As marketers, our life is reach. How many more names will this list get me? How many more impressions will this keyword yield? More is almost always better. Except in peer to peer marketing.
On a daily basis, hundreds of thousands of your customers tell their friends about your brand, your products, what they love and why their friends should do business with you. Savvy marketers are constantly looking for tools to help them encourage these conversations. It makes sense that if you can motivate your customers to talk, you should maximize how much they do. Enter the address book contact importer.
We’ve all done the math: “If I can motivate 4 people to recommend my brand to 4 of their friends, that’s 16 new customers. But, if I can motivate 4 people to recommend my brand to their entire address books, I’ll be the company hero. They’ll make me CEO. I’ll retire early on my own personal Caribbean island…” Abandon all hope all ye who enter here — the numbers don’t work out that way.
Across industries we’ve seen that when your customers are encouraged to send more than 4 emails at a time, the conversion rates of those emails plummet precipitously to zero. Think walls of the Grand Canyon precipitous. The incremental sales you drive are the equivalent of a rounding error. Check this out:
It makes sense if you stop to think.The magic ingredient in a customer recommendation is in its sincerity. Referrals work when your customer loves your product or service and knows just which of his or her family and friends will, too. And, boy can it move the needle. For Dropbox, peer to peer marketing drives 30% of new customer acquisition, which is similar to some of the results we have seen here at Extole. In addition to driving new customer acquisition, referred friends also spend 16% more in their lifetimes with your brand than customers acquired through traditional media.
Bottom line: authenticity is key in driving marketing results.