, the customer has to dedicate their time to finding you, customers. They won’t be successful every time. So having too many steps to referring someone will take up too much of their time.

Pick an Incentive

Customers have to do most of the work in a referral program. While most customers are happy with referring a friend to your business, only a fraction of those customers is willing to do it for nothing.

An incentive can make it worth their while to take the time and source out new customers for you. The most common form of incentive is a discount at your store.

Offering a discount as an incentive is also the most simple approach. You can also offer points or credits that can be redeemed at your store. 

Using a points system is ideal when integrating your referral program into a loyalty program. Customers can earn points to move up to a higher tier in the loyalty program. Customers on higher tiers can be eligible for larger discounts. 

If you have a subscription-based or SaaS business, then you could offer a free product as an incentive. It’s common for subscription-based services to offer a free month of their service for referring a new customer.

It can be difficult for customers to convince other people to purchase from you. Because of this, it makes sense to offer an incentive for the person that is being referred to you.

With Airbnb, both parties are able to earn cash discounts through the referral program. This gives both parties an incentive to deal with each other in the referral program.

The Referral Program Must Be Easy to Use

It’s possible that a huge portion of your loyal customers might not be that tech-savvy, or have the time and resources to manage their referrals on an intricate or elaborate system.

Keep these customers in mind when designing your referral program. Make it simple and straightforward for customers to achieve their goals.

If your customers (and the new customers that are being referred) have to fill out too many forms or complete too many steps, then they will most likely leave.

Create a Landing Page 

It’s best to have a landing page dedicated to your referral program. This landing page can consist of all the information regarding your referral program.

You can direct customers to this page from your home page or from other marketing channels such as email or social media. 

Try to ensure that there is a clear call-to-action directing users to the referral program signup page. 

Maintaining a Referral Program

Once your referral program is up and ready, you will have to continuously update and improve it. 

The goal is to grow your referral program successfully with an ever-increasing number of referrers and new leads. It’s crucial that you dedicate time to making your referral program work.

Remember, a successful referral program will help you to drastically grow your business by constantly acquiring new customers, which is why it’s definitely worth your time and effort.

You can maintain your referral program by consistently promoting it, measuring its success, and receiving customer feedback.

Once you have collected the data you need, you can tweak your referral program for improved results.

Promote Your Referral Program

Because of the massive benefits that referral programs have, it’s advised to promote your referral program on all your marketing channels. The most common being:

• Website home page – Ensure that users can clearly navigate to your referral program’s home page. You can do this with a call-to-action on your website’s home page or inserting a link into the navigation bar.
• Email – If your company has an active email marketing campaign, then you can insert a link or call-to-action at the bottom of all emails. Or you can send an email out specifically highlighting your referral program along with information on how to join.
• Social media – Create posts to promote your referral program on social media. You can also pick out a successful referrer and highlight their success in the program on social media
• Blog – You can create banners and links that can be placed within blog posts. This way, readers will be able to immediately discover and opt into your referral program.

Measuring the Success of Your Referral Program

The easiest way to determine the success of your referral program is to put together all the expenses and sales associated with it. 

The most common expenses to include are:

Dropbox gives away part of its service for referrals. If you have a similar referral program, then you should take into consideration the cost of the service you are giving away versus the sale from the referred customer.

For Dropbox, they will have to total up the costs of all those 500MB space they gave away. Then compare that cost (along with other related costs) to the number of sales they made from customers that were referred.

Things are a bit different for eCommerce stores. If you just state that customers get a $10 voucher for everyone referred, then referred customers could purchase something for $5, making the referrer eligible for their $10 coupon.

This means that you could potentially give away more money overall for fewer sales. 

A way to work around this is to offer vouchers for both the referrer and the new customer, on condition that the new customer spends for a specific amount or more. 

For example, the new customer that was just referred should spend at least $150 or more at your store before both parties can redeem their voucher.

TL;DR

Referral marketing is still considered to be an effective means of acquiring new customers. This makes referral programs valuable assets for businesses because the more new customers you acquire, the quicker your business will grow.

