Referral marketing final

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  • According to McKinsey 2010 report. The other two factors are advertising and previous usage. Word of mouth is particularly important at the moment of purchase, has 46% power in comparison with 40% of marketing.
  • It is all back to the fundamental question which is where is the referral should be in the life cy
  • Referral is actually the last stage of the ideal customer life cycle Customer-focusedmindset is at heart of the company’s philosophy -> website and showroom, not the office are the real face of the business: choice, presentation and serviceIn order to have the referral stage, all previous stages should also be focused carefully
  • Referral is actually the last stage of the ideal customer life cycleReferral marketing should be considered from the customer’s point of view
  • Referral is actually the last stage of the ideal customer life cycleReferral marketing should be considered from the customer’s point of view
  • We can add value to the customer during the payment stage by sharing them knowledge of how to look after their products in order to use them for effectively for a long timeWrapping paper absorbed by perfume to increase the look & feel factor, this little thing can make them understand how 2en really cares about our luxury products -> improve the look & feel factorIn the follow up, we can ask whether they are happy with the product, customer service or not. We may also ask for what their favourite products, so we can email or call them when new arrival products are available.
  • Customer refers to customers (direct network)Employee refers to their networks (direct network) Business refers to business (strategic partners)
  • Higher level of personal partner should be employed to people who have strong influence to other people ( wholesalers, fitness teachers, etc.)
  • Well known in the market = They should be someone you would feel 100% confident to refer your best customers.
  • Other bonus packages may include:Refer 5 people to buy – get a voucher of 300k VNDRefer 10 people to buy – get a voucher of 700k VNDGive them free gifts based on referral activities
  • The core intention of building strategic partner networks is to offer added values to customers.We can double check the list of potential partners with 2en’s staff and regular customers to select the best fitted partners.
  • A specific day for referral will remind partners to refer customers to each otherWe can do a regular review every 1-3 month period to see how the referral system works or support each other in terms of customer service
  • Referral marketing final

