Human beings are wired in such a way that they will trust a person they know about particular information rather than trusting any other source of information. This wiring of humans brings in immense possibilities for a very peculiar form of marketing, Member gets Member marketing.
In this form of marketing, your present customers become your advocates and recommend your product your goods or service to their friends and families, in short, your prospective customers. For doing this great service, your present customers are rewarded in the form of reward points or discounts for repeat purchase and your prospective customers also get a discount.
How does this system work?
InviteReferrals has created a solution that can be customized as per your needs. The basic structure of the process is as under:
1: Sends a “friend_code” to your existing customers through previously identified channels (eg email, push notifications, SMS, etc).
The existing customer will pass on this code to prospective customers while recommending this product.
The new customer will use this code to redeem a discount on the app or the company’s website.
When the new customer enters this code then the existing customers will be rewarded with an instant discount coupon which will help him get a discount on a future purchase.
This method helps companies in two ways:
- It helps them acquire new customers.
- Increase loyalty among old customers
To make a member get member marketing plan to be successful, it should have some key success factors. The key success factors for a good member get member program are:
Specific: The procedure to be followed by the existing customer and the ‘friend’ should be clearly specified.
Realizable: The attainability of the prize should be achievable for the existing customers. Eg “Refer 4 friends and get 50% off on your next purchase”.
Relevant: The reward that the program offer to the existing customer should be relevant. If the customer loses interest in the incentive then he won’t refer it further. The program should be checked regularly to see whether it is coherent and optimized for the customer and the friend.
Time-Bound: To ensure fast response all the promotional offers should come prescribed with a time limit.
Goog Member Get Member Marketing Campaigns:
- Dropbox: This online storage/file transfer service launched a referral program that rewards customers with product-based perks instead of monetary ones. Dropbox offers an extra 500 MB of free storage space to the customer who makes the referral, and to the newly referred user. As a result, the company saw its membership skyrocket by about 60% in 2010.
Key Take away: Incentives aren’t limited to cash and gift cards. Product-based discounts, perks or upgrades can make your customers more invested in your brand and more engaged with your product. This will strengthen their loyalty—and likely result in them submitting more referrals.
- Uber: This ride-share app builds referrals into its product—assigning each customer a personalized referral code as soon as their account is activated. Every time a new account is created using a customer’s referral code, both parties get their next Uber trip free.
Key Take away: Offering dual-sided rewards allows your advocates to approach their contacts with direct value. They’ll feel better knowing that their connections are getting something more than just an annoying email—making them more likely to refer in the first place.
- Evernote: The note-taking software launched a referral program that awards points to customers every time they make a referral. These points can be redeemed for free access to the software’s premium features. Plus, every time a customer’s referred lead upgrades to Evernote Premium, the customer who submitted the referral receives additional points. The service now has over 100 million users, 13 million of which were referred by other users.
Key Take away: The referral process doesn’t have to end after your customer submits their friend’s contact info. Giving them rewards when the person they referred upgrades their product can serve as a reminder to refer again. It will also motivate them to encourage their peers to upgrade.
With these points in mind, you can be sure you’re pointing in the right direction to make a real success of your member get member marketing
Now, take a moment to share this content with your social networks, and simply get in touch with us, if you want some extra help from us to create an amazing system that really does do your marketing for you.