The document provides an overview of referral marketing and discusses why it is an effective marketing channel. It begins by defining referral marketing and explaining that it harnesses the power of word-of-mouth recommendations. It then explores the science behind human decision-making, highlighting several factors that make people susceptible to social influence, such as cognitive fluency, social proof from friends and experts, credibility and liking of the referrer, and perceptions of scarcity. The document argues that referral marketing is successful because it leverages these psychological principles by capitalizing on existing trust in personal relationships to influence purchase decisions.
5 real-world examples of referral landing pages. See how Dollar Shave Club, MeUndies, NatureBox and Prize Candle increase conversions for their customer referral programs. This presentation covers best practices for converting referred visitors.
6 Referral Marketing Best Practices To Turn Customers Into Word-Of-Mouth Mark...G3 Communications
Word-of-mouth (WOM) is becoming retailers’ most powerful marketing channel. In fact, 80% of all purchase cycles involve some form of WOM recommendation, according to Forrester Research. These recommendations can drive three to five times more conversions over any other marketing channel.
To harness the power of WOM, retailers’ customer acquisition strategies must include a referral marketing program. The resulting WOM recommendations can help retailers increase awareness, acquire new customers and boost overall sales.
During this webinar, you’ll learn:
How referral programs help drive customer acquisition;
Best practices to increase awareness and new sales via referral programs; and
Ways to measure program results and calculate “real” ROI.
Register for the webinar, titled: 6 Referral Marketing Best Practices To Turn Customers Into Word-Of-Mouth Marketers, and learn how you can turn one-time shoppers into life-long brand advocates.
12 terms you need to know before you launch a customer referral programReferral SaaSquatch
Customer Referral Program terminology can quickly becomes confusing, not to mention down right frustrating. This presentation was made to help clear up the 12 most important terms in customer referral programs and set a common language for us all to talk in.
We’re going to cover best practices that top brands use to drive referrals and customer acquisition:
The following best practice examples come from companies that actually sell something. !
People always ask: “How do I get more referrals?” ! That’s easy. ! Focus on two things that really move the needle. ! User participation & Optimization
Again, two things really ‘move the needle’ for referral program performance. User Participation Optimization
User Participation Location matters
Homepage & Navigation Best practices: ! • Site-wide • Highly visible (upper-le#)
Order Confirmation Page Best practices: ! • Pop-up overlay • Varied offers
User Account Page Best practices: ! • Embedded • On button click - if you have to • PURLs
Stand Alone Referral Page Promote / drive traffic from: ! • Homepage & Navigation • Dedicated email blasts • Trigger emails & newsletters • Social following • Customer service follow up • Email signature
Dedicated Email Blasts Best practices: ! • Single call to action • Clear offer • Schedule (monthly / quarterly)
Your ‘reach’ may be bigger than you think…
Optimization Increase sharing rates and referral conversion rates
What to measure Shares ! Widget Impressions ! = Sharing Rate Conversions ! Referral Visits ! = Referral Conversion Rate Referral Visits
Sharing Rate - optimize call to action Best practices: ! • Clear call to action • What’s in it for them • What their friends get (if double-sided) • Address book importing
Sharing Rate - optimize design + 42% sharing rate • Red, italic headline • Background image
A B C • Purple bracelets • Green bracelets • “Expires in 24 hours!” • Woman on beach • “Expires in 24 hours!” + 35% Gain
Doubled referral visits and referral sales
Welcome overlay • Friend incentive • Email capture • Reveal code
Session-based • Dynamic message
Dedicated landing page • No distractions
1 Offers for sharer & friend 2 Calls to action for sharer & friend 3 Shared content (copy & images) 4 Shared email subject line Elements for testing 5 Referred visitor experience
Calls to Action - quick tips Tip 1: Verb + What’s in it for me? Tip 2: “I want to ___________.” • Get $10 in store credit. • Get a free month. • Give $10, Get $10 • Share and earn $10
Referral Benchmarks How are you doing?
Sharing
Referral Visits
Referred Visitors
Cost Per Acquisition CPA
Revenue Lift
Examples of Campaign Metrics Example companies by size
Where to start optimizing (30 day snapshot - 3 companies) a Rockin’ b Work on sharing rate c Work on conversion rate
Party Foul ! The biggest mistake people make . . .
Don’t force a login or registration 90% drop off!
Recap Follow best practices and avoid common pitfalls.
5 real-world examples of referral landing pages. See how Dollar Shave Club, MeUndies, NatureBox and Prize Candle increase conversions for their customer referral programs. This presentation covers best practices for converting referred visitors.
6 Referral Marketing Best Practices To Turn Customers Into Word-Of-Mouth Mark...G3 Communications
Word-of-mouth (WOM) is becoming retailers’ most powerful marketing channel. In fact, 80% of all purchase cycles involve some form of WOM recommendation, according to Forrester Research. These recommendations can drive three to five times more conversions over any other marketing channel.
To harness the power of WOM, retailers’ customer acquisition strategies must include a referral marketing program. The resulting WOM recommendations can help retailers increase awareness, acquire new customers and boost overall sales.
During this webinar, you’ll learn:
How referral programs help drive customer acquisition;
Best practices to increase awareness and new sales via referral programs; and
Ways to measure program results and calculate “real” ROI.
Register for the webinar, titled: 6 Referral Marketing Best Practices To Turn Customers Into Word-Of-Mouth Marketers, and learn how you can turn one-time shoppers into life-long brand advocates.
12 terms you need to know before you launch a customer referral programReferral SaaSquatch
Customer Referral Program terminology can quickly becomes confusing, not to mention down right frustrating. This presentation was made to help clear up the 12 most important terms in customer referral programs and set a common language for us all to talk in.
We’re going to cover best practices that top brands use to drive referrals and customer acquisition:
The following best practice examples come from companies that actually sell something. !
People always ask: “How do I get more referrals?” ! That’s easy. ! Focus on two things that really move the needle. ! User participation & Optimization
Again, two things really ‘move the needle’ for referral program performance. User Participation Optimization
User Participation Location matters
Homepage & Navigation Best practices: ! • Site-wide • Highly visible (upper-le#)
Order Confirmation Page Best practices: ! • Pop-up overlay • Varied offers
User Account Page Best practices: ! • Embedded • On button click - if you have to • PURLs
Stand Alone Referral Page Promote / drive traffic from: ! • Homepage & Navigation • Dedicated email blasts • Trigger emails & newsletters • Social following • Customer service follow up • Email signature
Dedicated Email Blasts Best practices: ! • Single call to action • Clear offer • Schedule (monthly / quarterly)
Your ‘reach’ may be bigger than you think…
Optimization Increase sharing rates and referral conversion rates
What to measure Shares ! Widget Impressions ! = Sharing Rate Conversions ! Referral Visits ! = Referral Conversion Rate Referral Visits
Sharing Rate - optimize call to action Best practices: ! • Clear call to action • What’s in it for them • What their friends get (if double-sided) • Address book importing
Sharing Rate - optimize design + 42% sharing rate • Red, italic headline • Background image
A B C • Purple bracelets • Green bracelets • “Expires in 24 hours!” • Woman on beach • “Expires in 24 hours!” + 35% Gain
Doubled referral visits and referral sales
Welcome overlay • Friend incentive • Email capture • Reveal code
Session-based • Dynamic message
Dedicated landing page • No distractions
1 Offers for sharer & friend 2 Calls to action for sharer & friend 3 Shared content (copy & images) 4 Shared email subject line Elements for testing 5 Referred visitor experience
Calls to Action - quick tips Tip 1: Verb + What’s in it for me? Tip 2: “I want to ___________.” • Get $10 in store credit. • Get a free month. • Give $10, Get $10 • Share and earn $10
Referral Benchmarks How are you doing?