Managing a referral can be time-consuming and difficult at times. However, you should still try to put in the effort to grow your referral program. 

Especially if you are looking to acquire new leads on a regular basis.

Have you worked with a referral program before? Share with us your experiences in the comments below.

Author

Jack Paxton is the co-founder of VYPER, a marketing tool that helps brands build email lists, social followings and revenue using viral giveaways, referral and reward programs. After millions of dollars spent testing different marketing strategies at his marketing agency. He then also co-founded Hyax a fast, conversion & design-focused course and funnel builder for creators.

Video interviews have become one of the most popular methods of recruitment. The Institute of Student Employers has reported that 49% of their members used video interviews as part of their recruitment processes in 2018. It is quite possible that you’ll have to face video interviews if you haven’t already. 

How you present yourself in the interview will make or break your chance of getting your dream job. In the following lines, you’ll find everything you need to know about video interviewing. 

What Makes Video Interviews so Popular?

Considering that nowadays almost everyone has access to the Internet, video interviews have become more accessible. The quality of video and affordability of video software have inspired employers to assess candidates through video interviews.

When it comes to the advantages of video interviews, here are a few that we must mention:

1. Saves Time

Video interviews save time both to the interviewer and interviewee. In a survey of 506 companies, 47% use video interviewing to shorten the time it takes to make a hire. 

The interviewer doesn’t need to set up a conference room or waste time waiting for the candidates to come. All they need to do is to set up a time and that is all. 

The interviewees especially benefit from this type of interview because they don’t need to travel to the place of the interview. They can take the interview from the comfort of their home.

2. Eliminates Geographic Limitation

Candidates across the world have a chance to land a job they want. The location is no longer an obstacle when it comes to job interviews.

Employers who want to hire remote talent can see their personalities through video rather than just read the CV.

On the other hand, if a candidate is out of state at the time of the interview due to some unexpected circumstances, a video interview will give them a chance to get that job despite the distance. 

3. Eases the Tension

Since the interviewees can take the interviews from their home, that environment will make them more comfortable. 

Instead of the unknown space in the office building, they can comfortably sit in their room. The familiar environment will make them feel more relaxed and they’ll be able to present themselves in the best light. 

4. Shows the Basic Knowledge of Technology

Despite the fact that technology is everywhere, there are people who are struggling with it. 

Even though video interview demands the basic knowledge of technology, it still shows the employer that the candidates know something about working with technology.

5. Helps with Elimination

Video interviews can give a more precise criterion for narrowing down the candidates for the main interview.

Phone interviews or aptitude tests can’t give the right presentation of the candidates. Through video interviews, the interviewer can get a better idea of the candidates’ personalities.

6. Enables Detailed Analysis

Pre-recorded videos can be very useful for employers because they can re-watch it as many times as they need.

They can analyze the footage without any pressure until they feel ready to pick a candidate. 

Types of Video Interviews

There are two types of video interviews and you can come across either of them. Different employers prefer different types of video interviews and they have their reasons for it. It is best that you are familiar with both and prepare accordingly. 

1. Pre-recorded Video Interviews

In pre-recorded videos, you’ll have access to questions in advance and record a video that addresses those questions.

You can have an impression like you are practicing for an interview rather than having a real interview. However, those who are intimidated by live interviews will prefer pre-recorded ones because they’ll have time to think about every question.

You’ll have to read or listen to audio recordings of interviews and then answer them one by one. The time limit can differ from 2 minutes per question to half an hour.

Some pre-recorded interviews just demand that you create a continuous video where you introduce yourself and address some usual interview questions such as why do you want that job.

2. Live Video Interviews

Live videos take place in real-time. You’ll connect with the interviewer and talk with him on the video call or conference. It is simply an in-person video that is conducted through video. 

The applications that are usually used for this type of video interview are Skype, FaceTime, Google Hangouts, and Zoom.

While live videos are more common, pre-recorded videos are a newer method but their popularity is growing. Digital marketers prioritize the pre-recorded interviews because they find that it is more effective when interviewees can record their interviews without any pressure.

