How to increase the customer base by 21% in 2 months and make 11% more sales on referral traffic using the example of kubish

Many services only think about the implementation of the referral program in their business, when some do and are silent about positive results, fearing the actions of competitors. Others tried and abandoned this venture, because nothing came of it. However, since we decided that we would share all our successes and failures with the world, in this post we’ll give you a real referral mechanics, which allowed us to increase the number of sales and users by 11% and 21%, respectively, in 2 months.

What is referral traffic?
A referral is a user who came to the service on the recommendation of another user and used a referral link or entered a referral code during registration.

First, some statistics
For 2.5 months of work kubish.ru in Russia, we received:
-2398 users
-499 referrals - that's 21% of users
-69 users have referrals - this is 2.8% of all users
-62 purchases from 564 referrals made - this is 11% of purchases
-137,582 out of 1,250,753 rubles referral sales turnover.

As a result, 21% of referrals, which resulted 2.8% of users, generate an additional 11% of sales! Considering that we have gotten these sales at no additional cost, this is a very good result, proving that we need to deal with the referral program. Let's try to decompose the process of attracting referrals so that it is possible to shift this model to another business.
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User motivation
This is the first thing to pay attention to. It is important to clearly speak the motive why the user needs to refer the referral. For example, we pay 10% from the cashback of each referral. This means that if you call your friend to the service, you will always get 10% from his cashback. Many do just that and have already collected decent referral amounts, given that they themselves have practically bought nothing.

Referral calculations
The clearer the referral model will be explained, the more likely it is that users will understand and use it. It is important to write a clear script that explains what the user can get and how much to earn. Our script looks like this: For example, you have 100 referrals, each of whom bought $ 100. The turn has turned out 100 * 100 = $ 10k. The average commission is 5%, then the accrued cashback is $ 10k * 5% = $ 500, which receive each of the referrals. Your referral 10% is $ 500 * 10% = $ 50. This is quite a bit, but to get this money you don’t need to do anything, just tell your friends about the new service.

Earnings scaling
For the future forecast, you can resort to additional motivators that describe the scaling of referral earnings. We have it this way: the number of friends among the majority of users in each social network is several hundred, and if you take all networks, then thousands of users. Users will buy more than once. For example, if the operations described above happened not one, but 10, then the referral bonus will turn back $ 500. The online sales market is growing worldwide and only in Russia it will increase 5 times by 2020, so the turnover will only increase, and the referral bonus will grow with it.

Buns
To explain the referral mechanics, you can make a beautiful infographic, or simple video stories such as those that in a simple form tell about the advantages of your referral traffic:


Why referrals will lead exactly to you
If there are competitors, then you need to tell the user a legend that explains why you deserve his friend. It is important to understand that it is impossible to call the same friend to two identical services, therefore you should tell about your uniqueness. We have one of the largest databases (2000 online stores), which can not boast of competitors.

User portrait
This question is very important because it allows you to understand the portrait of the user who leads referrals. According to our statistics, these are the following people:
-Bloggers who write articles and make videos. We have cases where the video blogger just put the referral link in the commentary under the video, without even mentioning the service, and regularly receives referrals who make purchases. How much more would he have subscribers if he mentioned the service ?!

-Webmasters who think how to monetize their resources. They are well suited embedded button, which we describe below.

-Users of social networks. There are many cases when a user simply writes a call in his tape, and many users come to him.

- Forum users. Some get separate topics in specialized forums, for example, related to purchases and put there their referral links.

-Just friends. It's so simple: told a friend about a new cool service and get a nice “drop in” on the account.

Referral tools
Here on this page every authorized user sees the following tools:

- Social sharing buttons that already contain your referral code. That is, if you publish a post to a social network and your friend is registered by it, then it automatically becomes your referral:


Now we are also working on new tools, which, in our opinion, will increase the number of 2.8% of users referring referrals, say, up to 5% or up to 10%, which will help generate instead of 11% - 20% or 30% of sales! We will tell about these tools next time.

findings
Whether to use referral traffic is determined by each service itself, but given the fact that it is a free way to increase your turnover and expand your customer base, the answer is obvious.

PS Past popular publications:

• How to create 40% more sales in the online store using cashback services
• Without cuts. The second month of CloverR cashback service in Russia
• The experience of organizing a remote team in CloverR
• Without cuts. First month of CloverR cashback service in Russia
• How we did CloverR cashback service
• CloverR blog on HabraHabr