Vampires and Goo Goo Dolls make a case for referral marketing.
This has been a really busy summer. So, instead of my usual 'business book' reading, I've embarked on a guilty pleasure...reading the 'Twilight' book series. My experience getting caught up in this vampire soap opera made me think of how the success of this book has been perfectly viral. And a nice example of remembering to find your customer enthusiasts and help them refer your product or service. Even reward them.
I've been talking all about this book to my friends and family so now most of them are reading the books and are hooked. (I think I created our own Edward Cullen fan club...but I regress). Perfect example of what customer enthusiasts can do to expand your business. And granted it's probably easier with a product so engaging (and passionate like the Cullen family of vampires...and don't even get me started on the Goo Goo Dolls). What about a business that might not be so engaging, especially in B2B. What about those enthusiasts who are not so open, or confident, to share? You may need to work harder to help these people pass the word. They need more incentive to think about your company.
It isn't enough to just ask to 'refer a friend'. I haven't found that to be successful for clients unless linked to an incentive. Perhaps you do have a program to incent customers to refer friends. If not, why not pass along a special incentive that they can send to their friends or co-workers. Don't forget the part about the incentive for the friend to make a purchase or set a meeting. You'll need offers on both sides to maximize results. For marketers, we know this stuff. But not many are actually doing it. Thus the fuss about word of mouth and viral marketing. Referral programs are something we can develop to assist the WOM and viral marketing efforts.
And a suggestion on the offer: Try not to use dollars off as an incentive for new business (for the 'referees' in this case). Dollars off might work with current customers who are committed to your product or company, but they rarely work for someone not convinced yet. Think of building trial and minimizing risk with that group.
Marketing Sherpa has a nice case about a successful referral program. I want to share because it's simple, gets at marketing basics, and is completely relevant to the target customer: http://www.marketingsherpa.com/article.php?ident=30752&pop=no
If something like this doesn't work, well perhaps your own customers are not totally convinced. Then you may have a product or service problem. That's another issue.
Let me know if you have similar examples of what worked or doesn't. My DePaul students love to hear real stories.
Jackie
I've been talking all about this book to my friends and family so now most of them are reading the books and are hooked. (I think I created our own Edward Cullen fan club...but I regress). Perfect example of what customer enthusiasts can do to expand your business. And granted it's probably easier with a product so engaging (and passionate like the Cullen family of vampires...and don't even get me started on the Goo Goo Dolls). What about a business that might not be so engaging, especially in B2B. What about those enthusiasts who are not so open, or confident, to share? You may need to work harder to help these people pass the word. They need more incentive to think about your company.
It isn't enough to just ask to 'refer a friend'. I haven't found that to be successful for clients unless linked to an incentive. Perhaps you do have a program to incent customers to refer friends. If not, why not pass along a special incentive that they can send to their friends or co-workers. Don't forget the part about the incentive for the friend to make a purchase or set a meeting. You'll need offers on both sides to maximize results. For marketers, we know this stuff. But not many are actually doing it. Thus the fuss about word of mouth and viral marketing. Referral programs are something we can develop to assist the WOM and viral marketing efforts.
And a suggestion on the offer: Try not to use dollars off as an incentive for new business (for the 'referees' in this case). Dollars off might work with current customers who are committed to your product or company, but they rarely work for someone not convinced yet. Think of building trial and minimizing risk with that group.
Marketing Sherpa has a nice case about a successful referral program. I want to share because it's simple, gets at marketing basics, and is completely relevant to the target customer: http://www.marketingsherpa.com/article.php?ident=30752&pop=no
If something like this doesn't work, well perhaps your own customers are not totally convinced. Then you may have a product or service problem. That's another issue.
Let me know if you have similar examples of what worked or doesn't. My DePaul students love to hear real stories.
Jackie







You are absolutely right about this marketing phenomenon. Often times people discount how effective word of mouth is. The bottom line is that if you have a superior product, get it to your customers. Often times they will do the rest. Many popular restaurant thrive on this kind of marketing. After one restaurant review, BAM, they are busy every lunch and dinner every day of the week!
Larry
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You are absolutely right! I have seen it happen too many times. Just think about it; how many times have you told a friend you have to try this restaurant or drink this beer? Personally, I probably make a reccomendation to a friend every single day. That is why you must treat every single customer like a king/queen. If you make them happy they will be sure to tell their friends!
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