Sharing
Referral Visits
Referred Visitors
Cost Per Acquisition CPA
Revenue Lift
Examples of Campaign Metrics Example companies by size
Where to start optimizing (30 day snapshot - 3 companies) a Rockin’ b Work on sharing rate c Work on conversion rate
Party Foul ! The biggest mistake people make . . .
Don’t force a login or registration 90% drop off!
Recap Follow best practices and avoid common pitfalls.
Promote your small business using Facebook Ads. Get exposure outside your network, get more traffic on your website and engage with more of your prospects.
These slides were presented at the Semrush webinar "E-commerce Marketing: How to Attract, Convert and Retain Customers". Video replay is available at https://www.semrush.com/webinars/e-commerce-marketing-how-to-attract-convert-retain-customers/
Selling Content Marketing Software to the C-SuiteCompendium
Selling Content Marketing Software up to the C-Suite can be a challenge for a number of different reasons. Our latest 8 page guide aims to solve that problem by providing you with what each person in the C-Suite is worried about and specific examples of how to speak to each person.
Johnathan is the founder of KlientBoost, a no-nonsense, creative kick-ass PPC agency that hustles for results & ROI. He’s been named the 2015 “Conversion Marketer To Watch” by Unbounce’s readers.
1) Single Keyword Ad Groups 2) Ad Group Level Negatives 3) Multi Intent Keywords 4) The Five Ad Tests 5) Aggressive Ad Testing 6) AdWords is Your Carrot 7) Insane Importance of Design 8) Multi Step Landing Pages 9) Your Landing Page Offer 10) The Price Focus CTA
Single Keyword Ad Groups 1
Google’s advice…
That would mean…
But it should be… keyword 1 keyword 2
What happens to your CTR
Higher search-to-ad relevancy = higher CTR = higher quality scores = lower cpc = lower cost per conversion.
Your new ad group structure =
Ad Group Level Negatives 2
Killing off internal competition
What it means… Ad group = “web analytics” Ad group = “web analytics stripe” Ad group = “web analytics braintree” Ad group = “web analytics paypal”
What it means… Ad group = “web analytics” Ad group level negative keywords - stripe - braintree - paypal
Search terms should look like…
See what’s holding you back
Multi Intent Keywords 3
The Search Buying Cycle
Search Buying Cycle Awareness Consideration Action “broken transmission” “whats my car worth” “sell my car”
The Five Ad Tests 4
Proximity
Source: ThinkWithGoogle.com
Proximity Source: Hanapin Source: Engine Ready
30% increase in conversions
Countdowns 32% CTR boost & 3% conv/rate improvement
Specificity How to Get 6,312 Subscribers to Your Business Blog in One Day How to Get Over 6,000 Subscribers to Your Business Blog in One Day How to Get a Torrent of Subscribers to Your Business Blog in One Day
Specificity 88% CTR boost & 23% conv/rate improvement
Timeliness 217% CTR boost & 23% conv/rate improvement
Aggressive Ad Testing 5
Get Aggressive!
Isolate and label Headline Display URL Description 1 Description 2
Let time pass, then filter
GetDataDriven.com/ab-significance-test
6 AdWords is Just Your Carrot
“Cats are your customers, AdWords is your laser pointer”
7 Insane Importance of Design
How fast do people judge you?
Visual & Aesthetic Judgement Research at Google International Journal of Human-Computer Studies, vol. 70(11) (2012), pp. 794-811 |——————————————| 1 full second 50 ms = 0.05 second
Insane Important of Design 6
8 Multi Step Landing Pages
Single step landing pages are threatening
9 Your Landing Page Offer
Conversion Rate Optimization 101 “What makes a good value proposition? An offer that’s differentiated from your competitors.” — Peep Laja, CRO Expert at ConversionXL
A lot more valuable than your competitors Make your offer
10 The Price Focus CTA
Struggling with CTA ideas? Get Pricing & More Info
32 New Hacks To Get More Phone Leads With AdWords & CRO kboo.st/kiss-phone (60 pages deep!)
The Price Focus CTA landingpages@klientboost.com
Little Known Facebook Tips to Maximize Reach & EffectivenessAffiliate Summit
This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: Not every Facebook change gets mass attention & tutorials from social marketing blogs. In fact, many of these tips are under the radar of the FB “gurus.” You’ll leave with fresh, actionable ideas.
100 Stats, Charts & Graphs to gain 'Buy-In' for Inbound/Content Marketing by ...Gus Wilson
HubSpot's newest collection of 100 Awesome Marketing Stats, Charts & Graphs, based on original research and data from a variety of sources, including analysis of our 4,500 customers, surveys with hundreds of small and medium-sized businesses, and dozens of top-notch publications like MarketingSherpa, eMarketer, Pew Research, McKinsey, and more.
This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: Dennis Yu has spent over $100MM on Facebook since 2007. He’ll log-in live to 3 Facebook ad accounts and show exactly how to build and manage conversion conversions. 6 phase process. Will share guide.
This was my keynote presentation at The Inbounder in Valencia, Spain. I cover why we should invest in brand and present a plethora of frameworks and models to help us do this efficiently within our organizations. You'll learn how to build brand, how to measure brand marketing, and how to position it as a revenue driver at your company.
How to Create a Targeted Facebook Ad Audience Using Power EditorWishpond
Is your business struggling with Facebook advertising? Are you disappointed with your cost per action metric and at a loss as to what to do?
This article will take a look at eight targeting best practice strategies within Facebook Power Editor and how to test your advertisements to ensure you’re getting the most for your money.
How to Kick Butt with Your Email OutreachRand Fishkin
Rand's presentation from Searchlove on how to get (almost) everything you've ever wanted with just an email. If you're trying to do email outreach to improve your content marketing, social media efforts, link building, public relations opportunities, networking, product feedback, and more, these slides are for you!
Content marketing is a great way for businesses to reach customers — without spending a fortune.
This deck will show you how you can build content into your marketing strategy so you can grow your revenue by fueling repeat business (loyal customers) and driving new sales (new customers).
Included in the presentation:
-- Growth strategies and tricks of the trade
-- Analytics and using them to measure your efforts
-- Core components of an effective content marketing strategy
Don't Boost: Making The Most Out Of Facebook Ads Sculpt
In a time of ever-changing social media obstacles, it's inevitable you'll be tempted to dip your toes into the waters of paid social media advertising. But is it worth it? Can you afford it? More importantly, can you afford not to do it?
On October 8th, 2014, Josh Krakauer of Sculpt helped answer the question that has existed longer than Facebook's "Boost" button: "How do I make the most out of
social ads without throwing money away?"
Learn more about Sculpt: http://wearesculpt.com/
Landing Page Optimization: 6 Years of Testing Distilled Into 5 Critical LessonsTaboola
On Wednesday, October 14th, Michael Aagaard (Sr. Conversion Optimizer, Unbounce) and Inbar Yagur (Sr. Content Strategist, Taboola) led a webinar discussion on landing page optimization. Topics included:psychological principles that help you design effective pages, how to conduct solid, data-driven user research, and more.
Does Seasonal Messaging Really Work? How one company's wrong assumptions led ...MarketingExperiments
As marketers, it is vital that our campaigns remain relevant to customers throughout the year. Seasonal campaigns tailored to specific holidays or events might be one way to ensure that our messaging remains in constant alignment with the motivations of our prospects.
How can we be sure that our seasonal campaigns are truly bolstering the appeal of our product and enhancing our core value proposition? Despite the opportunities that season-specific campaigns present, how can we be sure these changes will not negatively affect the clarity of our messaging?
In this 35-minute Web clinic, our research team shared strategies for finding the balance between seasonality and clarity, including a test that resulted in a 25% difference in clickthrough.
7 Tactics to Boost Your Digital Marketing Conversion RatesAnne Marie Dono
Increasing digital conversions rates is the top priority for any marketer this year, according to a recent ExactTarget survey. In this webinar we introduced 7 tactics you can use immediately to increase sales, leads, or the metric that you define as a conversion via your website or mobile apps.
