Reference marketing is a relative of recommendation
I recently attended Marketing Week Live. Before joining the paid for session on multi-channel marketing and mapping the customer journey, I sat in on a session on brand engagement and innovation, led by Andy Cockburn, CEO at MentionMe.
The first slide, entitled ‘Using word of mouth and trust marketing to build brand engagement’ intrigued me. I listened to Andy talk passionately about reference marketing and his business model. It was very interesting, and a lot of the concept and strategy he spoke of with regards to customer loyalty, rewards and recommendation just highlighted to me how important the relationship between a buyer and a business is.
I found it particularly interesting to see how they used email marketing to target loyal customers who they knew were spending money on their site, and offering discount to them for referring a friend. Not only would they get discount on their next purchase if the friend signs up but also the friend for joining! If you’re both making a saving on a product of interest to both, it seems like a good incentive.
The referral scheme then continues to the new buyer and allows them to recommend the brand to get further discount and the incentive cycle continues, as the brand builds its credibility, increases purchase orders and its customer base.
How do you ensure your service or product puts customers first? How do you differentiate loyal customers to new ones? How relevant is the content to building brand engagement?
The key learning I took away from the presentation was the focus on reference marketing, it reminded me of my recent blog ‘You have to earn business credibility’ and that reference marketing is a relative of recommendation.
A change is happening in marketing, are you keeping up?
by Tina Chohan
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