Referral Marketing: Why It’s Important For Your App’s Growth

  • By Amaia Ayaan
  • 21-05-2020
  • Digital Marketing
referral marketing
Creating an application takes a lot of time, effort and resourceful thinking. After launching the app, if it does not repay with a high recognition among users, it will be a total loss of your time. App developers expect their products to be regarded in the e-commerce market as a statue of prominence. However, this cannot be achieved without the marketing of the product. Users will simply never hear of your product unless a source carries the word to them. Although there are a lot of means to market your e-commerce app, referral marketing can help achieve your app's growth. Successful mobile apps development in Dubai attribute their booming businesses primarily to referral marketing.
 
Referral marketing is often referred to as word-of-mouth marketing, literally. This means that the application insists their users promote their product to their contacts via sharing or inviting them to join them. For many users, this marketing strategy may come as annoying and bothersome while they are using the app. The key to referral marketing is to create an enjoyable application that allows users to achieve a valuable experience, that will make them want to invite others, without being bothered.
 
Thus, it can be established that an app's popularity plays a crucial role in the overall success of the app, and referral marketing plays an integral role in aiding to its popularity. Many successful apps credit their success to the referral programs and to back this claim. Below are a few reasons why referral marketing is important for your app's growth.
 
BUILDS TRUST AMONG USERS
Our buying interests are often linked with the experience of others. It is completely natural for us to be a little paranoid while putting our trust in a new product. We do not only seek out reviews of the product that voice its credibility but we often consider the opinions of those that we know personally. Putting our trust into the same product that our friends or family have put their trust in seems more sensible. We know that family and friends would only want what's best for us and would recommend the product likewise. This is where referral marketing comes into play and acts as a bridge so that their product's recognition is extended over to others’ contacts.
 
BUILDS REPUTATION IN THE MEDIA
Social media has provided us with a privilege that very few people had in older times. Social media connects us into one platform where we can voice our opinions and views on any subject without feeling any restraint. Referral marketing, likewise, allows people to share your product on such platforms where they can freely provide potential users with their opinion on the app's functionalities and its value. Positive reviews can really play a vital in the improvement of the product’s reputation. More people will not only put their trust in your product but will have high expectations from the app’s services. This will help your product build a reputable image in front of the public and other brands. All of this can be achieved with a little help from referral programs which allows the app users to be able to provide a review based on their experience. A good reputation of your app in the social media community will help your product reach the public figures, who can further help you market your product. Bloggers, vloggers, columns writers, etc. have their professions revolving around giving their opinions and views on various subjects. For those who have a large fan base, can help with the success of your application happening overnight.
 
BRING THE FOCUS TO THE APP
Because of referral marketing, many brands are now seeing a significant change in the sales of their product through their app services. Previously, most smartphone users tend to switch to a website to buy a certain product rather than using their app. This decreases the value of the app as traffic decreases, and more people are drawn back from using it. A referral program can be customized and modified in accordance with the marketer. Your referral program can include special discounts for app users or offering special features that are not there on the brand’s website page. This will help with bringing the focus of your customers towards the app which will encourage its growth.
 
BENEFITS OF REFERRAL PROGRAMS FOR CONSUMERS
If you are following a certain referral program then consider yourself lucky. It’s natural for consumers to not exit a certain website or app even though they cannot find the product they were there for in the first place. Buying a product brings satisfaction to the consumers, and app developers can use it to their advantage in numerous scenarios, such as;
 
- Many consumers may presume the referral plans to be limited for a short period, because of the plan's layout. This will make the consumers think that they will be at a loss if they do not avail the opportunity of using the app to make a purchase.
 
- Consumers tend to see themselves benefiting from the exchange between their contacts, offered by the referral programs. Thus, making them more likely to buy from your e-commerce app.
 
- Referral programs allow people to hold authority, as they are encouraged to persuade others to buy the product from the app.
 
- App users enjoy being a part of referral programs when their app experience is met with their expectations.
 
- Referral programs encourage social engagement among people as they become more active in the promotion of the product. Studies show that people are more likely to purchase a brand that is recommended by a close acquaintance than they are from traditional advertisements.
 
- App users tend to stick with the referral programs even after the incentives or prime purpose has expired or is no longer available. People tend to honour agreements and will show consistency in the use of referral programs offered by the apps.
 
With that said, there are still certain things for you to keep in mind so that your people can make use of your referral programs at ease.
 
OFFERING VARIOUS CHANNELS
Offering different social media channels on your app such as Instagram Facebook, Twitter, email, etc. will make it easier for your app users to share the app link easily as they please. If your referral program offers a wide range of social media channels, consumers become more likely to send invites. This is for the reason that they are given the option of their favourite social media channel to use where they can be most active, and they can reach their friends and family without any inconvenience.
 
OFFER REFERRAL PROGRAMS AT THE RIGHT TIME
You need to be cautious of certain subtleties before insisting the consumers to buy your product. They certainly would not like to push to invite others without even having a full app experience. You must engage your customers with the app services and keep a check on their app activity. Consider a few factors to conclude that they are satisfied with the app experience. You can do so by offering a rating scale to rate the app and further guiding them to invite their other friends too.
 
INCENTIVIZE THE REFERRAL PROGRAMS
You can offer incentives to get them to make use of your referral programs, such as discounts, or free coins in exchange for an invite. They would not be bothered a lot by that seeing that the referral programs are in fact to their advantage.
 
CONCLUSION
Referral marketing has proven to be a great asset for app developers to optimize their apps. It not only brings benefits to the producers of the product but the consumers too as many referral programs tend to offer incentives. Inviting your friends who you can trust to accept the invitation, and accepting the invitation of friends you can trust, allows numerous companies to become successful against their competitors.
 
Referral marketing may sound like an easy practice, however, it can be quite challenging. But by testing, modifying and customizing the referral programs you can get your app on its road to success.

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Author

Amaia Ayaan

Amaia Ayaan is a professional digital content creator, SEO and editor having years of experience working for many different industries and recently working in the Mobile App Development Company. In her free time, She loves to watch movies, read books, and play console games.