This was the first time we introduced the concept of Growth Rate Optimization (GRO), a term I coined to describe a more holistic approach to optimization that is laser-focused on growing revenue by finding the perfect balance between user needs and business goals. Under this umbrella concept, we cover 7 tactics or concepts that help you optimize across various digital marketing channels from media buying to websites and mobile apps.
Hopefully you'll leave with some ideas on how to jumpstart or kick-start your optimization program. If not, email me!
Stay tuned for more webinars regarding Growth Rate Optimization.
20 Conversion Rate Optimization Experts Share Their Top Tip for eCommerce Rejoiner
The team at Rejoiner.com asked 20 of the world's top conversion rate optimization experts to share their top tip for making your eCommerce website convert. The responses were amazing and we assembled them in this SlideShare. Advice includes topics related to A/B testing, usability, metrics, cart abandonment, design philosophy, customer experience & more.
Lead nurturing has become an integral part of a successful marketing strategy—specifically when building relationships with potential buyers across multiple channels, even if they are not currently looking to purchase a product or service. Today’s potential buyers don’t become customers overnight—they require marketing over time as they self-educate and build trust with a company. Lead nurturing helps marketers communicate consistently with buyers cross-channel and throughout the sales cycle—addressing the gap in time between when a lead first interacts with you and when she is ready to purchase.
The Definitive Guide to Lead Nurturing covers everything you need to know to get started using lead nurturing to drive revenue growth, including how to:
Create a lead nurture strategy
Nurture leads across channels
Segment a lead database
Choose appropriate content for each lead nurture track and audience
Get the most value from lead nurturing with testing and optimization
Measure and explain lead nurturing’s return on investment
Promote your small business using Facebook Ads. Get exposure outside your network, get more traffic on your website and engage with more of your prospects.
These slides were presented at the Semrush webinar "E-commerce Marketing: How to Attract, Convert and Retain Customers". Video replay is available at https://www.semrush.com/webinars/e-commerce-marketing-how-to-attract-convert-retain-customers/
Selling Content Marketing Software to the C-SuiteCompendium
Selling Content Marketing Software up to the C-Suite can be a challenge for a number of different reasons. Our latest 8 page guide aims to solve that problem by providing you with what each person in the C-Suite is worried about and specific examples of how to speak to each person.
Johnathan is the founder of KlientBoost, a no-nonsense, creative kick-ass PPC agency that hustles for results & ROI. He’s been named the 2015 “Conversion Marketer To Watch” by Unbounce’s readers.
1) Single Keyword Ad Groups 2) Ad Group Level Negatives 3) Multi Intent Keywords 4) The Five Ad Tests 5) Aggressive Ad Testing 6) AdWords is Your Carrot 7) Insane Importance of Design 8) Multi Step Landing Pages 9) Your Landing Page Offer 10) The Price Focus CTA
Single Keyword Ad Groups 1
Google’s advice…
That would mean…
But it should be… keyword 1 keyword 2
What happens to your CTR
Higher search-to-ad relevancy = higher CTR = higher quality scores = lower cpc = lower cost per conversion.
Your new ad group structure =
Ad Group Level Negatives 2
Killing off internal competition
What it means… Ad group = “web analytics” Ad group = “web analytics stripe” Ad group = “web analytics braintree” Ad group = “web analytics paypal”
What it means… Ad group = “web analytics” Ad group level negative keywords - stripe - braintree - paypal
Search terms should look like…
See what’s holding you back
Multi Intent Keywords 3
The Search Buying Cycle
Search Buying Cycle Awareness Consideration Action “broken transmission” “whats my car worth” “sell my car”
The Five Ad Tests 4
Proximity
Source: ThinkWithGoogle.com
Proximity Source: Hanapin Source: Engine Ready
30% increase in conversions
Countdowns 32% CTR boost & 3% conv/rate improvement
Specificity How to Get 6,312 Subscribers to Your Business Blog in One Day How to Get Over 6,000 Subscribers to Your Business Blog in One Day How to Get a Torrent of Subscribers to Your Business Blog in One Day
Specificity 88% CTR boost & 23% conv/rate improvement
Timeliness 217% CTR boost & 23% conv/rate improvement
Aggressive Ad Testing 5
Get Aggressive!
Isolate and label Headline Display URL Description 1 Description 2
Let time pass, then filter
GetDataDriven.com/ab-significance-test
6 AdWords is Just Your Carrot
“Cats are your customers, AdWords is your laser pointer”
7 Insane Importance of Design
How fast do people judge you?
Visual & Aesthetic Judgement Research at Google International Journal of Human-Computer Studies, vol. 70(11) (2012), pp. 794-811 |——————————————| 1 full second 50 ms = 0.05 second
Insane Important of Design 6
8 Multi Step Landing Pages
Single step landing pages are threatening
9 Your Landing Page Offer
Conversion Rate Optimization 101 “What makes a good value proposition? An offer that’s differentiated from your competitors.” — Peep Laja, CRO Expert at ConversionXL
A lot more valuable than your competitors Make your offer
10 The Price Focus CTA
Struggling with CTA ideas? Get Pricing & More Info
32 New Hacks To Get More Phone Leads With AdWords & CRO kboo.st/kiss-phone (60 pages deep!)
The Price Focus CTA landingpages@klientboost.com
Little Known Facebook Tips to Maximize Reach & EffectivenessAffiliate Summit
This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: Not every Facebook change gets mass attention & tutorials from social marketing blogs. In fact, many of these tips are under the radar of the FB “gurus.” You’ll leave with fresh, actionable ideas.
100 Stats, Charts & Graphs to gain 'Buy-In' for Inbound/Content Marketing by ...Gus Wilson
HubSpot's newest collection of 100 Awesome Marketing Stats, Charts & Graphs, based on original research and data from a variety of sources, including analysis of our 4,500 customers, surveys with hundreds of small and medium-sized businesses, and dozens of top-notch publications like MarketingSherpa, eMarketer, Pew Research, McKinsey, and more.
This presentation is from Affiliate Summit East 2016 (July 31-August 2, 2016 in New York City, NY). Session description: Dennis Yu has spent over $100MM on Facebook since 2007. He’ll log-in live to 3 Facebook ad accounts and show exactly how to build and manage conversion conversions. 6 phase process. Will share guide.
This was my keynote presentation at The Inbounder in Valencia, Spain. I cover why we should invest in brand and present a plethora of frameworks and models to help us do this efficiently within our organizations. You'll learn how to build brand, how to measure brand marketing, and how to position it as a revenue driver at your company.
How to Create a Targeted Facebook Ad Audience Using Power EditorWishpond
Is your business struggling with Facebook advertising? Are you disappointed with your cost per action metric and at a loss as to what to do?
This article will take a look at eight targeting best practice strategies within Facebook Power Editor and how to test your advertisements to ensure you’re getting the most for your money.
How to Kick Butt with Your Email OutreachRand Fishkin
Rand's presentation from Searchlove on how to get (almost) everything you've ever wanted with just an email. If you're trying to do email outreach to improve your content marketing, social media efforts, link building, public relations opportunities, networking, product feedback, and more, these slides are for you!
Content marketing is a great way for businesses to reach customers — without spending a fortune.
This deck will show you how you can build content into your marketing strategy so you can grow your revenue by fueling repeat business (loyal customers) and driving new sales (new customers).
Included in the presentation:
-- Growth strategies and tricks of the trade
-- Analytics and using them to measure your efforts
-- Core components of an effective content marketing strategy
Don't Boost: Making The Most Out Of Facebook Ads Sculpt
In a time of ever-changing social media obstacles, it's inevitable you'll be tempted to dip your toes into the waters of paid social media advertising. But is it worth it? Can you afford it? More importantly, can you afford not to do it?
On October 8th, 2014, Josh Krakauer of Sculpt helped answer the question that has existed longer than Facebook's "Boost" button: "How do I make the most out of
social ads without throwing money away?"
