5 steps to create a new marketing channel
Read in 5 minutes how you can set-up a powerful and effective marketing channel using word of mouth. Nothing is more powerful than the influence of your friends about an experience with a product or service. In this blog you will read how you can create a powerful social-referral program and build a community of ambassadors.
Step 1 - Are you ready?
First step is to identify if your company / brand is ready to invest in a referral program. The following questions will help;
Are your customers loving your brand/ service. Yes or No?
What is your business model? Do you know how much an average customer spend during its lifetime, The Customer Lifetime Value (CLV)?
How much time and resources do you spend on average to acquire this customer, The Cost per Acquisition (CPA)?
You as a company should know who your “happy” customers are that experiences the value of your product and how much you earn per “happy” customer over a longer timespan. Last but not least you also know how much it costs you to acquire a customer. Now we can go to step 2
Step 2 - The offer
Giving back value to your happy customers to attract new look-a-like customers is a winning strategy. We know as a fact that investing in ambassador software to create a social refer-a-friend scheme can lead up to 5% to 30% of your monthly revenue, but you need to be willing to invest time and effort.
Combining the metrics from step 1 gives you the basic information to create reward scheme. Basically how much are you willing to give away for a new customer. Now you can set-up a custom reward scheme. Over time you will adjust and test multiple incentives to discover the perfect offer(s).
Step 3 - Technology
Are you developing the technology yourself or should you use SAAS technology? In-house build referral, ambassador software is very expensive it easily takes 1 or 2 FTE out of your organisation to build and maintain the software while you don’t know if the software is giving the expected results. A better strategy is working together with (Sellify) Software as a service company (SAAS) that delivers all the features you need for a minimal investment, while you also get the support and experience that you need.
You don’t have to invest in software.
A team of experts can iterate and help you increase performance.
You get direct results from a proven solution.
Software will be improved continuously .
Step 4 - Activation
Let’s say you are convinced that (Sellify) a SAAS solution is the best solution for your organisation. After setting-up a campaign we look at the customer-touch-points of your organisation. Our software is able to interact with your customer at multiple touch-points. In most cases it takes about 3 to 6 months to get it right and you get maximum result out of your campaign.
Step 5 - Learning
Discover the sweet spot. Get a new powerful indicator about the performance of your brand. Don’t look only at Net Promoter Scores but combine this with a KPI that gives insight in actual recommendations.