Marketing to Millennials: 5 Ways Ecommerce Can Absolutely Kill It
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What if you could double your customer base at low to no cost?
Referrals are one of the oldest, most trusted marketing strategies to acquire new customers. Otherwise known as referral marketing, this method involves empowering customers to share your products or services with their circles, often by word of mouth.
If you were to convince each of your customers to refer your business, you could potentially double your customer base—at low to no cost. With the viral nature of social media, loyal customers are as influential as they are invaluable.
80% of all B2C and B2B purchases involve some form of word-of-mouth recommendation during the purchase cycle. (Forbes)
While referrals are often spontaneous, the savviest companies know how to garner referrals to win word-of-mouth. Read on for 5 tangible strategies you can grasp today to gain referrals.
Before the Internet, consumers shared their opinions with neighbors, friends, the clerk at the store—really, anyone who’d listen. A survey by HelpScout found Americans tell an average of 9 people about good experiences with a business, and 16 about negative interactions. Nearly twice as many!
The virality of the Internet only strengthens this pastime, spreading reviews far and wide. As a result, the average consumer now has more reach, more influence than ever before.
55% of consumers share their purchases socially on Facebook, Twitter, Pinterest and other social sites. (AnnexCloud)
The fact that your customers can influence the opinions of friends and total strangers is a daunting reality. Use this to your advantage and give people something worth talking about.
Social media plays a huge role in referrals. Has your company staked its claim in the social media space?
Increase your qualified follower count—those most likely to buy from your business—and you increase your sphere of influence.
71% of consumers are more likely to make a purchase based on social media referrals. (AnnexCloud)
Gain a “like” and you gain exposure to that follower’s circles. Bonus points if you create content worthy to be shared, which boosts exposure—and connection to your brand.
Want to grow your social media presence but not sure where to start? Check out these resources on our blog.
Brand fatigue is real. If your customers aren’t engaging or singing your praises online, it could have less to do with you; more to do with the high volume of brand messages they get each day.
Cut through the noise and motivate referrals with incentives. Survey says incentives are one of the most effective ways to generate referrals. These gifts can range from recognition, to a simple “thank you”, to monetary or product-based rewards.
Incentives work because they create motivation, show appreciation, and earn engagement.
If the cost associated with incentives is a concern, remember: you can expect to see at least 16% more in profits from referred customers. (Extole)
Related: Find out why CLTV is so important to business and how you can harness it, here.
You’ve no doubt heard the Pareto principle, also known as the 80/20 rule. It states that 80% of your output comes from 20% of your input.
In similar fashion, savvy business owners find that a small slice of referrers—be it customers, websites, or another source—are responsible for a majority of their referrals.
Work smarter, not harder. Take to the data to discover where your leads are coming from, and focus on nurturing that group.
One of the best, most cost-effective ways to generate referrals? A referral program. This is essentially a “member’s club” granting higher-value rewards for referrals. As a result, the program builds an air of exclusivity that wins repeat purchase, loyalty, and word-of-mouth.
81% of consumers are more likely to engage with brands that have reward programs. (Extole)
Zinrelo, formerly known as ShopSocially, is one such service used to manage loyalty reward and referral programs. According to Zinrelo, loyalty rewards programs have been found to boost customer revenue 2.4 times and repeat purchases, 80%.
Browse our selection of referral apps in the Miva App Store that can help you maximize revenue per customer and new customer acquisition.
Referrals are one of the longest standing, most trustworthy ways to acquire customers. By implementing the strategies listed here, you have the opportunity to win new business—and strengthen current customer relationships along the way.
Cheryl Elizaga is a Brand Strategist and Copywriter with nearly a decade of experience catalyzing meaningful, measurable action for Fortune 100 companies and industry pioneers alike. A contributing author to the Miva Blog, Cheryl helps ecommerce companies own their brand and harness the tools and technology of the leading Miva platform to drive growth.
Miva offers a flexible and adaptable ecommerce platform that evolves with businesses and allows them to drive sales, maximize average order value, cut overhead costs, and increase revenue. Miva has been helping businesses realize their ecommerce potential for over 20 years and empowering retail, wholesale, and direct-to-consumer sellers across all industries to transform their business through ecommerce.