Learn more about Sculpt: http://wearesculpt.com/
Landing Page Optimization: 6 Years of Testing Distilled Into 5 Critical LessonsTaboola
On Wednesday, October 14th, Michael Aagaard (Sr. Conversion Optimizer, Unbounce) and Inbar Yagur (Sr. Content Strategist, Taboola) led a webinar discussion on landing page optimization. Topics included:psychological principles that help you design effective pages, how to conduct solid, data-driven user research, and more.
Does Seasonal Messaging Really Work? How one company's wrong assumptions led ...MarketingExperiments
As marketers, it is vital that our campaigns remain relevant to customers throughout the year. Seasonal campaigns tailored to specific holidays or events might be one way to ensure that our messaging remains in constant alignment with the motivations of our prospects.
How can we be sure that our seasonal campaigns are truly bolstering the appeal of our product and enhancing our core value proposition? Despite the opportunities that season-specific campaigns present, how can we be sure these changes will not negatively affect the clarity of our messaging?
In this 35-minute Web clinic, our research team shared strategies for finding the balance between seasonality and clarity, including a test that resulted in a 25% difference in clickthrough.
7 Tactics to Boost Your Digital Marketing Conversion RatesAnne Marie Dono
Increasing digital conversions rates is the top priority for any marketer this year, according to a recent ExactTarget survey. In this webinar we introduced 7 tactics you can use immediately to increase sales, leads, or the metric that you define as a conversion via your website or mobile apps.
This was the first time we introduced the concept of Growth Rate Optimization (GRO), a term I coined to describe a more holistic approach to optimization that is laser-focused on growing revenue by finding the perfect balance between user needs and business goals. Under this umbrella concept, we cover 7 tactics or concepts that help you optimize across various digital marketing channels from media buying to websites and mobile apps.
Hopefully you'll leave with some ideas on how to jumpstart or kick-start your optimization program. If not, email me!
Stay tuned for more webinars regarding Growth Rate Optimization.
20 Conversion Rate Optimization Experts Share Their Top Tip for eCommerce Rejoiner
The team at Rejoiner.com asked 20 of the world's top conversion rate optimization experts to share their top tip for making your eCommerce website convert. The responses were amazing and we assembled them in this SlideShare. Advice includes topics related to A/B testing, usability, metrics, cart abandonment, design philosophy, customer experience & more.
Lead nurturing has become an integral part of a successful marketing strategy—specifically when building relationships with potential buyers across multiple channels, even if they are not currently looking to purchase a product or service. Today’s potential buyers don’t become customers overnight—they require marketing over time as they self-educate and build trust with a company. Lead nurturing helps marketers communicate consistently with buyers cross-channel and throughout the sales cycle—addressing the gap in time between when a lead first interacts with you and when she is ready to purchase.
The Definitive Guide to Lead Nurturing covers everything you need to know to get started using lead nurturing to drive revenue growth, including how to:
Create a lead nurture strategy
Nurture leads across channels
Segment a lead database
Choose appropriate content for each lead nurture track and audience
Get the most value from lead nurturing with testing and optimization
Measure and explain lead nurturing’s return on investment
Buyers can now discover nearly everything about companies, products and
services from websites and other Web sources, including what customers are
saying on social media.
When target positioning for marketing, know your clients well enough to be your best friend. Make a clear definition of the type of person the business would appeal to. What are the likes, dislikes, experiences, and values of the prospect? What kind of energy is needed to appeal to them? Only then could you start targeting your search campaign.
7 ESSENTIAL TIPS FOR EFFECTIVE LEAD GENERATION.pptxA2digital
: In simple words, Lead Generation/Lead generation marketing is the process of getting people interested in your business and gradually converting them through your pipeline into paying customers. Some people see lead generation as a big email blaster and an intrusive salesperson. However, today these techniques are no longer successful.
IAB Canada Roadshow 2015: How Can Online Display Ads Directly Drive Purchase ...IAB Canada
Join Mediative on the 2015 IAB Canada Roadshow as the discuss online display ads and purchasing behaviour.
For More Information : Mediative.com/iab-roadshow
3. 3
Purchasing behavior has been socially
influenced since the beginning of time.
Long before social networks like Facebook
and Twitter kept you in the virtual loop,
your physical network was having an
impact on what you bought and where you
bought it from. In fact, referral is the most
powerful force in driving new business —
and in helping customers decide what to
purchase.
How can your business harness the power
of referral, capture more customers, and
build a scalable, sophisticated marketing
program to drive more sales?
1 Sullivan, L. (2010, Feb. 22). Social Media Not Preferred Recommendation
Resource. In MediaPost. Retrieved from http://www.mediapost.com/-
publications/article/122854/
2 Jancht, J. (2011, Aug. 29). The Art of Referral Conversion. In Duct Tape
Marketing. Retrieved from http://www.ducttapemarket-
ing.com/blog/2011/08/29/the-art-of-referral-conversion/
This guide will help you do just
that. We will help you answer key
questions like:
• What is referral marketing?
• Why is referral marketing so effective?
(Hint: It’s science!)
• How do I determine how much to pay
out as a referral bonus?
• What are the key elements of a success-
ful referral marketing strategy, and how
do I get started?
Even if you’re already receiving a steady
stream of referrals, improving your referral
conversion rate by 5 or 10% could dramati-
cally impact your bottom line.2
So, let’s get started.
59 % of people consult friends and family for
personal advice in making purchase decisions.1
Why should I read this Referral Marketing
Handbook?
The Handbook for Referral Marketing: From Science to Purchase
Tip: 5(ish) Questions to guide
your successful Referral
Marketing strategy
1 How does your business currently
interact with customers and prospects?
2 What are your specific objectives for
your referral campaign? What does
success look like?
3 Who is your ideal customer?
4 What is your current customer
acquisition strategy? What are your
costs, and how successful are your
methods?
5 What questions do you still need to
answer before you get started?
5. 5
Referral Marketing is the method of
promoting products or services to new
customers, primarily through
word-of-mouth3. Essentially, Referral
Marketing takes a formal, strategic approach
to capturing and enabling referrals through
Refer-a-Friend campaigns, partnerships, or
other means. Profitably acquiring customers
is the key to any company’s success. Referral
Marketing allows companies to get new
customers cheaply by giving advertising
dollars directly to customers, rather than to
third party advertising platforms. Customer
acquisition is the number one priority and
number one challenge for businesses today.
Referral Marketing helps companies target
potential customers who are not yet aware
of the brand, or who may need an extra
nudge from a friend in order to make that
first purchase.
Referral Marketing - What is it?
Referral has long been the most powerful force in driving new
business, and is the most trusted form of advertising. According to
Nielsen, 84% of people trust product and brand recommendations
from people they know4. Think about the last thing you bought
online. How did you hear about it? What factors influenced your
decision to buy? How did you feel after you made your purchase? If
you heard about the product through a friend, chances are you felt
pretty good about your purchase.
Compared to other marketing channels, referrals have the highest
margin and best conversion rate from prospect to purchase. They
also have a higher lifetime value and better retention. In fact, a
referred customer is expected to have at least a 16% higher lifetime
value than customers acquired through other means5. Why?
