In the current era of social media that dominates, it cannot be denied that referral programs have become one of the most effective marketing strategies. The reason is that this approach allows businesses to reach a wider audience, attract the interest of potential customers, and ultimately increase sales very efficiently.
The referral program is generally very important because it helps increase reach and new users. Referral codes can also encourage potential users to try services or products because of the incentives. This can increase conversion rates, especially if the incentives are attractive enough. Furthermore, referral codes are a relatively cheap marketing method compared to conventional advertising. By leveraging existing customers to refer others, companies can save on marketing costs and earn high returns.
Meanwhile, in the crypto world, the importance of referral codes lies in their benefits in increasing crypto adoption, helping educate new users, encouraging users to access financial services, and increasing the liquidity of the crypto market in general.
This article aims to provide in-depth insight into the importance of referral codes, both in a general context and in the crypto world. The discussion includes what a referral is, how it works, its benefits, interesting types, and examples of referrals in crypto. Here is the complete review!
What is A Referral?
A referral program is a marketing approach encouraging customers to introduce products or services to others. This invitation can involve creating an account, sharing content, or inviting you to purchase. On the other hand, referral marketing is a marketing strategy in which consumers refer or recommend products to other people. Various factors influence a consumer’s decision to become a promoter of a particular product or service.
The referral concept itself is often applied in online business, especially in the payment-per-click model or what is known as PTC. Typically, PTC promotes a website through text links, banners, or script code.
According to research from Nielsen.com, as many as 92% of customers tend to trust products or services recommended by people they already know. This fact underlies the popularity of the trend of using referral codes in product promotions. In fact, according to official sources from Oberlo.com, referrals are considered an effective solution for companies to obtain free marketing through happy customers recommending the product. For example, there is currently a trend where content creators create content to recommend products or services through their social media accounts. After recommending and reviewing the product, the content creator usually provides a link or account to purchase the product. This is a practical form of implementing a referral strategy in the world of digital marketing.
How Do Referrals Work?
Please note that referral codes are a marketing tool often used in promotional strategies such as referral marketing. A referral code is a unique series of numbers and letters that allows for identifying referring members in a referral marketing program. Companies often use referral codes to promote their products or services. For example, through social media, a company can announce to customers that they will get a discount if they access the official website and enter a specific referral code.
A referral code’s working principle is quite simple and involves several steps that must be followed. The following are the general stages or ways to use the referral code that you need to know, including:
1. Create Code in the Form of A Link
The first stage is creating a referral code, usually provided by a particular platform. To get this code, users need to register and follow the procedures set by the platform. This referral code can then be a special link or unique code, and in some cases, users can create a custom code as desired.
2. Deploy Code Online
After getting the referral code, the next step is to share it. This code can be disseminated through various channels such as social media, YouTube, email, or conversations with friends. However, it is important to note that referral codes are generally only valid for new users who have not previously registered on the platform.
3. Redeem the Referral Code and Get Profits
When a new user uses a referral code, the system will automatically detect the user who used the code. After verification, the platform will calculate the commission or incentives that must be given according to previously established rules. According to platform policies, these benefits are not always in the form of cash because they can also be in the form of discount vouchers, reward points, or other types of incentives.
What are the Benefits of Referrals?
Knowing the benefits of referrals is important in marketing strategy and business development. Understanding the benefits of referrals will help businesses plan effective marketing strategies and build strong customer relationships. Here are some of the benefits of referrals, including:
1. Build brand awareness
The popularity of referral programs can help build brand awareness. The number of active members in this program shows that more and more people are talking about your brand. Thus creating more positive conversations around your brand and increasing its presence in the minds of potential customers.
2. Increase sales figures
According to the website businessnewsdaily.com, studies show that more than 90% of customers trust recommendations from their family and friends. Additionally, customers who feel confident in these recommendations spend up to 200% more than the average shopper. Therefore, referral programs can be very effective because they are considered a trusted source of recommendations, especially from people close to you.
3. Appreciate the customer
Referral programs allow loyal and active customers to earn rewards or incentives for inviting others to join. These rewards include additional discounts, reward points, free products, or other prizes. Giving awards to customers makes them feel appreciated and increases their loyalty to the brand or service.
4. Reduce costs
More than half (54%) of marketers, according to business2community.com sources, agree that the cost of referral marketing is lower per prospect compared to other marketing platforms. By providing incentives to customers, companies can motivate them to attract as many potential customers as possible, thereby minimizing the costs incurred in finding new customers.
