How to use Subkit's referral program to grow through Word of Mouth

The strongest way to grow your community is through word of mouth & referrals. Time and time again research has shown that customers referred by others (their friends, family, influencers, etc)... are more likely to convert and have a higher lifetime value than customers who find you through more traditional forms of advertising. Don't believe us? Check out the stats below.

So tap into your network!

Unfortunately, it's not as easy as sitting around and waiting for those conversations to happen organically. It takes work to get your name and message out there. According to data from Texas Tech University83% of satisfied customers are willing to refer products/services but only 29% actually do*.*** So you've got to close the gap. You've to keep bringing value to your subscribers, and you'll have to remind them to refer you.

In this playbook

What is word-of-mouth marketing & why it works

In this section, we'll explain what is word-of-mouth marketing, why it works as a strong growth tool, and how you can use referral programs to boost your word-of-mouth.

Word-of-mouth marketing is exactly what it sounds like. Having subscribers love your offering so much that they can't help but rave about it to their friends, family, coworkers, and just about anyone else. Word-of-mouth naturally happens when we're excited about something. It can be done online or off, and is the most meaningful driver of growth.

There are two main reasons why word of mouth is such a powerful growth tool for your subscription business.

#1 We're likely to trust recommendations coming from friends way more than we trust ads.

#2 It's better targeting. Think about it. A friend is likely to tell you about something they KNOW you'll enjoy. So the journey to conversion is much more straightforward.

You've likely unknowingly done word of mouth marketing yourself. Ever recommended an up-and-coming restaurant to a friend or given a new helpful app a 5-star review? You probably didn't even realize you were marketing (for free!) for a company. You just felt the need to share because, in your eyes, it would improve someone's life to know about a new place or product they'd enjoy. That's what happens when we find something great. And that's what will happen when you win over the hearts and minds of your subscribers.

Even though most word-of-mouth marketing is done completely free-of-charge, a small incentive can go a long way. That's where our referral program comes in. Referral programs can spark word-of-mouth recommendations by encouraging satisfied subscribers to share your subscription plans with their peers. You get a new subscriber, they (both referrer and the referred) get a discount on your subscription plan. Everyone wins.

What is Subkit's referral program

If you're not sure how to add a referral program to your Subkit subscription, then read the section below.

Here's the good news, we've done the hard part for you. We've implemented a referral program within our product. To set that up go to your Subkit provider dashboard. Click Marketing > Referral Program > Create Program. From there, choose the percentage discount and duration of your referral program for both referred and referrer. To make matters even easier, we've done the math so that you know how much value you're giving to your subscribers.

How to add it to your subscription

Simply adding a referral program to your subscription won't be enough to get your subscribers to share your offering with their peers. They probably don't even realize you have one. So it's your job to teach them how to use it, and to keep reminding them of the rewards they'll reap once they start sharing their referral link.

First and foremost, you need to be the expert here. So how does a subscriber get the referral program to work? It couldn't possibly be easier. Once you set up your referral program on the provider dashboard, a referral bar will show up on your Subkit page (see below).

Now every time a subscriber is on your page, they'll get an automatically generated unique referral link. They can copy and paste this link anywhere, anytime. As soon as one of their referrals signs up through the unique link, both referrer and referred will get the credit they deserve.