    1. 1. Referral Marketing<br />Q2 2011<br />
    2. 2. Agenda<br />Overview<br />Philosophy of referral<br />Potential marketing partners, who are you?<br />List of potential marketing partners<br />Action plan<br />Execution<br />Recommendations<br />
    3. 3. Overview<br />90%of people cite product referrals as the most influential and trusted form of advertising<br />70% ofpeople trust consumer opinions posted online<br />Brand websites are trusted at that same 70%level as online consumer opinions<br />
    4. 4. Worth noting<br />A satisfied customer will tell 3 people about her positive experience with you within a month<br />An unhappy customer will tell 7 people of a bad experience within a week<br />Referral/ word of mouth is ranked the most important factor that influence people’s purchase decision *<br />* According to McKinsey 2010 report<br />
    5. 5. Ideal customer life cycle<br />
    6. 6. With referral…<br />Know, trust are eliminated thanks to the power of referral <br />
    7. 7. Philosophy of referral<br />
    8. 8. Philosophy of referral<br />
    9. 9. High quality customer service<br />Before purchase stage (consulting service)<br />During payment stage<br />Cards with product care instruction<br />Wrapping paper absorbed by perfume<br />After payment stage<br />Purposes:<br />Increase the personal relationship with customers<br />Collect data to analyse the customers’ behaviour<br />Monitor the sales service and double check the customer’s satisfaction<br />How?<br />Follow-up call service 2-3 days after the delivery status is done <br />This team should be separated from the sales team<br />
    10. 10. Referral Marketing in action<br />
    11. 11. Referral strategies<br />Customer refers to customer (personal partner)<br />Employees refer to their networks (personal partner)<br />Business refers to business (strategic business partner) <br />
    12. 12. Personal partnership programme<br />Why?<br />They like 2en so much<br />They find someone has the same need as theirs<br />Their personal image to become a trusted source<br />They know about 2en better than anyone else<br />
    13. 13. Benefits to motivate a personal partner<br />Commission<br />7% of the value of total receipts we have from their referrals<br />Get VND 1mil as a bonus for the total receipts from VND 80-100mil <br />Get VND 2mil as a bonus for the total receipts over 100 mil <br />Higher level of personal partner: 10% off every purchase, except for top luxurious brands such as Movado<br />VIP benefit<br /> The right to know and purchase new arrival products 1 or 2 days before they are physically available in showroom/ website <br />
    14. 14. Strategic partnership programme<br />Who?<br />Share the same target market<br />From 24 upwards<br />Middle to high class consumers<br />Beauty & fashion savvy <br />Well known in the market<br />Why should they refer?<br />Add value to the relationships they have with their customers<br />Expect us to refer them in return<br />Trust 2en 100%<br />
    15. 15. How…2en can cooperate with strategic partners<br />Co-branding<br />We can do brochures, leaflets, posters or joint magazines together<br />Present logos, introductions on each other’s website <br />Giving each other products as a prize for the winner of the partner’s ‘lottery’ competition for their customers<br />Joint marketing<br />Employ referral engine<br />Create campaigns to exchange each other’s vouchers and marketing materials<br />Events/ Workshops<br />Co-organised events to raise awareness over fashion related trends in which we can promote our products, services together<br />
    16. 16. Benefits…strategic partners can get <br />Approach 2en customer base with about 3000 customers who are high class and savvy consumers, some are celebrities<br />Reach new distinctive ways of marketing<br />With the expertise in online performance: 2en is the most visited online fashion business in Vietnam <br />The traffic is normally 5000 visits per day<br />More than 15000 Facebook fans<br />Strengthen the relationshipwith customers by offering related high quality services<br />Access 2en’s partnership network and enjoy efficient ways of marketing through other 2en’s business partners<br />Get commission based on referral activities<br />
    17. 17. Commission packages for strategic partners<br />7% commission package<br />7% of the value of total receipts we have from their referrals<br />Get VND 1mil as a bonus for the total receipts from VND 80-100mil <br />Get VND 2mil as a bonus for the total receipts over 100 mil<br />Other bonuspackages<br />Get paid if 2en places ad light boxes at their branches<br />Share the costs of co-branding activities<br />
    18. 18. Steps in action…<br />Construct 2en’s value network<br />Identify 2en’s potential partners<br />Invitation to join<br />Activate 2en’s partner network<br />Engage 2en’s network<br />Follow up the network<br />
    19. 19. Construct 2en’s value network<br />Adopt the customer’s point of view as the principle of referral<br />Do I feel 100% confident referring my best customers to them?<br />The final purpose is to increase 2en’s value in customers’ eyes<br />Identify 2en’s potential partners <br />Share the same target customer<br />Have good reputation in the market<br />The category includes hair salons, beauty salons, fitness centres, dental clinics, and car dealers<br />Invitation to join<br />Show them 2en’s interest to refer them to 2en’s customers<br />Stress the key point of the cooperation is to benefit customers the most<br />
    20. 20. Activate 2en’s partner network<br />Co-branding should be considered carefully as it is the highest level of referral<br />Level 1: exchange vouchers, commission<br />Level 2: Co-organise events<br />Engage 2en’s network<br />Follow up the network<br />
    21. 21. Activate 2en’s partner network<br />Co-branding should be considered carefully as it is the highest level of referral<br />Level 1: exchange vouchers, commission<br />Level 2: Co-organise events<br />Engage 2en’s network<br />Commission<br />Cash in the form of vouchers<br />Free gifts as an added bonus<br />Follow up the network<br />Make a specific day of referral<br />Review every specific period <br />Should be employed first<br />
    22. 22. List of potential strategic partners<br />
    23. 23. List of potential strategic partners<br />
    24. 24. Execution<br />
    25. 25. Potential partners<br />Ngoc Dung cosmetic surgery & skin care clinic<br />Tan Truong Tan beauty treatment centre<br />Kieu My fitness & spa centre<br />
    26. 26.
    27. 27.
    28. 28. What’s next?<br />Cooperate easily with Kieu My fitness & spa<br />Employ a 7% commission package<br />Print out stickers with a specific promotion code to give them<br />Based on her referrals, treat her as a good source for VIP customer market<br />With Tan Truong Tan beauty treatment centre<br />Exchange coupons first to see how it works<br />Place leaflets/ poster/ advertising light box at branches <br />With Ngoc Dung cosmetic surgery<br />Employ the 7% commission package first<br />Should be cautious about their plan to publish magazine<br />
    29. 29. Recommendations<br />
    30. 30. Employ referral campaigns flexibly according to partners<br />Prepare leaflets/ business cards in hand<br />Prepare coupons<br />Co-branding should be considered carefully<br />Enhance the customer service<br />During payment stage<br />After sales care<br />Improve the interactivity of Facebook page<br />
    31. 31. Thank you<br />

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