Interesting Types of Referrals
Knowing the various types of attractive referrals is the key to designing an effective marketing strategy with high appeal. After understanding and getting to know the various kinds of attractive referrals, businesses can optimize marketing strategies, increase customer engagement, and ultimately achieve success in a competitive market. The following are the types of referrals that are interesting and need to be known, namely:
1. Social Media Referral
Referrals via social media (social media referral) occur when satisfied customers share information about a business on social media platforms like Facebook, Twitter, or Instagram. This type of referral effectively reaches a wide audience and gets new customers. In the digital era, social media referrals have a significant impact, because information can quickly spread to various groups, helping businesses expand their reach significantly.
2. Direct Referral
Direct referrals occur when satisfied customers recommend a product or service to their friends, family, or colleagues. This type of referral often results in high conversion rates because the person referred usually trusts the person recommending the product. Additionally, direct referrals typically have a low Cost Per Acquisition (CPA), making them an efficient marketing method.
3. Redeem the Referral Code and Get Profits
Users can exchange referral codes for certain benefits, such as additional discounts, reward points, or free products. The process of exchanging this referral code incentivizes users to recommend products or services to others. This way, users not only feel rewarded for their efforts, but it also drives growth in the customer base and increases sales for the business.
Examples of Referrals in Crypto
In the crypto world, referral programs are a common way crypto exchange platforms use to increase their user base and get more new customers. INDODAX, one of the leading crypto exchanges in Indonesia, has a mobile referral feature to earn commissions by inviting friends.
INDODAX is known to have provided a Referral feature on the INDODAX Mobile App to make it easier for members and users to introduce crypto asset investments to their friends. Through the Referral feature on the INDODAX Mobile App, INDODAX Members can also provide a Referral ID to friends, family, or anyone who doesn’t have an INDODAX account to register on the INDODAX platform. Apart from that, INDODAX members can also profit 10% from every transaction carried out by an INDODAX account that is successfully registered and KYC verified, per applicable procedures and conditions.
In this Referral program, INDODAX Members will be categorized as follows:
- Upline: Registered INDODAX members with a Referral ID can share referral codes with others.
- Downline: INDODAX members who register an account at INDODAX using the referral code.
How to Use the Referral Feature on INDODAX
The Referral feature can currently be accessed via the INDODAX website and via the INDODAX Mobile App which is available on the App Store and Google Play Store. The following is a guide to using the Referral feature on the INDODAX Mobile App, namely:
- Open the Android or iOS version of the INDODAX application, and click the Profile menu in the top right corner
- After entering the Account Settings menu, select “Affiliate Program”
- In the Referral Program menu, your Referral ID will be displayed and can be shared with other people
- This Referral ID is a unique code you can share with others.
Next, follow the steps to enter your Referral ID when registering an INDODAX account via the following website or INDODAX Mobile App:
- Visit the website indodax.com/or open the Android or iOS version of the INDODAX application
- On the INDODAX website, click “Register,” fill in the data, enter your referral code in the Referral ID column (Optional), and then click “Create Account”
- In the INDODAX Mobile App, click the “Register” button, fill in the data, enter the referral code in the Referral ID column (Optional), and then click “Create Account”
- Happy! By completing the registration process, you officially become an INDODAX Member, downline in the INDODAX Referral program, and start investing in crypto on INDODAX
Conclusion
In conclusion, referrals are a marketing approach encouraging customers to introduce products or services to others. This invitation can involve creating an account, sharing content, or inviting you to purchase. Referrals work by creating a code in the form of a link, then distributing the code online, exchanging the referral code, and getting profits. On the other hand, the benefits of referrals are building brand awareness, increasing sales figures, giving rewards to customers, and reducing costs. Furthermore, several types of referrals are interesting and worth knowing about. These include social media, direct referrals, exchanging referral codes, and getting profits.
Let’s Invest in Crypto on INDODAX!
So, now you understand what a referral is, how it works, its benefits, interesting types, and examples of referrals in crypto. Next, after you know what a referral is, now is the time for you to make a crypto investment. However, it’s a good idea to choose a crypto exchange that is safe, trustworthy, and officially registered, namely INDODAX.
With the best security services, trusted reputation, and official regulations, INDODAX is a safe and transparent crypto asset platform. The INDODAX Referral feature also provides the opportunity to gain additional profits by introducing friends and family to the INDODAX platform. By choosing INDODAX, you can invest with confidence and peace of mind because your crypto investments are in safe and trusted hands.
Let’s start investing in crypto only on INDODAX now!
