Ways to Automate a Referral Marketing Campaign

 If you believe that your customers are your brand’s best advocates, you may be on to something.  According to ThinkJar CEO, Esteban Kolsky, 72% will tell six or more people about a positive experience they had with a brand.  

The above stats should be more than enough to give you the encouragement you need to launch a referral marketing campaign. 

Still, if the thought of emailing the thousands of customers on your contact list gives you pause, fear not. You can save yourself the grunt work by leveraging referral marketing automation.  

What is referral marketing automation? 

Referral marketing automation is the process of using technology (i.e., referral marketing software, email tools) to administer a customer referral program. 

Every referral campaign has repetitive tasks that are better automated. Imagine having to do all these things on a case-by-case basis: 

• Create and send out unique referral links or referral codes 
• Disburse cash rewards or other forms of compensation (e.g., gift cards) for successful referrals 
• Deploy referral emails (whether of the onboarding or reminder variety); and so on 

Manually handling such tasks would be inefficient and the entire process would take forever.  

That’s where referral marketing automation comes in.  

It saves you valuable time while leaving the heavy lifting of these mundane tasks to your chosen software platform. Meanwhile, loyal customers who sign up for your referral program will enjoy a streamlined referral process that motivates them to help you grow your customer base. 

Why automating referral programs is essential 

Here are four reasons you should automate your referral program and give your satisfied customers seamless experience: 

• Enhances referral conversion rates: Using referral program automation tools to run your program can give your conversion rates a boost. Every automation tool, from the referral marketing platform to the email software, helps ensure an efficient process. 

By automating all aspects of your program, you can ultimately ensure your happy customers who successfully refer new ones get the incentives they deserve on time. This will help inspire them to refer more customers to you, boosting referral conversion rates in the process.  

• Reduces manual effort: The biggest upside to referral program automation is how it reduces manual effort in administrative and routine tasks. Thanks to automation, these processes–from the sending of notifications about referral rewards to the delivery of these rewards–run in the background and on schedule. Mistakes typically attributed to human intervention can also be avoided. 
• Cost-effective: Automated referral programs are more cost-effective than manual referral programs. Since they require less human intervention, you ensure less expenditure on manpower. At the same time, you get excellent results with their streamlined processes. 
• Helps track and improve referral program performance: Automation can help you track the referral marketing efforts of individual advocates more efficiently. You can easily view key metrics (like conversion rates) that tell you whether your program is providing a decent return on investment. The data you receive will help you fine-tune your referral marketing strategy, ensuring that it appeals to the right target audience and yields optimal results.  

If you want your business to experience the above-listed benefits, follow in the footsteps of the 76% of companies that use automation. In particular, incorporate the use of technologies into your referral marketing programs. 

How to automate your referral marketing program 

But how exactly do you do that? Here are some tips: 

1. Promote your referral program automatically 

Before advocates can share your brand, they need to know your referral program exists. That’s why automated promotion is key. 

Use email marketing tools to create trigger-based emails that notify customers about your program after specific actions—like completing a purchase or signing up for your newsletter. Be sure to verify email addresses beforehand using an email checker to ensure deliverability. 

You can also use social media scheduling tools to post referral promotions at optimal times. This not only saves time but also increases visibility when your audience is most active. 

Additionally, consider placing referral widgets on your website. These can be embedded in high-traffic areas or triggered as pop-ups while users browse. Highlight program benefits clearly in the headline to grab attention. If needed, use generative AI tools to craft catchy, benefit-driven headlines. 

2. Automatically enroll customers into your program 

Promotion alone won’t guarantee participation—some customers may not take the time to sign up. You can solve this by automatically enrolling customers into your referral program based on specific triggers: 

• Purchase completion: Automatically enroll customers after they make a purchase. 
• Newsletter signup: Add subscribers to your program early and nurture them over time. 
• Form submission or survey completion: Use form triggers to enroll leads or customers who engage with your brand. 

Alternatively, import your email list into your referral platform to automatically generate referral links for each contact. 

