These 5 Emails Are a Monthly MUST For Small Referral-Based Businesses
Do you want to grow your small business with referral marketing? Your favorite clients are definitely the best way to find your newest favorite client. Creating raving fans is at the foundation of a successful small business, and email marketing is a great way to do it!
Email marketing allows you to easily increase your touch points with your clients, build brand recognition AND track client interest (we love that!). And there are a few types of emails you MUST be sending regularly to help you encourage referrals from loyal customers.
Let's break it down:
1) The Welcome Email
This is the first touchpoint between your company and your new customer. You want this email to set the tone for a positive relationship, so make sure it includes an introduction about who you are, the passion that fuels your work and what services or products you offer. Also, include information about your referral program and encourage customers to share their experience with their friends.
In a more robust email marketing strategy, this welcome email can be a welcome sequence (a series of emails), but for the sake of having your bases covered, make sure you send at least one!
2) The Referral Request Email
After a customer has had some time to get comfortable, you can send out an email asking them to refer your business to others. This is a great way to collect more referrals as it shows that you value the loyalty of your existing customers. You should also make sure to include information about any incentives or rewards for referring new customers.
We find it best to send this email when your client is at their happiest in their customer journey.
3) The Promotional Email
Piggybacking off of point two, make sure that from time-to-time you send promotional emails highlighting special offers or discounts for referring friends or family members (we suggest at least once quarterly for most smaller service-based businesses). Make sure these emails are interesting enough that they stand out in people's inboxes and entice potential customers enough so they feel encouraged to take advantage of the offer.
4) The Follow-Up Email
Once someone has referred your business, it's important to follow up with them and thank them for their help. You can also use this opportunity to update them on any new offers or rewards you may be offering in exchange for referrals.
5) The Monthly Information
Our favorite and some of our top-performing emails. This is the standard correspondence that makes sure you stay top of mind (even better if you can send this more than once a month). This can include updates about your business or industry, can feature your recent success stories, direct people to your blog or social media, or give your readers special gifts or discounts for being an insider. This should focus on providing free value to your existing clients!
By staying on top of these five types of email, you can keep your referral program running smoothly and ensure that all your customers feel appreciated and valued. As a small business owner, referrals are one of the most powerful forms of marketing available - so start sending those emails!
What Results Might This Strategy Have?
While results differ and it's best to consult with a strategist when building your marketing plan, a referral-based email marketing strategy such as this could result in the following increases:
Higher open and click-through rates since recipients are more likely to engage with content that comes from a friend or family member's recommendation. This leads to more touchpoints with potential customers.
Increased lead generation as people are more trusting of a brand that their network recommends. The social proof and personal endorsement can compel readers to take action, whether that's making a purchase, signing up for a free trial, or contacting the business.
Word-of-mouth marketing at a lower cost. Getting customers and your network to spread the word about your business through referrals is an affordable way to reach new potential customers and gain more traction.
Here's what you should be watching for in your data:
Open rate: Aim for at least 20-40%. This means 1 in 5 to 2 in 5 recipients are interested in your content. If it's lower, spice up your subject line or check for sender issues.
Click-through rate (CTR): 3-5% is decent, but higher is better. Compelling content and strong calls-to-action can boost clicks. If CTR is low, rework your messaging or offerings.
Conversion rate: Anything over 1-2% is good for small businesses. Provide incentives or adjust messaging if conversions are lacking. The higher the conversion rate, the more your strategy is impacting the bottom line!
Bounce rate: Under 5% is ideal. High bounce rates mean invalid emails or full inboxes. Clean up your mailing list and ensure you're reaching the right people.
Unsubscribe rate: Less than 1% per email is a good benchmark. High rates mean your messaging or frequency is off. Track this to keep engagement and mailing lists in check.
Other things to track:
Revenue from referrals (if applicable)
Email shares and forwards
Feedback from recipients
Making data-driven tweaks to your referral marketing strategy over time will help you boost results and keep your business growing.
Want custom-branded templates for this new email strategy? Our templates regularly drive above 70% opoen rates and 6% CTRs for our clients. Get in touch to get ahead TODAY!