The Best Performing Marketing Channel
3 http://en.wikipedia.org/w/index.php?title=Referral_marketing&oldid=657348363
4 Unknown (2013, Sept. 13). Under the Influence: Consumer trust in advertising. In Nielsen. Retrieved from http://ww-
w.nielsen.com/us/en/insights/news/2013/under-the-influence-consumer-trust-in-advertising.html
5 Unknown (2010, July 21). Turning Social Capital into Economic Capital: Straight Talk About Referral Marketing. In
Wharton Business Digital Press. Retrieved from http://whr.tn/1BSxsbp
The Handbook for Referral Marketing: From Science to Purchase
6. 6
A well-executed referral marketing
program can lead to higher conver-
sion rates, shortened sales cycles,
and improved overall customer
retention.6
84% of people trust
product and brand
recommendations
from people they
know.8
6 Vas, E. (2015, Apr. 1). The Basic Science of Referral Programs: The External Client Referral Perspective. In
Business 2 Community. Retrieved from http://business2community.com/b2b-marketing/basic-science-re-
ferral-programs-extrnal-client-referral-perspective-01194895
7 Matt Belitsky (2015, Jun. 02). Third-Party Research Reveals B2C Referral Marketing is Top Performing.
Data sourced by Audience Audit, Inc. for Infusionsoft. Retrieved from http://blog.talkable.com/refer-
ral-marketing/third-party-research-reveals-b2c-referral-marketing-is-top-performing/
8 Unknown (2013, Sept. 13). Under the Influence: Consumer trust in advertising. In Nielsen. Retrieved from
http://www.nielsen.com/us/en/insights/news/2013/under-the-inf-
luence-consumer-trust-in-advertising.html
The Handbook for Referral Marketing: From Science to Purchase
MOST EFFECTIVE SALES & MARKETING STRATEGIES
REFERRAL 62%
EMAIL 34%
SOCIAL MEDIA 23%
SEO/SEM 14%
BLOG/WEBINARS 13%
DIRECT MAIL/FLYERS 12%
12%EVENTS
PRINT ADS 8%
8%
2%
PPC
TV/RADIO ADS
0% 20% 40% 60% 80%
Analysis from a recent study,
surveying over 600 B2C
companies, revealed that 62% of
respondents cite referral as being
one of the most effective strate-
gies due to its ability to generate
tangible results, compared to other
marketing channels.7
8. 8
To understand what makes referral marketing so powerful and
successful, it is important to understand the science behind
human decision-making. The human brain is sometimes irrational
and at first can be hard to understand and predict. We rely on a
large number of decision-making shortcuts — or, as scientists call
them, “decision heuristics” — to make our lives easier, and
improve the speed at which we make decisions. Without these
shortcuts, deciding simple things would become a complex ordeal
of analysis, stalling our productivity and halting our progress.
Referral marketing is the strongest performing marketing channel
because it capitalizes on fundamental principles in neuroscience
and psychology. Let’s take a deeper look at some of the
research-based rules of the psychology of decision-making.
For marketers, this means that the easier
your offer is to understand, the more likely
people are to buy it9. The concept of
cognitive fluency explains brand loyalty
and why you order the same thing from
the menu each time you visit a particular
restaurant: it’s easy. You’ve tried it, it
worked, and you don’t want to spend time
researching alternatives or risk making a
bad purchase. With this concept in mind,
you can easily understand the impact of
giving your customer a positive first
buying experience. It then becomes that
much easier to get repeat purchases and
referrals.
Offers that are suggested by friends are
more accessible, relatable, and thus easier
for us to cognitively process and
understand than an offer made by a brand
directly. We can easily see our friend’s
purchasing behavior as an example of how
a product or service might benefit us.
Cognitive Fluency
9 Processing fluency. (2014, August 22). In Wikipedia, The Free Encyclopedia. Retrieved from http://en.wikipe-
dia.org/w/index.php?title=Processing_fluency&oldid=622357374
DIRECT COMPLEX
VS
The Handbook for Referral Marketing: From Science to Purchase
9. 9
The Handbook for Referral Marketing: From Science to Purchase
UNDERSTANDING MARKETING LINGO
REFERRAL MARKETING VS. AFFILIATE MARKETING
Both channels drive new
customers to your business.
But what’s the difference?
DEFINITION
PARTIES INVOLVED
RELATIONSHIP
PRIMARY MOTIVATION
FINANCIAL MOTIVATION
WHEN TO USE
Advocates share brand
experience with friends
Influencers share
brand experiences with
strangers/fans
Personal, known, and
trusted advocate refers
a friend
‘Affiliate’ recommends
to social following,
readership, etc.
1 : 1 1 : many
Strong, personal
relationship between
advocate & ‘friend’
Financial
Two-way; equal
reward or skewed to
the ‘friend’
Affiliate receives
commision or other
financial compensation
High-quality,
cost-effective lead
generation
Need access to
large audience
Aa
$
SOCIAL
PROOF
WHO INFLUENCES
WHAT WE BUY?
USERS
Average person who
uses & recommends a
perticular product.
Ex. First-hand testimonials
CELEBRITIES
Endorsements by
celebrities influence
what we believe about
a product.
Ex. Nike Air Jordans
EXPERTS
Domain expert users,
loves & advocates for
a product.
Ex. Bloggers
$
10. 10
For you left brain marketers out there, this
concept is easily justified with basic math:
the more people who do something, the
more likely it is to be the correct choice.
Ever walked by a bar or a restaurant,
noticed a long line of people waiting, and
decided to join the line? That the place must
be great because of all of the people wait-
ing? When you decide to use a product that
is so widely adopted or liked that you don’t
even need to question its quality, that is
wisdom of crowds social proof. This often
occurs once a certain threshold of familiari-
ty is achieved.
Learning from friends through the social
web is often a key determinant in a compa-
ny’s virality and growth. When our peers or
friends like or approve products or services,
this influences our decision-making process.
Since we both like our friends, and consider
them to be similar to us, we often find it
easy to quickly adopt a product recom-
mended by a friend. What our friends
approve of impacts our feeling about prod-
ucts and services.
Under the Influence: How Other People
Impact Our Decisions
It’s not just generating referrals. Studies have shown that friends referred by friends make
better customers. They have a higher lifetime value than customers from all other channels,
convert better, and shop faster11.
Macro Referrals:
‘The Wisdom of Crowds’
Micro Referrals:
‘The Wisdom of Your Friends’ There’s a reason for all of those Farmville
requests on Facebook: Friends inviting
friends to play games through Facebook
and other social networks helped mobile
game giant, Zynga grow from 3 million to
41 million average daily users in just one
year, from 2008 to 200911
.
The Handbook for Referral Marketing: From Science to Purchase
10 Lee, A. (2011, Nov. 27). Social Proof is the New Marketing. In
TechCrunch. Retrieved from http://techcrunch.com/2011/11/27/so-
cial-proof-why-people-like-to-follow-the-crowd/
11 Wharton. (2010, Jul. 21). Straight Talk About Word-of-Mouth
Marketing. In Forbes. Retrieved from http://www.-
forbes.com/2010/07/21/viral-marketing-referral-pro-
gram-entrepreneurs-sales-marketing-wharton.html
11. 11
It goes without saying that a person’s credibility is a great determi-
nant of their influence on your opinions or behaviors. That credibility
is determined by the person’s expertise, trustworthiness, and similari-
ty to you. Does the person have the relevant knowledge, education or
experiences to make an accurate judgment? Do you trust their opin-
ions? How similar is that person to you? Are you of the same or
aspired social class? The more ‘yes’ responses we can answer, the
more likely we are to be influenced by that person. It is easy to see
why our friends often have so much influence over opinions and
purchases, since we often share similar traits with our friends.
We don’t just make a judgment on the validity of a person’s state-
ments on credibility alone. Here is a relatively simple rule: People “say
yes” to those they know and like. Refer-a-friend campaigns benefit
from this principle, because referred friends are more likely to “say
yes” and accept a friend’s offer or recommendation to purchase. The
quality of our connections and our sense of “liking” directly influences
our conversion rate in purchasing decisions.
Another huge influence on our beliefs about the value of a product or
service come down to scarcity. Something that is rare or becoming
increasingly less available is always more appealing, and adds urgen-
cy to our need to purchase. The psychological phenomenon known as
“FOMO” (or, “Fear of Missing Out”) is a form of social proof and
scarcity.
Harnessing social proof is a powerful tool for any marketer. Referrals
from friends and advocates are effective because they leverage our
existing relationships and trust to provide information about a buying
decision.
