Referral marketing strategy breakdown
I wanted to break down a referral marketing strategy after a friend texted me about “free Nutella but with less sugar and ingredients.” (It's the marketer in me, sorry not sorry.)
Although this strategy is specifically for retail, you can still steal elements for your own referral campaign.
First, my friend sent over a referral link that led to a page from Gooey Snacks.
Before I could get a free jar of healthy Nutella, I needed to enter my phone number. This is an excellent example of offering a freebie to get SMS subscribers.
The page's strengths:
- There are zero distractions on the page—it's just the promotion. Notice how there aren't even nav links!
- There's a clear CTA above the fold. The second button further down links to the form at the top.
What could be better? Including Gooey's value props, especially since the logo at the top doesn't link anywhere. Here's what I mean (excuse my mediocre Photoshopping):
Since my friend had told me Gooey has less sugar and fewer ingredients, I decided to go for it. After submitting the form, Gooey sent me a text with:
- Instructions for redeeming my free jar
- The deadline for doing so
- A helpful link to find a nearby store with Gooey
(Score—there was a store just 0.7 miles away from me.)
Gooey's text gets the job done. It has all the info people need.
But it could be better. Here's how I'd change it.
- Shorten it.
- Remind users the reason for texting ("try Gooey’s hazelnut spread for free").
- Use numbered steps for more clarity.
As excited as I was about a Nutella knockoff, I didn’t go buy it right away. So after two days, Gooey sent me a reminder text. Again, it included a link to its store locator.
You should do the same with your own referral strategy (and any other promotion, for that matter)—especially if there's a deadline. Remind subscribers, and make it easy to act with important info/links.
I have to admit, though... I still didn’t go get my free jar.
The next day, Gooey sent another reminder text. This one repeated its earlier instructions on what to do. It also said I’d be reimbursed via Venmo within 24 hours.
Notice how this second reminder has additional info—the Venmo reimbursement. It gives people more reason to act.
Finally, when I needed to get groceries, I went to the store—and also picked up a jar of Gooey. Following the instructions, I sent a pic of the receipt to Gooey.
Gooey sent two messages immediately, which:
- Confirmed reimbursement
- Gave me my own referral link
This strategy's strengths:
- It quickly builds an SMS list. Even if people don't act on the promotion, the fact they gave their phone number shows interest.
- It uses a double-sided incentive. I got a free jar while my friend got 50% off her next one for referring me. And now, I'm incentivized to refer someone else so I can get the same 50% discount.
One big weakness: It's not easy to act on. People need to buy the product in store, take a pic of the receipt, and then text it.
Gooey knew this. So they sent reminders to keep the promotion top of mind. This way, people like me would remember on our next grocery run.
But the biggest win of this referral strategy: Brand awareness for Gooey.
Nutella is a big household name. I probably wouldn't have given Gooey a shot if I didn't hear about it from a friend or get a free jar.
...And y'all, it's good! Definitely not Nutella but still tasty. 😋
Any thoughts about this referral strategy? What have you found most helpful in getting your referrals to take off?