3. Ensure seamless integration across platforms 

Automation works best when your referral platform integrates smoothly with other tools like your CRM, email marketing software, eCommerce store, and lead generation systems. 

This keeps your customer data in sync and eliminates manual errors or duplication. It also helps you maintain real-time visibility into program performance and user behavior. 

Some platforms even allow calendar integrations, so customers can book appointments before claiming their rewards—adding a personal touch that enhances loyalty. 

With connected data, you can also identify your strongest referral channels. If more users sign up via email than your website, for example, you can shift your focus accordingly. 

4. Sustain engagement with automated touchpoints 

Even if customers are enrolled, they may forget about your program over time. Stay top of mind by setting up automated reminder emails—monthly or quarterly—to keep participants engaged. 

Use your email tool’s segmentation features to re-engage inactive referrers. A time-sensitive offer or limited-time bonus can be the nudge they need to take action.  

5. Automate reward fulfillment 

When customers successfully refer others, it's crucial to deliver rewards promptly. Automate this process by linking your referral software and email marketing platform to create reward-triggered workflows. 

For example, once a referred customer makes a purchase, the system can automatically send a confirmation email with reward details. 

You can also allow customers to choose their preferred reward. Send a dynamic email with a link to a reward catalog, letting them pick what suits them best. Make sure your referral platform is connected to your online store so redemptions and inventory are tracked in real time. 

How to pick the right referral marketing automation tools 

We’ve discussed how you can use different technologies to automate your referral marketing campaign. But how can you choose the right referral marketing automation tools? Consider these factors: 

• Ease of use: Choose tools that are easy to use and have an uncluttered user interface. You don’t want to spend too much time figuring out how they work.  
• Customization options: Tools that offer plenty of customization options should take priority during your search. You’ll want to stay on brand when designing a program for your ideal customers. They should let you customize emails, offer templates, and more. 
• Scalability: As your program becomes more successful, the volume of referrals you get will grow. When that time comes, your chosen automation tools must be able to handle the influx of new advocates. Thus, make sure they’re scalable and can accommodate your needs well into the future. 
• Tracking and analytics: You’ll want tools that offer efficient tracking and analytics. You want data you can use to improve your future referral marketing campaigns. 

Other factors worth considering include the amount of customer support you’ll receive and whether the tools offer flexible plans.  

How Xero scaled referral marketing with automation 

Founded in New Zealand in 2006, Xero quickly grew into a global SaaS leader, boasting over 1,000 third-party solutions and 300 financial institution integrations.

But during the UK’s rollout of the Making Tax Digital initiative, Xero faced a critical challenge: how to scale its referral program efficiently while ensuring a seamless customer experience. 

The problem 
Xero, a cloud-based accounting software for small businesses, relied heavily on customer referrals during the UK’s Making Tax Digital rollout. However, managing physical reward distribution became a major bottleneck.

Stock issues, high shipping costs, and long delivery times led to a poor experience for participants. Customers couldn’t choose their rewards, and Xero lacked clear visibility into campaign performance or ROI. 

The solution 
To overcome these challenges, Xero partnered with Xoxoday Plum to digitize and automate its referral reward process. By switching to Plum, Xero replaced physical gifts with £50 digital reward links that were delivered instantly upon successful referrals.  

Customers could now choose from a wide selection of gift cards, redeem rewards immediately, and enjoy a far more personalized experience. Automation also allowed Xero to track redemptions and campaign results in real time. 

The impact 
The results were transformative: 

• 25% increase in referral conversions. 
• 20% year-on-year growth. 
• 60% boost in marketing ROI. 
• A pipeline of 1,900 new customers in just four months. 

This is the power of referral automation done right. 
With Xoxoday Plum, businesses can automate every step of their referral program—right from enrollment to real-time, digital reward fulfillment. No logistics, no delays, just a seamless, scalable experience that motivates your customers to refer and keeps them coming back. 

https://www.xoxoday.com/plum/demowith Xoxoday Plum experts to get started.