Loyalty & Referral Marketing suits all kinds of industries and professions and has done so for hundreds of years. This said, there is a huge difference in the implementation strategy employed by a professional firm and a restaurant.
The Webo objective is to accelerate growth for one type of client with one customised solution.
We coach strategic marketing with the aid of our tried and tested frameworks customised to suit specific needs. Read on to fully understand the benefits of Loyalty and Referral Marketing.
Loyalty and Referral Marketing White Paper
Set out below is an in-depth review of loyalty and referral marketing that covers how the Webo LPM package augments and enhances implementation through automation software. The impact of referral marketing integrated with social media sharing has the potential to generate a significant shift in digital marketing trends. You can do it the easy way with our software, or you can do it manually. The choice is yours. Read on for the facts and credible opinions on Loyalty and Referral marketing. This 10-minute read will give you insight into how digital marketing is driven by possibility, not historical trends.
What is Referral Marketing?
“Referral marketing is a structured and systematic process to maximize word-of-mouth potential,” according to Wikipedia. “Referral marketing does this by encouraging, informing, promoting and rewarding customers and contacts to think and talk as much as possible about their supplier, their company, product and service, and the value and benefit the supplier brings to them and people they know. Referral marketing takes word-of-mouth from the spontaneous situation to one where maximum referrals are generated.”
The Webo SaaS (Software as a Service) Package
The Webo Loyalty Programme Marketing (LPM) package includes a loyalty, referral and digital marketing toolset. It is hosted on the Webo servers in the USA with 3rd party encryption, 24/7 malware monitoring, cloud proxy firewalls and daily enterprise backups. Clients subscribe to a site-building software service and benefit from the above protection and support while enjoying dedicated internet access at their URL and at a Webo URL. It is like having a shop in a mall with passing traffic.
Introduction
We will first explore the benefits of referral marketing so that you can determine if Loyalty and Referral marketing is for you. Once done, we will explore the unique benefits that the Webo LPM (Loyalty & Referral Programme Marketing) software solution offers.
Before you can enjoy the many benefits of a referral program, you need delighted customers. Satisfied customers are key to loyalty and referral marketing; without this, your programme will not effectively establish brand loyalty, engagement and customer growth. It's simple, happy customers are loyal and are likely to make referrals, but unhappy customers do not.
Referral marketing is a user-centric strategy that enables satisfied customers to introduce the benefits of your products and services to their friends. The effect of referrals is that they will accelerate your growth and turnover and increase customer retention and loyalty. The focus of an SEM (Search Engine Marketing) strategy shifts from SEO and PPC to trusted recommendations from friends.
The power of Referral Marketing to grow a customer base is second to none. Ask around, and you will discover that structured referral marketing strategies are rare and that few have taken the easy way to grow their businesses by automating their referral programmes.
Suppliers process inputs for outputs by following processes (the what) and systems (the when). The process is a controllable sequence of production steps during the production or supply of goods or services. When supplied to a user, they will have an impact and influence an outcome that drives the user experience.
Consumer experiences are the intangible value the consumer enjoys and benefits from after consuming or utilizing your goods or services.
Technical specifications aside, the user experience is what potential customers value. The result of the purchase is what gives meaning and value, and sharing the joy that the value brought is what influences others to want to do the same. Shared user comments, reviews and testimonials are powerful social influencers in informing pre-purchase expectations, and these opinions shape buying behaviour.
We value the subjective opinions of friends, which is why they are an effective social influence on product or service expectations and hence on buying decisions.
“Word of mouth is the primary factor behind 20 per cent to 50 per cent of all purchasing decisions.”
An effective marketing strategy needs to address information Push, Pull, Engagement and Promotion. The Webo LPM referral and loyalty programme addresses these needs within a tried and tested framework. Successful marketing campaigns must focus on the foundations needed to build and drive a campaign.
The Webo PeP and the LPM
The LPM has a focus on digital marketing. The PeP (Performance enhancement Programme) focuses on enhancing business performance. The PeP has been tried and tested in various countries and has, time after time, produced what has been described as impossible turnarounds. The PeP is not a quick fix. You can read a published case study & reviews on an eBook available on Amazon. The LPM is a fast-track marketing framework focusing on referral and loyalty marketing to drive revenue growth. The PeP is a bonus to Webo SaaS subscribers.
Shared Opinions
In a nutshell, shared opinions drive sales. Your customers/clients will talk to their friends about cherished experiences, as it is human nature to do so.
A study from Texas Tech University confirms that: 83 per cent of users are likely to share a product or service after a good experience. Yet only 29 per cent actually do. That means an average of 45 per cent of users who would otherwise share do not share.
Marketing can be expensive and time-consuming. Referral marketing is anything but this. In fact, referrals are the cheapest and most effective form of marketing and shouldn't be ignored. In its simplest form, referral marketing doesn't cost a dime.
- Texas Tech Today
Satisfied customers have something to share but generally do not do so if it is not easy to do while enjoying the experience. Incentivising customers may help, but "quick and easy" sharing is essential.
