After this year's record breaking Black Friday and Cyber Monday, you may have just about finished dealing with all those returns from Take-back Tuesday and are probably now fully focused on the Christmas period and the upcoming January Sales.
In fact, we wouldn't be surprised if you are feeling a bit exhausted by now, as you will have been planning for this busy time since early September. But as you make plans for spending the festive season with your family, while nervously watching to see how your marketing ideas actually translated into sales, you might think it strange to be already thinking beyond the end of the Holiday Sales. However, smart brands and retailers are already considering how they will get value from all those new customers acquired from almost two months after Black Friday.
And one thing on your checklist should definitely be a referral marketing programme. Whether that is launching a new scheme from scratch or replacing your existing one with a best-in-class platform to really leverage the goodwill from all those fresh new customers. That is simply because, as we see from verticals as diverse as beauty, fashion, finance, grocery, home furnishing, travel and telecoms, referral marketing consistently delivers the best quality customers at the lowest CPA.
And at a time when you have acquired more customers than at any other time throughout the year, you should be thinking how those new customers can bring you more good customers. Here are four very good reasons why you should already be planning to start 2018 with referrals
Customers are more likely to refer when you have their attention, such as immediately after purchase or on receipt of the goods or even after a smooth and frictionless returns process. And because in peak period you will often make more sales that the other quarters combined, you are likely to be at the front of mind for a lot of happy customers. This is a great opportunity to tap into that positive goodwill and get your customers to spread the word about you to their friends.
Because Black Friday fired the starter pistol on almost two months of non-stop promotions, you will probably pick up a lot of bargain hunters. So now you need to work out how to extract value from them, and the best way to do that is by getting them to refer their less price sensitive friends. When you start getting two, three, four new customers for the price of one, suddenly your numbers start to look a lot better.
The Holiday Sales period is probably the most expensive time of year for customer acquisition, as everyone bids for the same clicks, impressions and other media. So it’s vital that your very expensively acquired new customers stick around long enough for you to make money. The good news is that customers who refer friends and colleagues tend to become significantly more loyal themselves – because the act of referring reminds them how much they love your brand and they lend you some of their trust with their friends by recommending your brand. All of which makes them less likely to switch to a competitor, And when the reward for a successful referral is loyalty points or store credit, guess what? They are more likely to purchase again.
Lastly, as your January Sales start to lose momentum in Q1, it would be crazy not to grab the opportunity to make your existing customers work for you and bring you new sales.
Let's talk Referral Marketing!
If you are looking for innovative ways to make 2018 a great year for your brand, then get in touch and we will be delighted to show you the how the latest generation of referral marketing software can your drive customer acquisition and reduce your CPAs.
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Image by Whampoaorg: Creative Commons