GH techniques

Referrals

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Dr. Tomislav Rozman, BICERO Ltd.for: enGaging project, www.engaging-project.eu

Referral is the king

(Sounds familiar ?)

Some companies don’t like marketing…They say: ’’ Our product / service markets itself by word-of-mouth‘’

Or: Marketing / advertisement is a sign your product is not good.

Do you know any examples from your local environment?

What is the best marketing technique which works every single time ?

A satisfied customer who refers you to another customer!

A customer == your best marketeer

If you run out of them … then read on.

Example referral programs

Example #1: Dropbox

1. Dropbox’s famous referral program gives you and your friends 500MB additional

free storage space, up to 16GB

Dropbox’s referral program results:• Permanently increased sign-ups by 60%• In Sept 2008 the service had 100,000 registered users• In Jan 2010 (15 mos.) the service had 4,000,000• 35% of daily sign-ups are via the referral program

Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

Example #2: Paypal

2. PayPal’s referral program literally gave users (and their friends) cash – something

payment platforms can get away with

Referrals helped PayPal achieve 7 to 10% daily growth, catapulting their user base to over 100 million members.

Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

Example #3: Airbnb

3. Airbnb’s referral program – the 2nd iteration was even more successful than the

1st!

“Airbnb created a referral program […] launched in a private beta to 2,161 existing members and brought in 2,107 new members, nearly achieving a viral growth factor of 1.” [Source]

Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

Example #4: Uber

4. Uber’s referral program lets you give your friends the gift of discounted first rides

Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

… and 42 more on:

http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Markete

rs

(yes, I’m referring :)

Referral management process

WOM management process

Manage customer recommendations:

5. Enjoy the growth!

4. IF not successful GOTO 1

ELSE GOTO 5

3. Measure the effect

2. Establish rewarding system for customer

recommendations

1. Gather customer

recommendations

systematically

Example of social sharing + reward

Source: http://www.referralcandy.com/blog/true-and-co-referral-program/

How does it work?

How does WOM work?

WOM

In which situations you are a promoter, passive or detractor?

WOM / referral hacks

Simple hack related to WOM

Simply ask about it!

Example: Course online

survey built with Google forms:

4 key locations to install referral widgets* to increase user participation

a) Homepage – Trigger an overlay on your homepage or link to your

stand-alone referral page

b) User Account Pages – Give logged in customers the ability to share from

their account page

c) Post Purchase Page – Make sure you auto-pop that widget and you’ll get

10x more sharing

d) Stand-alone Referral Page – Create a landing page (i.e.

yoursite.com/refer) and embed a widget on that page.

… blogs, emails, ANY WEB REAL ESTATE!

*referral widget = like/share/invite a friend/recommend button or link

Source: https://www.friendbuy.com/blog/slides-referral-marketing-crash-course

5 ways to promote your referral landing page to get results now:1. Send a dedicated blast to your email list that links to your stand- alone referral

page.

2. Post the link to your Facebook fans.

3. Post to Twitter followers.

4. Post to LinkedIn followers.

5. Include a banner in your email templates (order confirmation, newsletters, etc.)

that links to your referral landing page*.

When will people share & recommend ?

NPS (Net Promoter Score)

If your organization’s NPS is higher than those of your competitors, you will likely

outperform the market, and managing your organization to improve NPS will also

improve your business performance.

How likely is it that you would recommend [brand] to a friend or colleague?

Key question

How do you calculate NPS?

Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others,

fueling growth.

Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to

competitive offerings.

Detractors (score 0-6) are unhappy customers who can damage your brand and

impede growth through negative word-of-mouth.

Subtracting the percentage of Detractors from the percentage of Promoters

yields the Net Promoter Score, which can range from a low of -100 (if every

customer is a Detractor) to a high of 100 (if every customer is a Promoter).

The downside of NPS

● Some say that Net promoter score doesn’t have a high correlation with word of

mouth or growth rates???

Any software related to referrals?

http://www.referralcandy.com/

Sharing optimization

How do you optimize the sharing rate?

• A/B testing

• Example:

• Here are a few Calls to Action:

a) “Get 50% Off a XZY product!”

b) “Get Half Off a XZY product!”

c) “Get $10 for Free!”

Can you guess which Call to Action won?

More -> module ‘’A/B testing’’

How do you measure your referral program?

Key metrics for your referral program

Key metrics:

• Sharing Rate – Percentage of people who share when presented with a widget

• Referral Visits – Clicks on shared content

• Referral Conversion Rate – Percentage of referred visitors who convert

Typical: 7%, with optimization, 50% *

*Source: T. Mariotti, https://www.friendbuy.com/blog/slides-referral-marketing-crash-course/

Carrots

What kind of ‘carrots’ you can use?

• Store credit

• Cash back

• Coupons

• Loyalty points

• Gift cards

• Discounts

• Access to special features (SAAS

and web-based apps)

• Free month (subscriptions)

• Donation to charitable cause

• Special events (in-store or

brick & mortar)

• Premiums (physical items like

a tote bag)

• Extra entries for sweeps and

contests

Dropbox: additional space

Retail stores

Aren’t we full of it?

*Source: T. Mariotti, https://www.friendbuy.com/blog/slides-referral-marketing-crash-course/

Now put these things to action!

Assignment instructions

1. Review the examples of the existing referral programmes:

http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

2. Which referral program could be used for your company? Explain.

3. Prepare a draft design of your referral program:

What will you offer to reward the referees?

How will you gather WOM?

Where will you include it in your web page?

How would you measure it?

4. How would you include NPS (Net Promoter Score) in your CRM process ?

Thanks for your

attention!

Are you interested in this project (enGAGING)?

1. Visit: www.engaging-project.eu or FB: https://www.facebook.com/EnGagingProject or Twitter https://twitter.com/engagingproject

2. Subscribe to the newsletter on the project web page (now we have your contact and we’ll spam you. Just kidding.)

3. Occasionally receive project newsletters (pretty boring, right?)4. Wait for the invitation for self-assessment test (a little better, right?)5. Wait for the online course about Gamification and Growth hacking (awesome,

right?)6. Become gamifier and growth-hacker (mind blowing, right?)

yes? no

Continue with pointless browsing :)

About the author (Tomislav Rozman)

E-mail: tomislav.rozman@bicero.com

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