The Webo Loyalty & Referral App allows you to share on your customers' phones. Earning an incentive plus the gratitude of a friend is only a couple of clicks away on a PC or on the phone that is in their pocket.
Statically, studies have found that between 70% and 86% will share when it is worthwhile and easy to do. Thus:
For every 100 customers,
70% will share with friends on, say,
Facebook where, on average, they have 338 friends.
In the first step, This referral will reach: 70% x 338 people x 100 customers = 23,660 referrals.
In the next step, the reach explodes but suffice to say that the local reach will be saturated.
Studies show that in seven steps of friends and connections sharing, everyone in the world on the internet will be reached.
Suffice it to say that with the Webo App making it easy, you will earn your brand positive engagement and leverage customer advocacy to accelerate growth effectively.
Formal, Measured Multi-Channel Marketing
With the Webo LPM system, your marketing strategy will boost consumer advocacy with incentives to drive revenue growth measurably. The Webo 4 Channel Marketing System with “ Channel Fusion” allows your brand to leverage multi-channel word-of-mouth advocacy. The best part is: crafting a four-channel referral program is not complex. You can utilise the Webo SaaS on a DIY or B4U basis. In both cases, there is a support service to get your customers to grow your business ASAP.
According to Wharton, referral customers have a 16 per cent higher lifetime value than non-referred customers.
Plus, they will love your brand because they will have a direct link to the App from the bookmark button on their phone screens. This direct link will establish and build a relationship via the App where they can add reviews, share comments with social networks, monitor #hashtag engagement, link and engage on your blog, find your specials, product lists and more. In addition, the App will build your audience via generic and social share promotions.
A recent Heinz report showed that companies with formalized referral programs experienced 86% more revenue growth in the last two years than the rest.
The above companies exemplify how sustainable and effective refer-a-friend programs drive brand awareness and create new sales opportunities for existing customers.
Many large international businesses have a marketing strategy based on Referral Marketing. But first: what is not a referral programme? A referral program is not a one-time interaction between a brand and a consumer. Nor is it marketers dangling a carrot in front of consumers, enticing them with “win big” promises. Neither is affiliate marketing, where 3rd-party sites do the work for your marketing team, and you pay them a bounty. Instead, referral programs are built upon genuinely enthusiastic, customer-get-customer interactions that reward all parties involved equally. There is a science to making referral marketing programs succeed.
In a product or hospitality-centric application, the Webo LPM offers three points-based loyalty levels, leveraging the enthusiasm of the happiest, highest-spending customers with the most points in Level 3. In a referral-centric application such as a professional application used by a Law Firm, the application can categorise clients into groups such as corporate, private and public sector niche categories. Why?
Because like follows like, and those that spend more and who spend more often are likely to be an identifiable group who may respond to different incentives. This customer segment is most inclined to refer customers who will be satisfied with your offering and spend money similarly. Referral incentives should be targeted to specific groups, and this is what makes them effective. The idea is to target customers to get target customers.
How can one engage customers, and what’s the most compelling incentive you can offer? There are a wide variety of possibilities, including the following as potential incentives to establish and build relationships:
Discount: Buy More (2 for 1) Coupons, Discount (50% off) Coupons, Cash-Backs, Free/Expedited Shipping
Educate: Workshops, Webinars, Mini-Courses, Video & Audio Presentations
Events: Social events, Workshops, Guest Speaker Presentations
Fun and Entertainment: Competitions, Lucky Draws, Giveaways, Free Gifts
Information: How To Guidelines, Newsletters, eBooks, Articles, Brochures, White Papers, Community WhatsGood Pages
Reviews: Video Feedback, Written Opinions, Audio Podcasts
Simplify Articles that summarise or which include Infographics or Graphs, Checklists, etc.
Surveys: Interactive Quizzes, Polls and Forms
Trends: Top 10 Lists, What's Good Apps, Surveys and the Results Thereof
You will need to draw on your understanding of your customers/clients. Only appealing offers drive shares, so select a valuable and compelling incentive specifically matched to your best customers. Often, the most compelling benefit will not be a financial discount. Recognition and VIP status, and service benefits are normally highly desirable. Double-sided rewards that deliver equal benefits to both sender and receiver have been found more effective than single-sided rewards. User altruism and the will to improve their friends’ lives are fundamental to a compelling incentive.
The Webo LPM framework has a foundation of a Multi-Layered Loyalty Programme. Three loyalty status tiers offer gated access to defined benefits. Level 1, Level 2 and Level 3 can be named, and status can be awarded based on points earned for purchases or other defined reasons such as event participation, etc. Points are awarded for a specified duration. The points system is simple and easily understood. The tiers would be used in a professional environment to segment clients into niche audiences.
Loyalty Programme Structure: Fans, Advocates, Advisors and Promoters?
The Webo LPM distinguishes Advocates, Advisors and Ambassadors.
