The 10% Challenge: Unleash Customer-led Growth
The 10% challenge is the simplest way to answer the question: “Can I benefit from Customer-led Growth?” If you are not getting at least 10% of your new accounts from referrals by existing customers, you are not only failing to exploit a low-cost acquisition channel, but you are also forgoing the benefit of a higher-quality, more profitable customer base.
The 10% Challenge Couldn’t Be Simpler.
In the next meeting where you review your acquisition targets versus actuals, calculate the percentage of your new accounts that can be attributed to the advocacy of existing customers. Referral should account for 10 out of every 100 new acquisitions.
If You Lack Metrics…
If you can’t calculate, that is a profound opportunity to tap into a fabulous, underdeveloped channel. If you can, but it is single-digit, then you should review how you market your referral programs—are you reaching every potential advocate? Are you personalizing the offer to specific audiences with distinct networks of valuable prospects? Is your incentive compelling and the experience seamless?
No Excuses, You Got This!
In the current digital environment, there is no excuse for being below 10%, and there are examples of firms just like yours doing 20% and even 30% or more. The difference is that they have crossed the 10% barrier. They recognize that when a channel costs less and produces better customers, then the only question is, “What do I have to do to get more of those great customers?”
Why Customer-Led Growth Now?
Customers are overwhelmingly driven by social cues, influencers, and referrals from friends and family. Yet brands dedicate most of their marketing budget to big tech social and search channels that are getting more expensive and less effective while increasingly disconnecting brands from their customers.
Activate Customer-Led Growth and boost customer acquisition with a measurable go-to-market strategy to grow your customer base with less customer acquisition cost (CAC) and higher long-term value (LTV) resulting in a strong LTV:CAC ratio.
CEO Insight, Listen to Matt Roche
People Sell Products
Download our best practices guide.
Supercharge Your Customer-Led Growth Engine
Customer-Led Growth enables brands to influence, reward, and scale the behavior of your brand ambassadors. Sharing, referring, engaging, and using, are not new activites, your ability to encourage and show your gratitude at scale is!
Your customers are already a Customer-Led-Growth channel for you, Extole makes it actionable and measurable.
Customers drive most marketing — we drive it— what you buy, what you wear, what you read, what you own, and what you watch — is most certainly driven by a friend or someone you respect. And there is one group in the marketing ecosystem that doesn’t get respect or recognition, and it is the same group that’s driving almost all of it. So the mission at Extole is to recognize the power of the people.
Customer-Led Growth is Here to Stay
Customer-Led Growth companies are objectively more valuable. A new analytical approach called “earned growth rate” captures the revenue growth generated by returning customers and their referrals. Extole is built on six core principles of Customer-Led Growth.
Customer Activity
Make customer advocacy, engagement, and connection the desired goal and outcome of every marketing decision. This focus ensures you create active and engaged advocates
Permission First
CLG is rooted in our customers’ permission to connect. When we engage and reward customers, we create a two-way connection that builds strong long-term engagement
Authenticity
CLG forms meaningful connections to enable your customers to tell their authentic stories. Authentic stories about your authentic brand is the key to unlocking CLG
Customer Inclusion
Experience is not transactional, it is a two-way relationship between you and your customers driven by their affinity for you and your gratitude for their engagement
Customer Advocacy
CLG is more than a marketing strategy - it is a cultural cornerstone. CLG-driven organizations consider customer engagement in every decision, in every function, every time
Customer Segmentation
Segment and personalize customer experiences based on what the customer is willing to do, what delights them, and not just what they are willing to buy
We desperately needed a tool to assist in the automation of our referral program. Extole's platform did exactly that and more! Our evergreen referral program has generated high quality new members and with the addition of the concierge programs, we' ve been able to achieve our business development goals as well.
