You’ve heard people talk about word-of-mouth and referral marketing and you probably understand the value of an authentic recommendation from a loyal customer. For example, 92% of consumers trust recommendations from people they know directly. But what does referral automation really mean? How does it work and why is referral marketing technology critical to building, optimizing, and scaling these programs in a way that drives revenue?
Think about the last time a word-of-mouth referral program influenced one of your purchasing decisions. Maybe a friend shared their love of a subscription service like StitchFix, a co-worker sent you a referral code for free Uber credits, or a neighbor recommended their favorite contractor. Or maybe it was as simple as a friendly suggestion on where to go to dinner. Regardless, you probably acted on the referral, in part, because it came from someone you trusted.
If you take a look at the personalities that big brands are scouting to become brand ambassadors, the lineup starts to look a lot like the red carpet for last night's 88th Academy Awards. Think Chris Hemsworth for TAG Heuer, Rihanna for Puma, Chiara Ferragni (of The Blonde Salad fame) for Pantene, and Drake for the Toronto Raptors. These well-known names and faces have a ready army of fans and have achieved a high-level status across several social circles. Companies are starting to leverage ...
In the referral marketing world, there seems to be a debate brewing over the most effective way to identify, enroll, and engage ambassadors. In one corner is the belief that carefully enrolling only your most loyal and passionate ambassadors is the best approach. The thinking here is that those people, who already love and support your brand, will happily and aggressively work to generate referrals and new business for your company.