Perception is Reality: Credibility, Liking
and Scarcity12
The Handbook for Referral Marketing: From Science to Purchase
12 Rieck, D. (2015, May 16). Influence and Persuasion: The Rule of Authority, Liking, and Scarcity. In Direct
Creative. Retrieved from http://www.directcreative.com/influence-and-persua-
sion-the-rule-of-authority-liking-and-scarcity.html
81%
SAY POSTS FROM THEIR FRIENDS
DIRECTLY INFLUENCED THEIR
PURCHASE DECISION
30%
ARE MORE LIKELY TO RESPOND TO
BRAND OFFERS WHEN THEY HAVE
BEEN REPOSTED BY A FRIEND
12. 12
Flash-sale sites like Gilt.com have been able to capitalize on the
impact of perceived scarcity. The limited number of available
quantities of sale items on these sites gives buyers a sense of
urgency, even giving shoppers a “thrill” in securing the items in a
shopping cart.
FOMO is a great forcing function
on decision-making, as evidenced
by the incredible growth of
e-commerce flash sales.13
According to a recent study titled, “Referral Programs and Customer
Value,” customer referral programs are a financially attractive way of
acquiring new customers, largely due to better product-customer
matching.14 The study was conducted over a period of three years, and
looked at a referral program offered by a leading German bank that
paid customers 25 Euros for bringing in a new customer15. An analysis
of customer activity at the bank showed that referred customers
generated higher margins than other customers. Why? Customers
possessed better information about their bank than non-customers.
They also had a better idea than the bank about which of their friends
would be a good match. Using that information, they only referred
prospects that would be a good match for the bank. In sum,
well-matched customers simply generate more revenue at a lower cost.
Better Matching
13 Lee, A. (2011, Nov. 27). Social Proof is the New Marketing. In TechCrunch. Retrieved from http://tech-
crunch.com/2011/11/27/social-proof-why-people-like-to-follow-the-crowd/
14 Unknown (2010, July 21). Turning Social Capital into Economic Capital: Straight Talk About Referral
Marketing. In Wharton Business Digital Press. Retrieved from http://whr.tn/1BSxsbp
15 Ibid.
The Handbook for Referral Marketing: From Science to Purchase
14. 14
This may seem obvious, but this step is often
overlooked. Is your goal to drive new customer
signups? To get more reach (even if leads aren’t
quite ready to convert)? To increase sales?
Focus on measurable impact for your business.
Your objective impacts how you design your
offer and call to action for your referral cam-
paigns.
For example, if you are a hotel booking site, you
may want to use referrals to generate repeat
purchases due to the low repurchase rate in the
industry. Or, if you are an online clothing com-
pany, you may want to use referrals mostly to
get new customers because repeat purchase
rate is high. A happy shopper will come back
over and over again. On the other hand, if your
business sells infant car seats, you might want
to focus on increasing new sales (since a
customer may only buy one car seat in their
lifetime).
STEP 1 Identify your objective
In the next few pages, you will learn how to build a successful referral marketing program for
your e-Business, and capitalize on the psychology behind human decision-making. Use the
worksheet at the end of the Handbook to create an action plan for your referral program.
TIP: The three most common goals for our customers are:
1. Improve economics of
acquiring new customers
2. Increase lifetime value
of current customers
3. Guarantee advocates get
rewarded fairly, preventing
program abuse.
The Handbook for Referral Marketing: From Science to Purchase
WORKSHEET: BUILD YOUR ACTION PLAN
1. REFERRAL PROGRAM OBJECTIVE:
B. FOR THE FRIEND:
DAYS:
DAYS:
B. IF THE OFFER IS CLICKED, BUT DOES NOT CONVERT:
Worksheet on Page 26
2. TARGET AUDIENCE:
A. MOTIVATED BY:
B. NEEDS/WANTS:
C. WHERE THE PROGRAM WILL TARGET THEM (e.g. browsing, post-purchase, email):
3. REFERRAL INCENTIVE(S)
A. FOR THE ADVOCATE:
4. CONVERTING THE FRIEND
A. IF THE OFFER IS UNOPENED:
i. AFTER
ii. AFTER
15. 15
As the old marketing adage goes, “Right
person, right message, right time.” Ensuring
the success of your referral offer hinges on
your ability to precisely identify your target
audience. Will you be targeting only paying
customers? Or, will you also include advo-
cates that haven’t yet purchased? If you are
including advocates, plan to divide your
referral program to allow it to be accessed
both on a public, standalone landing page,
as well as post-purchase.
STEP 2 Define your target audience
GET A FREE
PAIR OF SHOES
GET A FREE
PAIR OF SHOES
Offer placement as a strategy for referral campaigns
In addition to who you want to target, you should also be thinking about where you want to
reach them. Depending on where the customer is on your site, you can capitalize on their
mindset at different stages of their buying journey. If a lead comes to your site just to browse,
you can serve them with an offer to share your product on Facebook, and give them an incen-
tive of a smaller amount to do so. These smaller discounts might pay off in a big way, giving
you stronger reach with your target audience.
Know the audience and their needs and wants. Determine your referral incentives accordingly.
Tip: Be sure you not only identify your potential customer, but customers
who would be most likely to provide a referral.
The Handbook for Referral Marketing: From Science to Purchase
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16. 16
1. Create a compelling offer. Think about what other offers are already out there in the
marketplace. What are your competitors offering, if anything? Your referral offer should be
the most attractive out of all of your current promotions.
2. Know your cost per acquisition (CPA). How much do you currently spend acquiring new
customers, by channel?
3. Weigh customer lifetime value over CPA. Consider both the advocate purchase and the
friend purchase to calculate an accurate, complete CPA. More referrals means more rewards,
which in turn leads to more purchases by the advocate.
4. Determine your minimum order value. What is the minimum amount the friend needs to
spend to earn the reward?
5. Make sure your incentive fits with your brand image. If your brand doesn’t offer discounts,
frame your incentive as a gift or store credit that is automatically applied upon checkout.
Designing your referral incentive
Referral incentives are very interesting because they can be handled
in many different ways, and because there are conflicting concerns
around them. On the one hand, you want to encourage advocates and
customers to make as many referrals as possible. On the other hand,
you want to encourage referrers to maximize the quality of each
referral. In most cases, depending on the objective of your referral
campaign, you want to avoid creating a referral program that moti-
vates customers and advocates to supply a high volume of low-qual-
ity referrals.
STEP 3 Arriving at your referral incentive
GET 100% OFF YOUR
NEXT PAIR
THE NEXT PAIR
IS ON US!
VS
Tip: A/B testing referral incentives allows
you to maximize the performance of your
referral program. As a brand, you must
find the perfect balance between the size
of your offer and number of sales
generated by the campaign. A/B test
offer incentives to determine what your
audience responds to best.
The Handbook for Referral Marketing: From Science to Purchase
17. 17
Segment offers based on purchasing or
referring activity. This will increase the
likelihood that non-sharing customers will
change their behavior and share your offer.
For instance, larger “activation offers” work
at first, to attract new advocates. After the
advocate refers for the first time, they are
much more likely to continue to do so even
if the subsequent offers are smaller.
Similarly, tiering offers for a certain number
of referrals can also be a great way to
increase engagement with your customer
base and increase the number of net-new
referrals to your business. For advocates
that are frequently referring you new
customers, keep offers fresh by creating
unique value at higher referral volumes.
Segment Your Customers
As a best practice, you should launch your
referral program with a strong, compelling
offer. Your offer should always be the larg-
est incentive or discount you are offering at
a given time. Typically, dollar amount
discounts work better than percent off.
There is no rush to offer aggressive
discounts; you want to be sure you have
confidence that your technology partner
can handle the basics as you scale up your
referral program.
However, if you are trying to justify making
an investment in the referral channel, you
can start by offering a smaller discount of
$5 off or 10% off. Later, you can get more
sophisticated by offering a larger discount
with a minimum order value that reflects
your average and overall order value distri-
bution curve (sometimes companies have
two distinct order value tiers — ex. $20 off a
$75 purchase, $40 off a $200 purchase —
you get the idea).
