Customer Loyalty

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In 2016, Oxford Dictionary chose “post-truth” as the word of the year. Yes, the Internet was designed to make information accessible to everyone around the world. But at some point it just became too much and we gradually began losing trust, even when it came to deciding which eco-toothbrush to buy online.  

 

There is too much information, too many corporate blogs and business pages on social media. After all, it’s become so overwhelming that we, as consumers, went back to basics: we still trust the peer reviews and our friends’ experiences. A typical customers’ journey consists of 4 key steps: 

 

 

While paid advertising definitely may help your product or services gain awareness, when it comes to making the final decision, 88% of internet buyers say they trust online reviews, and 92% rely on advice from friends and family. Moreover, as you might have noticed, the customer journey doesn’t end with their purchase! If you’ve done a great job meeting your clients’ needs, they reward you by sharing their positive experience. And that’s the nature of purchase decision we exploit in our referral campaigns. 

 

So if you’re doing paid advertising but haven’t yet started working on referrals, we’re going to convince you to adjust your marketing strategy right now, and we will be backing our points with numbers and metrics — something a digital marketer would not want to miss! 

Referral Marketing

 

Referral marketing is a way to promote your brand and gain new clients by word of mouth from your existing customers. Until recent years, referral marketing has been considered somewhat uncontrolled and messy —  lots of forms, complicated links, and inappropriate messages. No wonder businesses relied mostly on customer satisfaction levels and metrics like NPS, didn’t know how to motivate their customers to promote the brand, and didn’t have many dedicated tools to run and analyze referral campaigns. But things change and new solutions appear. Any referral program can be tracked from start to the end. So, when talking about referral marketing, in most cases we mean controlled and managed customer acquisition campaigns that follow specific templates, techniques, and the science behind the referral offers. 

How Referral Programs Work 

 

One example of a successful referral program run by an eCommerce company is Soko Glam’s referral campaign. 

 

As a company that sells curated high-quality Korean skincare products and cosmetics, Soko Glam operates in a highly competitive field. What this means for their marketing department is that buying online ads from the biggest vendors like Google or Facebook, whose business models are based on RTB auctions, becomes overly expensive since they have to compete with many other businesses that want to get to the same target audience. 

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