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Referral marketing is often an overlooked strategy. However, Mark Choueke, marketing director at Mention Me, explains why it can be an effective route for marketers and how it works to earn customer trust.

For marketers yet to turn their attention to the extraordinary customer acquisition mechanic of earned growth, referral might be the last marketing channel to come to mind.

For those already giving their customers a participating role in their brand’s success, it’s the last marketing channel they’d switch off.

This was literally true for Lindsay Newell, head of UK marketing at Bloom & Wild, one of Europe’s largest online florists. She knew the customer lifetime value the business derived from referral marketing exceeded that of both paid search and paid social.

So much confidence did the business have in its referral marketing program as a growth driver that when it was forced to ‘turn off’ marketing in May 2020 after the Covid-19 pandemic prompted the first lockdown, referral marketing was the only channel it left running.

The florist grew its UK referrals by 800%, despite promoting it at fewer points in the customer journey than previously.

Newell, meanwhile, says her team tests constantly to learn how various markets and customer cohorts respond differently to messaging and incentives through referral campaigns.

Such success stories were once rare for a marketing channel that is now fast growing into its own skin and becoming comfortable with a more pivotal, strategic status in the marketing stack.

Traditional household brands and established retailers are now joining pure play online businesses in approaching customer acquisition and experience with an ‘advocacy-first’ mindset.

This shift toward earned growth isn’t a replacement for anything. Comprehensive Referral Engineering® programs act as a valuable addition to, and amplifier of, existing marketing strategies.

Menswear brand Spoke put its first-party referral data to work across its paid social channels to target consumers that looked like the retailer’s most valuable referrers. The experiment saw a 65% increase in conversion rates, a 30% jump in ‘return on ad spend’ and a 12% reduction in the cost of acquiring new customers.

Crucially, though, none of the above speaks to the single most important opportunity addressed by a move toward earned growth.

That is that advocacy – and importantly the level of participation it encourages in those we sell to – is slowly shifting the emphasis of marketing from the brand to the customer.

Referral done properly is data-driven – but it’s customer-led.

Amplified in the past two years by the forced loss of so many day-to-day freedoms we once took for granted, consumers are hungry for autonomy and self-determination. They want a more direct role in the way they shop for (and engage with) the products and services with which they choose to identify.

Consumers want to participate; to interact, share and recommend. Your buyers’ e-commerce journeys don’t begin on screens. Increasingly they start with offline conversations; not about your brand or product, but about their interests, their passions and their needs.

What does that mean for your brand? Well, it means your best marketing in 2022 will likely happen in the most ‘un-marketing’ moments.

It means your effective media channels will include everyday occasions in your customers’ lives: chats between parents at the school gates; picnics and pub nights; weekend walks and barbecues with friends; Sunday roasts with the family.

Customer participation will become as crucial in delivering experiences that match your buyers’ expectations as personalization has been in recent years.

For while automation driven by big data has transformed customer experience capability, the spreadsheets and numbers that dominate our customer experience conversations risk becoming somewhat divorced from the end users they represent.

Abstract scores only tell us so much about our customers’ values, beliefs and versions of what a relationship with our brands should look like.

New perspectives and a shared commitment to twinning comfortably volunteered first- and zero-party data with more innovative partnerships will get brand marketers closer to the customer stories that end users would recognize, buy into and participate in.

Referral is a rare marketing discipline, carried out in the cultural mode and language of consumers – normal people who don’t share the marketer’s vocabulary of ‘funnels,’ ‘touchpoints’ and ‘conversions.’

Our businesses are drowning in third-party data (though perhaps not for much longer). Yet how much does this data really tell us about our customers? There’s an unfilled gap between the reported customer insight that much of our data promises, and the legitimacy – the purity – of customer participation. It’s a gap similar to that between reading sheet music and being in a live audience while witnessing a spine-tingling performance.

After thousands of years of retail, your customers still sell your stuff better than you do, without even trying. Now we have the expertise to understand the psychology of referral and the science to drive, track and measure it, you can give your best customers the power to grow your companies.

Click here to see how leading brands use Referral Engineering® to acquire high-value customers while energizing existing ones.

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Sourced from The Drum

By Amanda Robinson.

The more people engage with your ad and post, the more likely it is to be seen by people outside your target audience.

The following excerpt is from Ultimate Guide to Social Media Marketing by Eric Butow, Jenn Herman, Stephanie Liu, Amanda Robinson and Mike Allton, available now via Entrepreneur Press. Order from Amazon | Barnes & Noble | Apple Books.

Boosting your  Advertising efforts is an investment you might want to consider if social media marketing is a big part of your overall marketing strategy.

When you decide to advertise with Facebook, you can either create a new ad or use a status update you’ve already shared.

The ad fee structure is similar to  in that you can set a daily budget, but you don’t set a bid per click. Instead, Facebook will begin showing your ads; the more interest people show, the less per click you’ll be charged. So it’s in everyone’s best interests to create Facebook ad posts that are interesting and compelling.

In addition to driving traffic, you can use Facebook ads for  and simply pay for engagement — in other words, likes, comments and shares. The more people engage with your ad and post, the more likely it is to be seen by people outside your target audience.

Unlike  ads, which are 100 percent text, Facebook ads can be links, images or even video. You can use a single image or a carousel of images. You can even upload multiple images and let Facebook test which one resonates best with your audience.

You can also set up a remarketing pixel (a snippet of code installed on your website) so that Facebook can track users who have been to your site and allow you to “remarket” to them with an ad specifically targeting them.

Here’s how remarketing works. Once you have a Facebook pixel installed on your site and are driving targeted traffic using Google Ads (and, of course, other means), you are equipped to amplify the illusion of frequency.

With a pixel in place, you can now create Facebook ads targeting people who have visited your site, or even specific pages or posts within your site. This is referred to as retargeting or remarketing.

You’ve doubtless experienced this yourself. Spend a couple of minutes looking at cars on an automotive site, and suddenly every site you go to is displaying ads for that brand of car. Because you showed interest in a brand or product by visiting their site, advertisers smartly wish to capitalize on that interest and keep themselves top of mind.

You can now do exactly the same thing!

When your Google ads effectively capture someone as they’re searching for you or information you have published, they register as a visitor with the Facebook pixel. If Facebook recognizes them as a user and you are running a remarketing campaign that includes someone like them, you can layer brand-awareness or added-benefit advertising on Facebook or , which will potentially be seen by someone who was already demonstrating search intent and is familiar with your brand. This is extraordinarily powerful and effective.

Couple this technique with problem-solving content, and you now have a means to reach people who you know have an issue and may need help to solve it. That help might include:

  • How-to guides.
  • Answers to frequently asked questions.
  • Case studies.

Let’s say you’re a local attorney specializing in family law. You can write a series of blog posts that answer common questions about divorce, child custody, estate planning and so on, and then use Google Ads to help people who are searching for those answers find your content. You can then place Facebook ads that encourage those people to call you for more information and assistance.

Or let’s imagine you own a wedding dress shop. Same scenario: Create content that answers common questions brides have about their special day, use Google Ads to drive intentional traffic, and then leverage Facebook to make sure those brides know about your gorgeous dresses by placing ads showcasing your latest offerings and retargeting your website traffic.

Whatever products or services you have to offer, this technique can be implemented, tested, refined and then scaled up.

Feature Image Credit: Image credit: Kornburut Woradee | EyeEm | Getty Images

By Amanda Robinson.

Sourced from Entrepreneur Europe