Start Strong
The Handbook for Referral Marketing: From Science to Purchase
18. 18
Post-Purchase Campaign:
Customer to Advocate. The most common type of referral
campaign, especially for e-commerce or consumer SaaS
businesses. Present an offer that this new customer cannot
refuse- they get rewarded by rewarding their friends. Win,
win.
Invite Campaigns:
The Evergreen. Set it and forget it. Create a permanent
landing page that encourages email sharing, which is the
highest value referral channel.
First Time Visitor (aka “The Activator”) Campaigns
where the reward is doubled will dramatically increase
the number of first time referrers. Once someone is
‘activated’ as a referrer, they are far more likely to contin-
ue referring.highest value referral channel.
Holiday & Promotional. Because the holidays are a
competitive time for e-Businesses, you can drive more
urgency to purchase by doubling or combining your
promotions. Even if your referral offer is not unique,
branding around the holidays make a referral program
appear fresh. This should be done for all major promo-
tional events such as Mother’s Day, Cyber Monday,
Valentine’s Day, Back to School, etc.
Other Great Performing Campaign Types:
Leaderboard. A contest that typically last 1 to 2 weeks. The
top advocate with the most referrals during that period
receives a large reward. A recent retail campaign a Talkable
client saw a 240% increase in referrals during a Leaderboard
campaign.
Product Sharing (aka “Gift to Gifter”). Sharing novel content
with an offer included increases the share rate and the click
rate. This type of offer specifically triggers purchases from
people who would buy your product as a gift during the
holidays, for example.
Instant Reward. Offer an incentive anytime or anywhere by
prompting the advocate to share your brand or product with
their networks. Give a smaller reward just for sharing on
Facebook, for example, to include all types of advocates
(think of it like paying for an impression instead of a sale).
Our Campaign-Based Approach
Leave a little wiggle room in your referral program so that you can offer larger promotions based on your marketing goals, sales goals or
promotional calendar. Working within the objective you defined in Step 1, your referral program can utilize several different campaign strategies:
Something for Everyone
Cash incentives for advocates are great, but don’t forget to also
provide an incentive for the new customer. Try offering a larger reward
to the friend so that the advocate feels more benevolent sending a
referral. Coupon discounts, store credit, or whatever you choose, be
sure it fits with the needs and wants of your target audience.
The Handbook for Referral Marketing: From Science to Purchase
19. 19
Asking your customers a direct question
like, “Do you know someone else who
might be interested in buying this prod-
uct?” can make their mind draw a blank.
Instead, establish that your customer is
happy with your product and their experi-
ence. Then, offer them the referral incentive
or offer you arrived at in Step 3. Try to
reframe your referral offer as a way to help
a friend.
STEP 4
Turning customers into advocates,
aka how to ask for a referral
Tip: Give them a choice. Let customers or
brand advocates choose where they
want to share your offer. Most often this
means on Facebook or by email.
WHO NEEDS
SHOES? TELL THEM
ABOUT US
HELP YOUR BEST
FRIEND STEP UP HER
SUMMER STYLE!
GO GO
BAD GOOD
Make it Timely
The best time to ask for a referral is after a purchase or positive experience with your brand.
Capitalize on these events. A Texas Tech study on “The Economics of Loyalty” found that
91% of people are at least somewhat comfortable providing a referral, yet only 29%
actually refer. This clear disconnect means companies need to ask customers for referrals,
and provide them with a clear incentive and mechanism to do so.
The Handbook for Referral Marketing: From Science to Purchase
VS
20. 20
Communicate & Engage
If your advocates learn that many of the people they send your way
become customers, this will often motivate them to continue send-
ing referrals or making repeat purchases themselves. Give your
customers a way to track their referrals, so they can see how many
friends they have referred, who has responded, their possible reward
payouts and earned reward payouts. Pay rewards promptly, and
don’t forget to say thank you.
1 Create a truly great product. The
world’s best referral program can’t
help you unless you are solving a
problem, filling a need, or are
otherwise creating a product that
customers want to buy.
2 Focus on building strong
relationships with your customers.
Aim to delight them at every possible
interaction.
3 Integrate your referral program
wherever your customers interact
or engage with your brand.
Essential Elements for Referral Marketing Success:
Make it Easy & Accessible
Regardless of how much a customer or advocate loves your brand,
if you don’t make it easy for them to refer a friend, they will drop
off. Implement a user-friendly solution that requires little effort
from the customer.
The Handbook for Referral Marketing: From Science to Purchase
21. 21
Be sure to track every site purchase and customer share to reward advocates and friends only when they meet your defined campaign
criteria. Keep in mind that every referral program has two funnels: The first drives propensity for someone to share, while the second
funnel drives propensity for the friend to click on the offer.
STEP 5 Tracking, optimizing & converting
Always Be Optimizing
A/B testing offers is a great way to measure
what resonates best with your target audience.
When you A/B test offers, design experiments
to identify key drivers that get people to share
and get friends to click on the offer and con-
vert. A/B testing an offer headline is low-hang-
ing fruit that can have immediate impact at the
top of your funnel. The offer headline impacts
both open and click rate, so it is an easy way
to get two quick testing wins.
Measure & Adjust
Leverage a dashboard of key referral indica-
tors as a way to set goals and measure the
success of your referral program and
particular campaigns.
The Handbook for Referral Marketing: From Science to Purchase
Dashboard reporting allows you to track your goal with results you can see.
22. 22
The Handbook for Referral Marketing: From Science to Purchase
Net Promoter Score (NPS) is a loyalty metric
that asks ‘On a scale of 0 to 10, how likely are
you to recommend us to a friend or
colleague?’ People who respond 9 or 10 are
considered ‘Promoters’ or loyal enthusiasts.
Those who rate 7 or 8 are considered
Indifferent and therefore not counted.
Unhappy customers— or ‘Detractors’—
respond 0 to 6. NPS is calculated by
subtracting the percentage of customers
who are Detractors from the percentage of
customers who are Promoters. A NPS of zero
is said to be good, while an NPS of 50 or
above is excellent.
Ensure you have a follow-up plan
or nurture program for your
referred leads. However, be sure
you recognize that referred leads
aren’t the same as leads generated
from other marketing channels.
Your referral technology partner should have
a comprehensive, aggregate view of your
goal attainment and campaign performance.
In addition to tracking your referral activity,
you should also record organic traffic growth
and reviews/ratings. Measure the percentage
of your daily visitors who share your site with
others (your ‘viral coefficient’)16. How is word
of your product being shared outside of your
site? Know your Net Promoter Score, if you
don’t already, and monitor it over time.
TIP: Consider creating a unique
coupon code for each customer
to make it easier to see who is
referring new business.
0 1 2 3 4 5 6 7 8 9 10
PROMOTERSDETRACTORS INDIFFERENT
Marketing lingo decoded: Net Promoter Score
16 Lee, A. (2011, Nov. 27). Social Proof is the New Marketing. In TechCrunch. Retrieved from http://tech-
crunch.com/2011/11/27/social-proof-why-people-like-to-follow-the-crowd/
.
Always Be Converting
23. 23
The dangerous assumption some people make about referred leads is that
they have done all their research, are ready to buy, and understand how
you work. The problem with this thinking is that in some cases they don’t
even know they need what you offer. In some cases their friend recognizes
they need your help, before they do and this calls for special handling.”
Best Practices for Following Up With Referrals
Messages come from the advocate. In many cases, the
friend may not be familiar with your brand. Successfully
leveraging the advocate-friend relationship means that
any referral emails or communication should come in the
name of the advocate sharing the offer.
