The open rate of newsletters for a referred subscriber is higher than that of an average subscriber.
Publishers are increasingly leveraging newsletter referral programmes to get new subscribers by incentivising existing subscribers to become brand advocates. This fact that the lifetime value of any referral programme’s participant is higher than that of an average subscriber has further strengthened the trend.
The phasing out of third-party cookies has further added to the allure of newsletter referral programmes as it helps collect first-party data about the readers. Building a first-party database with users’ email addresses can benefit brands in the long-run.
But, the referral does not always guarantee success, as not all publishers can design proper incentive programmes. Since the tech stacks required for getting a referral programme started requires a lot of capital, improperly designed programs can result in loss of time and money.
[5 minute read]