What are the best practices for referral emails regarding consent and incentives?
Summary
What email marketers say10Marketer opinions
Email marketer from Neil Patel explains that the best practices for a referral program include creating excitement and urgency. When the user feels as if they are missing out, they are more likely to refer a friend.
Email marketer from Friendbuy Blog shares that personalizing referral emails increases engagement. Use the referrer's name and include a personal message to make the recipient feel valued.
Email marketer from GrowthHackers shares that you should target your referral emails to users who are already highly engaged with your product or service. These users are more likely to refer others.
Email marketer from Referral Rock Blog shares that incentives should be relevant to the target audience and aligned with the brand. Consider offering tiered rewards or a combination of incentives for both the referrer and the referred friend.
Email marketer from Annex Cloud Blog shares that promoting a referral program effectively involves various channels, including email marketing. Emphasize the benefits for both the referrer and the referred, and make it easy to share.
Email marketer from Extole Blog explains that designing an effective referral program involves defining clear goals, understanding the target audience, and creating a seamless user experience. Test different incentives and track results to optimize performance.
Email marketer from Reddit explains that you should test different incentives to see what works best for your audience. Sometimes a small discount or freebie is more effective than a large, expensive reward.
Email marketer from Quora shares that depending on the country, sending referral emails without explicit consent can be illegal. Make sure you know the specific laws of the countries you are operating in.
Email marketer from Shopify Blog explains that consent is critical. Ensure referrers only send to people they know personally and who would be genuinely interested. Do not use purchased lists.
Email marketer from Ambassador Blog shares that ethical referral programs prioritize transparency and respect user privacy. Avoid deceptive practices, such as hiding terms and conditions or misrepresenting the value of the referral reward.
What the experts say6Expert opinions
Expert from Email Geeks suggests that the incentive should be for the recipient, not the sender, such as a discount if they order through the email.
Expert from Email Geeks advises caution due to the high risk associated with referral emails, referencing the example of Evite as an exception. Suggests that companies must be very clear when sending messages on behalf of someone else. They must limit what the sender can put message-wise, and provide a way for recipients to opt-out.
Expert from Email Geeks poses key questions to consider such as are you providing a way for your users to send emails, or are you sending emails to recipients provided by your users, do you incentivize it, and do you allow your users to provide content. The context is that Gmail provides a way for their users to send emails.
Expert from Spam Resource explains that it is vital that you understand and comply with all the various email marketing rules and regulations. To achieve this, you should do your own research and consult legal council.
Expert from Email Geeks suggests that when referrers do not create content, it seems low risk, but if something bad does happen it wouldn’t be described as best practice.
Expert from Word to the Wise emphasizes the importance of explicit consent when sending referral emails. They recommend against relying on implied consent, especially in jurisdictions with strict anti-spam laws.
What the documentation says4Technical articles
Documentation from IAB Europe explains that the ePrivacy Directive requires consent for storing information or accessing information stored on a user’s terminal equipment. This may impact how you track and attribute referrals.
Documentation from the FTC explains that referral programs that involve endorsements must comply with the FTC's endorsement guidelines. Disclose any material connection between the company and the referrer, such as incentives received for promoting the product.
Documentation from Mailchimp explains that under CASL (Canada's Anti-Spam Law), implied consent may apply if there's an existing business relationship. However, referral emails still require clear identification of the sender and an unsubscribe mechanism.
Documentation from GDPR.EU states that when processing personal data for referral programs, GDPR requires a lawful basis, such as consent or legitimate interest. Transparency is key, and individuals must be informed about how their data will be used.