New customer acquisition is always a key marketing goal. In subscription-based businesses, it’s about building your subscriber base through a combination of online and offline tactics. For businesses with loyal, passionate subscribers, word of mouth (WOM) can drive a significant percentage of new business – with WOM recommendations converting at 3-5x any other marketing channel.
Fundamentally, people trust their peers more than they trust advertising. So, programs that help brands tap into their existing customer base and incentivize WOM referrals drives significant marketing ROI. Subscription businesses can drive loyalty, awareness and new customer acquisition through referral marketing programs.
Take, for example, a leading provider of digital television and entertainment services. Wanting to drive awareness, acquisition and sales, the provider launched an Extole-powered referral marketing program in 2012, which they promoted through offline and online channels. The program rewards both advocates and their friends. Advocates receive bill credits for every friend that signs up, and referred friends get discounts on their monthly service bills.
Results for past 6 months include:
With improved results across the entire marketing funnel, it is clear that referral marketing programs are a great way for subscription-based companies to grow their subscriber base. Both brands and customers are rewarded; the customers receive discounts or deals for spreading WOM and the brands reap the marketing benefits.
To learn more about how Extole can help your company tap into the power of its customer advocates and improve marketing results across the entire marketing funnel, CONTACT US today.