How to Choose the Best Referral Tracking Software for Your Store

Referral marketing is nothing more than word of mouth advertising. It refers to people who have acquired a product based exclusively on this decision on the opinion or influence of another person. Therefore, it is essential for you to properly track who is referring you. When you are looking for the best referral tracking software for your store, it is important to understand what sort of tools you need help run and grow your business. Referral tracking software can help companies gather a wealth of information about users, whether it’s the sites where users typically spend time or products that have shown user interest.

What is referral Tracking System?Referral marketing program is made since people generally rely on the opinions of others in their environment or those they respect, which includes family, friends, influencers and celebrities. This makes sense, since it is very common for people to seek advice about movies, restaurants or books in their friends and family, relying on their opinion. It’s about sharing experiences, and consumers are always interested in sharing theirs regarding the brands or products they choose. Now, imagine your online store is referred by not one, but a lot of people. Then, you will have a homework to track which sales is referred by whom. Referral tracking system works like that. It gives your referrals a certain code or link that if buyers apply the code when checking out, you will know which referral is referring that sales.

When do you need a referral Tracking System?

Basically, if you want to track your referral sales correctly, you will always need to have referral tracking system an affiliate program software will help. Tracking is an indispensable tool in eCommerce and helps you to optimize your shop and increase sales, if you make the data evaluation correctly. Therefore, when you have:

1. Online store that has referral program;

2. Online store that wants to boost free traffic through referral marketing;

3. Desire to be successful in your referral marketing effort;You will need reliable referral tracking system.

Best Referral Tracking for Shopify

Shopify is the best e-commerce software on the market that allows users to create their own online stores at affordable prices. Shopify guarantees a low level of risk for entrepreneurs who want to open an online store. This is achieved due to the fact that you can create a Shopify account for free. This will allow for two weeks to personally verify that the platform is suitable for your business. You can get free access to all necessary functions. Use the trial period to decide which tools you need to continue. If you decide that, for whatever reason, this platform does not suit you, you can simply delete your account. Omni Startell, on the other hand, is the best referral tracking software for shopify in terms of price, features, and customer support. In short, the software allows you to:

1. Auto-signup your customer to be referral 

2. Enable smart Rewards

3. Deliver beautiful pop up form

4. Do referral partnership automation 

5. Provide discount codes, banners, and unique coupons to your referral

Why is  Referral Marketing Important?Referral marketing has established itself as one of the best ways to increase sales and generate conversions. One of its main components, references, is commonly used to promote a product or service, in a given environment, at an almost imperceptible cost. The opinion of your customers, if the shopping experience was pleasant and successful, can be a clear incentive to buy your products or services. To do this, it is important to create a referral marketing strategy that makes it easier for your customers to recommend you.

What is the difference between referral marketing and affiliate marketing?Word of mouth is the mechanism for the distribution of advertising messages in today’s fashionable “viral” commercials. Referral marketing has a similar effect, but is managed and initiated directly by the company. Typically, the client is given some reward for attracting other people. For example, for each attracted client, you can reward the account with cashbacks, coupons, or cash (let’s say $10 per referred person). It is important that the attracted client also receives something, otherwise the mechanics will not work well, for example, the same $10 into their account. So, what is the difference between referral marketing and affiliate marketing? The key difference is that, partners and webmasters participating in affiliate programs do this to generate income, not bonuses from the company. In many cases, they are not even clients of a company whose products or services are being promoted. Therefore, affiliate marketing involves the participation of professional marketers, and not ordinary customers of the company who are looking for an opportunity to save or receive a pleasant promotion from the brand. Both affiliate and referral marketing are result oriented. However, these are two completely different approaches to attracting clients. At last, both are effective strategy.

What is a good referral rate?

The ideal referral rate depends on many factors such as the type of product you have, what kind of reward you will give as well as the simplicity to deliver the rewards. Roughly, for e-commerce business, we often see that they will give 3-10% commission from referral purchase. Some other store even applies a flat value reward for every single buyer the referral refers. For example, a referral gets $10 Amazon gift card for every purchased customer they refer.  In case of store with digital product, the ideal referral rate can be higher. The average range is between 20% to 50%. 

How to generate referrals from existing customers?There are two ways you can do this. The first one is by automating the signup process as a referral once you acquire a new customer. This way, everyone who has purchased anything from your store is eligible to be your store referral. He gains instant access to referral code, banners, and more.  The second way to do it is by using manual sign up platform. In this case, you will provide a special sign up form to be referral then you approve it either manually or automatically. This is useful in case you need to understand who is interested to promote your store or business.