Profit from Referrals and Reviews

Going Viral

Want cheaper customer acquisition costs and higher lifetime value from your customers?

Here are 2 levers (and playbooks) for achieving just that.

Today, we'll look at 2 sides of viral marketing, the customer review and the referral. But first, if you're happy with our courses, content, and services; then take a moment to leave us a quick review :)

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First, what's viral marketing?

Going "viral" isn't just for social media platforms. It's having a product or service with an experience such that customers feel compelled to tell others. Here are 2 components of viral marketing that are worth your time (and easy to execute):

1) Customer Reviews

Studies show:

97% of consumers go online to research products/services in their area before purchasing
93% of consumers make purchase decisions based on online reviews!
30% of consumers cite personal recommendations (i.e. referrals) when discovering products/services

Translation?

First, you need an online presence; it's not optional. Next, be more intentional about asking for and incentivizing customer reviews (especially those with good experiences).

A simple playbook when it comes to reviews:

Pick 1-2 platforms to focus on — i.e. Google, Facebook, Yelp, other platforms where your following is
Make it easy to leave a review — create a custom webpage, have a link in your email signature, leave a QR code everywhere (in store, on receipts, on your website)
Ask the customer — train your team to initiate the ask for a review (especially after positive experiences)
Create an automated nudge — a simple email reminder after delivery (i.e. a few days or weeks later)
Respond to every review within 24 hours — add a polite "thank you" response publicly, this shows your engagement and attention to customers
Use testimonials in other marketing collateral — these aren't single-use comments on your product/service, and oftentimes, these will show you where your differentiator is!
Take negative reviews offline — apologize, ask the customer what could have been done differently, etc.

2) Referrals

Referrals are amazing customer acquisition. A referral is when a satisfied customer refers a friend in need of your product/service. This has tons of benefits — sales growth without any inbound/outbound effort, lower customer acquisition costs, higher close rates, and maybe most importantly, a positive predisposition to your company! (Happy customers are always better than grumpy ones.)

Here's a simple playbook when it comes to referrals:

Make the ask — this is always the hardest part of the referral process because we feel uncomfortable asking for more business
Track referrals — add a "referred by" line on inquiries, forms, quotes, etc. (you want to know who your brand ambassadors are)
Ask at the point of positive experience — much like reviews, the best time to ask is at the point of peak experience
Make it easy to refer — whether you have a dedicated webpage, a point person to email, or brochure; make it easy for the referrer to pass along your information
Reward your ambassadors — treat referrers like gold; these people are marketing on your behalf! send a thank you, gift card, or some other gesture
Automate and integrate — reinforce the process with your staff, incorporate into onboarding, renewals, or checkout, and add easy "share" links in your store, website, emails, etc.

Takeaway — Reviews and referrals are powerful marketing tools. Reviews: Treat them like gold. You'll notice increased conversion as higher volumes of positive reviews flow in (it can even create a competitive differentiator). Referrals: treat them like brand ambassadors marketing your business for you. Ask and incentivize the referral process.

Homework — Look back at your last 10-15 positive customer interactions. Reach back out to that person and ask them to either: 1) refer a friend; or 2) leave a review online.