Fans in a consumer environment: are those who enjoy L1, L2 or L3 status, which is earned based on purchases within a defined period.
Fans in a professional environment; are those in niches such as corporate clients, private individuals and public sector clients.
B2B, B2C and B2P (business to Public Sector) could be categories awarded with a lifetime duration.
Advocates: are those that share comments with friends on social networks.
Advisors: are those that write reviews on your App.
Ambassadors: are those that e-mail a Level 1, Level 2, or Level 3, Advocate or an Advisor incentive to a friend in return for the same incentive that was sent to the friend.
Reviews: add social credibility, and they give others something to share.
Referrals: may take the form of individual incentive sharing by e-mail or by sharing comments on social networks.
Ambassadors: are not a defined status but rather a category of customers who have taken the option to e-mail a benefit that may be active in any status level. Ambassadors are often referred to as Promoters.
Thus those that e-mail a Level 1, Level 2, Level 3, Advocate or an Advisor incentive to a friend (where this is on offer) in return for the same incentive are referred to as Ambassadors. Ambassador rewards accrue only upon the friend accepting the offer (see below).
Objectives
Aims, targets, objectives or goalposts may be set as a condition the receiving user must complete for the referring customer to achieve their reward. These might be a signup, account activation, paid signup, a purchase, or something similar. It’s the closed loop that brings ROI home for everyone. This must be an easily completed task, yet one meaningful to your brand’s growth strategy. E.g. Airbnb’s goalpost is the first booking made by the referred user. Fraud prevention is another key aspect in goalpost creation, and conditions must match the benefits' value. At Airbnb, the credit card used has not to have before been used for an Airbnb purchase. This would not be possible for most businesses that use offsite bank credit card processing as the firm does not maintain a database of credit card details. Two-way verified rewards are the norm where the sender has not already earned the reward, and the benefit is specifically for the sign-up of the receiver. Where the sender has already earned the reward, the receiver using, say, a coupon, is a bonus, and thus it needs to be verified before the sender is rewarded. Where the objective is to grow sales, the referral to an existing customer may be of little concern as the focus will be on the offer's percentage take-up rather than on account sign-ups.
Automation
Effective referral programs are driven by referral programme software. The Webo Loyalty & Referral App is underpinned by convenience as it is an App on a phone or a PC bookmark. In this regard, the marketplace is competitive. The Webo Loyalty & Referral App is one of a kind because it is further underpinned by an advanced 4 Channel Marketing system with channel fusion. Designing a user experience hinges upon optimizing what the end user sees and how they interact with the referral program. The Webo Loyalty & Referral App channels Push and Pull engagement, promoting information delivery. The four channels can cover all the marketing bases. The system is an advanced website and eCommerce/product showcase builder, a viral blog builder, a Link & List App Builder and a Loyalty & Referral Programme App Builder with Social Media integration and Comment Syncing. Seamlessly optimizing across channels is what Channel Fusion delivers.
Discovery
How likely are your users to find your referral program? The Webo Loyalty & Referral App is promoted to all customers who sign up for a private social media account where they can track and edit on-the-record comments and reviews and opt-in for email and SMS messaging. In users' online accounts, they can follow their loyalty benefit transaction history, select specific benefits for on-phone redemption, or print tickets, coupons or vouchers for presentation to suppliers.
Sharing
The Webo App offers a seamless sharing experience that is just a few taps away from the button bookmark on a user's phone screen or a tablet, laptop or PC.
Sign-up
The Webo signup/sign-in is a managed process from when a user selects a benefit option on the App that can list full or selected product ranges.
Promoting the Referral Programme
The tier-structured Webo App enables a strategic focus on first-time new customer sign-ups, comment sharing and best-customer filtering. Suppliers can offer lead magnets such as eBooks, video and photo libraries, useful information linked lists, topical blog discussions, and online customer engagement in webinars for up to 1,000 people who follow a meeting wall in an online meeting room after having received a link to an online meeting pack stacked with all the supporting documents. To elaborate, a business could invite an authority on a topic to host a webinar for clients. Level 3 customers would be able to download invitations to the webinar, and they would be able to invite a friend. For example, getting a valued eBook written by an expert as a benefit to Advisors will be significantly cheaper than an across-the-board discount. Many benefits are available because of the advanced content management capability of the Webo Platform. You could also offer an App that lists and links to 1,000 local restaurants, local emergency numbers, home and garden suppliers, etc.
Summary
Where does one start? Referral and loyalty marketing has a foundation of happy customers who are delighted with your goods and services. Where customer satisfaction and positive user experiences are not the status quo, start with the PeP guidelines to assist you achieve remarkable results.
Once you are delighting customers, you need to go fishing. Yes, you need to fish for referrals, and you will succeed, provided you use the right bait! You can do it the hard way, and you can do it the easy way with the Webo LPM SaaS Package. We suggest that you take the time to rethink your digital marketing strategy to take advantage of the possibilities that Loyalty and Referral Marketing has to offer.