What Do You Need for Video Interview?

Before you start thinking about the interview and how you’ll present yourself, there are other aspects that you need to consider for video interviews.

• Have the necessary equipment – It is crucial that you have a quality camera and a mic so that you can talk with the interviewer without any disruptions. Choose the webcam according to your budget and preferences. 

An external camera has better quality. So if you can afford to buy one that would be great. If you need some recommendations, check the Logitech C900 series or Creative brand. Additionally, feel free to use a headset if you have one since that will ensure the quality of the sound.

• Prepare a neutral background – If the interviewer sees a messy room in the background he won’t take you seriously. The best choice for the background is a white wall. Reposition the table with your computer or laptop if needed. In case you can’t do that, just make sure that the background is clean and tidy.

Having enough light is also crucial. Keep in mind that if the light source is positioned behind you, the interviewer will only see a silhouette. Aim for the natural light which will make the image clear. 

• Eliminate noises – Loud noises and commotion in the background are unacceptable. Ask your family to give you some privacy during the interview so that you can have the interview in peace. Also, shut the windows so that the outside noise doesn’t interrupt your interview. 

• Create a profile – For live interviews, you’ll need to create a profile on a specific platform. If you have an existing profile (on Skype for example) whose name isn’t adequate for professional purposes, it is better that you create a new one.

• Check your internet connection – Your internet connection should be good enough so that there are no interruptions or breakage of connection. Always choose a wired ethernet connection rather than Wi-Fi. It is faster and it is unlikely that it will cut out abruptly. 

Test out the internet speed on websites like SpeedTest. If your connection is poor, better go to a friend’s house or to an internet café than to risk your interview process.

How to Prepare for a Video Interview?

Preparation is the base of a successful interview. As the saying goes “practice makes it perfect.” Here are a few tips that will help you prepare for your video interview. 

Research the Company

In order to convince the company that you are the right person for the job, you need to show them that you appreciate their work.

Google the company and look them up on social media. See what their beliefs, goals, and opinions are. Notice their most notable accomplishments and if there is an opportunity to mention that in the interview.

Make Notes

If you are having trouble with remembering some crucial questions or facts, make little notes to serve as reminders.

You can put the notes on your computer screen so that the interviewer won’t see them and you can casually take a glance and remind yourself if needed.

Practice the Commonly Asked Questions

You never know what they can ask you during the live interview but there are still some questions that come across at practically every interview. It can be useful for your confidence if you think about the answers to some commonly asked questions in advance. Marketers suggest that the most basic questions during interviews are:

• Tell me a little about yourself?
• What are your biggest strengths?
• What are your biggest weaknesses?
• Where do you see yourself in five years?
• How did you learn about this job opportunity?
• Why should we choose you?

For more commonly asked questions and recommended answers head to Inc blog post. 

Test Everything Out

Just imagine this scenario: you have been preparing for an interview for hours, you had your confidence boost, and you feel all set to tackle any question. The moment for the interview comes and then the problem pops out – the camera doesn’t work. There you have an example of an interview nightmare.

Eliminate such possibilities by checking everything out. Test the camera, tone, sound, and anything else that you need for an interview. For example, if the interview will take place via Skype, ask your friend to give you a call on Skype and tell you if everything is working. 

Some Final Thoughts

If you are an active job searcher you are bound to encounter a video interview. Having all this information about this type of interview will make you more prepared for what is to come. 

When you complete all the preparation steps and when you know the right way to approach the video interview you’ll feel more confident and your real personality and vast knowledge will shine through. That confidence can be your advantage compared to other candidates. 

AUTHOR BIO:

Donald Fomby is a digital marketer and freelance writer. Currently, he works at PickWriters and his newest campaign focuses on promoting their affordable translation prices. Besides focusing his efforts on marketing, he is passionate about writing and sharing his knowledge with fellow marketers. He worked as a guest blogger for many renowned websites and he plans to further pursue his career as a writer and blogger.