HOW TOP BRANDS PROMOTE THEIR REFER-A-FRIEND PROGRAMMES
Referral marketing works just like any other form of marketing: via a funnel. You put people in at the top. They go through several of stages of conversion as they share with their friends. Then, as those friends engage, successful referrals complete the process.
‘Tis the season to spend big money, and marketers and retailers are out in force. Starting in November and running well into January, the spending frenzy will continue. But there are some crucial trends to bear in mind as you make the most of the avid consumer this holiday season. A great deal of focus has been placed on customer journey and experience, moving beyond a previously singular focus on seasonal discounts and product launches. Now, there’s also been significant investment in online and in-store customer experiences, loyalty and referral programs, personalized messaging, and other previously under-utilized marketing tactics. Check out a breakdown of this holiday season’s top marketing trends. Full story
11 ways to build an effective referral marketing system
We all know referral marketing is savvy marketing. Recruiting new customers from satisfied, existing customers is just good business. However, building the most effective referral marketing system can be a challenge. So what are the key objectives to keep in mind when building or revamping your referral marketing system? Set expectations upfront; let customers know that you want their feedback or will ask for it in the future. Transparency is vital for building customer trust. Second, analyze before you implement. Put simply; make sure your customers are satisfied before rushing to them for reviews and referrals. Otherwise, no one’s happy. Next, create multiple referral paths for customers. No two customers are the same, so it’s always a smart idea to communicate with customers in a way that is simple and efficient for them. With a few small changes, your company could be well equipped to build a successful and sustainable referral marketing program. Want more detail? Click the link to read more.
The problems with 5-star rating systems and how to fix them
Does your business rely on a 5-star rating system for feedback? New research suggests you might want to rethink this approach. The truth is that 5-star systems are good at weeding out very low-quality businesses or products, but they make it hard to separate the good from the great. Why? Well, the 5-star system has built-in selection biases. Without incentives to rate businesses or products, most customers who leave feedback have either had a very good experience or a very bad one. Also, some businesses inflate their ratings system, meaning that 4.8-star average score might not be as exceptional as you think. The solution? Show customers an average rating for products or suppliers in that sector. Or, adjust user ratings based on differences in their reviewing behaviour. Follow the few easy tips laid out here to make your rating system more meaningful.