Give the advocate options. Again, respecting the
advocate-friend relationship, you should let your
advocates determine whether or not they want to remind
their friend to act on your offer. Give them an option to
send one 3-day reminder email to their friend. Because
the friend hasn’t opted into receiving messages from your
brand, good corporate citizenship means you should avoid
sending too many unsolicited messages to the friend.
Send the friend a reminder. Plain text works best in these
emails because it feels like one friend writing an email to
another friend. In fact, Talkable clients see 50% higher
conversion rates using plain text email, compared to one
with heavy graphics. Plain text emails are also less likely to
get caught in a SPAM filter.
The Handbook for Referral Marketing: From Science to Purchase
— John Jancht, Duct Tape Marketing.
“The Art of the Referral Conversion”
Your customer put their own
reputation on the line in referring
their friend to your business. Rec-
ognize the specialness of a referred
customer by giving them access to
a special offer (this could be your
referral incentive). When referred
leads become customers, their
personalized, positive first buying
experience ensures they will “pay it
forward” and refer a friend to your
business.
YOUR FRIEND SENT YOU
A GIFT AT SHOEJOY!
CLAIM YOUR OFFER
DAY 0
DON’T FORGET ABOUT
YOUR GIFT AT SHOEJOY!
CLAIM YOUR OFFER
DAY 3
24. 24
A Word About Fraud
Without the right referral marketing platform in place, fraud can destroy your referral
program if left unchecked. If you are using an unmonitored platform, you are neglecting to
exclude unauthorized referral transactions. As a result, the success of your program might
be artificially inflated.
Build Lasting Relationships with Advocates
The Handbook for Referral Marketing: From Science to Purchase
It is very important to give out timely
rewards. It is also important to continue to
engage users who have advocated for your
brand, even if their referral did not result in a
purchase. Be sure to say thank you, ask for
feedback, and continue to communicate with
anyone who has advocated on behalf of your
brand. Continuing engagement is part of
building a larger referral program in place
and will encourage strong long-term results.
A best-in-class referral marketing platform
will help you engage your audience at every
point during their buying journey.
A best-in-class referral technology provider
can deter fraudulent behavior by preventing
suspected violators from seeing the referral
offer. It should also be able to identify fraud
by using basic IP and cookie tracking, as well
as supplemental fraud-detection algorithms.
As a last resort, your partner should provide
you with the option to cancel the transaction.
Your provider should be able to tell you
precisely how they identify and stopped
fraud. Beware of any referral marketing
platform that insists fraud prevention is a
‘blackbox’ solution and doesn’t explicitly
show you questionable transactions are
identified.
Self-referrals are
the most common
type of fraud.
What happens if you find out users are exploiting your referral program?
25. 25
Find a technology partner
Learn about your target audience
Who are they?
What motivates them?
What are their needs & wants?
Determine your referral bonus or incentive
Execute your referral strategy
Test & optimize your campaigns
Convert your referrals
Conclusion
People are 4x more likely to buy when referred by a friend.
— Nielsen
Referral marketing programs leverage trust to provide greater ROI than other marketing channels and convert higher quality customers. From
cognitive fluency to five types of social proof to better matching, we learned about why science makes referral marketing so effective.
Key strategies for implementing a successful customer referral program
The Handbook for Referral Marketing: From Science to Purchase
26. 26
The Handbook for Referral Marketing: From Science to Purchase
WORKSHEET: BUILD YOUR ACTION PLAN
1. REFERRAL PROGRAM OBJECTIVE:
2. TARGET AUDIENCE:
3. REFERRAL INCENTIVE(S)
A. MOTIVATED BY:
B. NEEDS/WANTS:
C. WHERE THE PROGRAM WILL TARGET THEM (e.g. browsing, post-purchase, email):
B. IF THE OFFER IS CLICKED, BUT DOES NOT CONVERT:
4. CONVERTING THE FRIEND
A. IF THE OFFER IS UNOPENED:
i. AFTER DAYS:
ii. AFTER DAYS:
A. FOR THE ADVOCATE: B. FOR THE FRIEND:
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The Handbook for Referral Marketing: From Science to Purchase
WORKSHEET: BUILD YOUR ACTION PLAN
5. FOLLOW-UP WITH THE ADVOCATE
6. PLACES TO INTEGRATE REFERRAL CAMPAIGN:
7. A/B TESTS
A. AFTER
A. REFERRAL OFFER
B. EMAIL SUBJECT LINE
C. OFFER HEADLINE
FRIEND(S) REFERRED
A B
28. 28
SUPPLEMENTAL RESOURCES:
Must-Reads for the Referral Marketers
Thought Leaders
Robert Cialdini. Influence: The Psychology of Persuasion. Harper Business. Revised Edition (2006).
Available at: http://www.amazon.com/Influence-Psychology-Persuasion-Revised-Edition/dp/006124189X
John Janscht. Duct Tape Marketing. Multiple entries.
Available at: http://www.ducttapemarketing.com/blog/?s=referral
Hunter Walk. Referral Programs Power the On-Demand Economy.
Available at: http://hunterwalk.com/2015/04/15/referral-programs-power-the-on-demand-economy/
Josh Yang. Thoughts on Referral Programs.
Available at: https://medium.com/@joshhyang/thoughts-on-commerce-referral-programs-c42e573be354
The Handbook for Referral Marketing: From Science to Purchase
29. 29
SUPPLEMENTAL RESOURCES:
Must-Reads for the Referral Marketers
Editorial
Anne-Marie Kovacs. Affiliate Marketing + Influencer Marketing = Perfect Marriage? In BoomBox
Available at http://boomboxnetwork.com/2014/04/affiliate-marketing-influencer-marketing-perfect-mariage/
Sean Lineham. Why Dropbox’s Space Race is Genius (Referral Program Overview).
Available at: http://sorryhumans.com/dropbox.html
Erin Kang (Liveperson). The Consumer Confidence Gap.
Available at: http://www.liveperson.com/connected-customer/posts/consumer-confidence-gap-why-digital-first-
generation-needs-human-touch
(Unknown) Influencer, Affiliate and Advocate Marketing: What’s the difference? In CMO Essentials.
Available at: http://cmoessentials.com/influencer-affiliate-and-advocate-marketing-whats-the-difference/
#sthash.PT8KB1yZ.dpbs
Bazaarvoice. Talking to Strangers: Millenials Trust People Over Brands:
http://resources.bazaarvoice.com/rs/bazaarvoice/images/201202_Millennials_whitepaper.pdf
Social Influence Marketing Trends. Report by Razorfish.
Accessible at: http://www.slideshare.net/razorfishmarketing/social-influence-marketing-trends-2974341?related=1
Achieving Big Customer Loyalty in a Small Business World.
Accessible at: http://wordpress-src.s3.amazonaws.com/wp-content/uploads/BiaMantaKelsey-SBloyalty.pdf
The Handbook for Referral Marketing: From Science to Purchase
30. 30
SUPPLEMENTAL RESOURCES:
Must-Reads for the Referral Marketers
Case Studies
Pura Vida, Talkable Case Studies: Pura Vida & Plastic
Accessible at: https://www.talkable.com/resources/
Startup Lessons Learned. Drew Houston (Dropbox). Slides 26-32 discuss their famous customer referral program.
Available at: http://www.slideshare.net/gueste94e4c/dropbox-startup-lessons-learned-3836587
Hacking Word-of-Mouth: Making Referrals Work for Airbnb.
Available at: http://nerds.airbnb.com/making-referrals-work-for-airbnb/
The Handbook for Referral Marketing: From Science to Purchase
31. 31
About Talkable
Talkable is the leading referral marketing platform, helping the modern marketer acquire new customers
and increase sales through Refer-a-Friend campaigns. The Talkable platform is designed to help you easily
build, test, and analyze referral marketing campaigns. We help you leverage the science behind referrals
to generate the best performing Refer-A-Friend campaigns for your E-Business.
Learn more at www.talkable.com, via Twitter @Talkable, and at blog.talkable.com.
The Handbook for Referral Marketing: From Science to Purchase