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What You Need to Survive and Thrive in the Market: the Four Pillars of Amazon’s Success

What You Need to Survive and Thrive in the Market: the Four Pillars of Amazon’s Success

By being customer-centric, continuously optimizing and innovating, and creating an agile corporation, Amazon.com has dominated the market. Your company can as well, says best-selling author and online conversion optimization expert Jeffrey Eisenberg.

Here are some insight into how Amazon.com became an online retail behemoth, and how companies can adopt what Amazon.com has done and win.

Conversation between Jeffrey Eisenberg (Online Conversation Optimization Expert) and Danny Goodwin (Amazon User)

Danny Goodwin: I use Amazon a lot, as do many of our readers. I recently saw a figure that Amazon accounts for 30 percent of all e-commerce sales in the U.S. How has this happened? Why do we use Amazon so often? What has been the key to Amazon’s growth and success?

Jeffrey Eisenberg: Amazon.com sold its first book in July of 1995. They ended 2013, selling $74.45 billion worth of stuff, all kinds of stuff.

The company did not start out knowing substantially more than most other businesses starting their efforts online, but because it was willing to think ahead, develop data-driven technologies and push the boundaries of how best to do business on the Web, it is now the largest online retailer. It now captures about 30 percent of every e-commerce dollar in the U.S. (and in many other markets as well), and it is also a successful B2B vendor, hardware developer and publisher.

Amazon is 10 years ahead of the curve and even leads strongly data-centric companies like Walmart. Amazon was built upon Jeff Bezos’ vision and the four pillars of success:

  1. Customer Centricity
  2. Continuous Optimization
  3. Culture of Innovation
  4. Corporate Agility

DG: When looking at Amazon’s success, what is one core tenet Amazon embraces that maybe other digital marketers aren’t, but should be?

JE: “The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.” ~ Jeff Bezos, founder and CEO of Amazon.com

DG: When looking at Amazon’s optimization strategy, what impresses you most and why?

JE: Amazon continuously optimizes every aspect of their business. I don’t mean the traditional marketing optimization tactics of A/B testing changing buttons or buyer flows but they optimize operations, marketing. finance, etc. To get a full understanding of how they push all of their operations to optimize it is worth taking a few minutes to look through the Slideshare Amazon.com: the Hidden Empire.

Back in 2004, we knew that Amazon.com was already doing more than 200 marketing optimization tests at any given time. Even today most companies average between two and five tests a month.

So imagine if Amazon has not scaled the amount of tests they had but continued to do only 200 tests a month and most of their competitors did even 10 tests a months, how many more times is Amazon learning and optimizing over their competitors. The key is that Amazon.comunderstands that optimization is not a tactic or a project but it is a strategic competitive advantage woven into the management of their business and it’s ultimate responsibility of the CEO.

DG: Amazon and Google have become competitors in a few areas, such as shopping, entertainment, tablets, and so on. Where do you see this fight going over the next few years, and who do you think would ultimately win in an Amazon vs. Google fight?

JE: Amazon and Google will both be winners. However Amazon, to a greater degree than Google, has a Bias for Action among their core values:

“Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.”.

DG: Is Amazon just so far ahead of everyone else it’s game over? Or can companies compete with Amazon.com? If so,why? If not, why not?

JE: The game is not over. Nevertheless, most companies will not be able to compete; they won’t even be able to catch up.

The Four Pillars of Amazon’s success can be adopted by other companies, they will be other winners, too.

 

Compiled by: Ayanleye Samuel Oluwafemi (CEO, Packagingstores)

Excerpts: LinkedIn Marketing Solutions.

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Benefits of Sales and Marketing Alignment

Benefits of Sales and Marketing Alignment

Findings further stretches the belief that sales and marketing must work in tandem to shepherd leads and opportunities across the finish line. But what precisely is it about sales and marketing integration that helps drive better results?

Below are the seven greatest benefits of alignment and why they matter:

1. A Clearer Understanding of the Customer

Marketing and sales are charged with attracting, nurturing, and closing deals, so these two need to be on the same page about who they need to reach. It’s much easier to create accurate buyer profiles when the teams work as one.

Different stakeholders are usually involved in the decision at different points. Knowing who to engage and when is critical to developing a story thread that carries across all stakeholders from beginning to end, enabling a smooth handoff between marketing and sales. It also helps when both marketing and sales understand what is most likely to influence buyers at various stages of the process.

Plus, a clear and agreed-upon understanding of the customer promotes shared ownership of the customer experience. As a result, prospects are less likely to feel as though they are suffering the effects of a siloed organization that manifests in a fragmented, confusing engagement. In fact, 70% of the respondents from research said sales and marketing collaboration delivers a better buying experience for the customer rather than in isolation.

2. More Feedback from Customers

Both marketing and sales gather relevant knowledge about prospects as they interact with and observe them on their buying journeys. Also, shared customer intelligence paves the way for higher conversion and win rates. Hence the need to take feedback from customers serious in driving sales.

By sharing these insights about behaviors, preferences, interests, pains, and even opinions, both teams are positioned to better identify and engage the most promising potential customers. In fact, the more detailed the lead record, the more accurately the sales team can route leads – and the less time they spend trying to figure out which ones to prioritize.

3. Better Implementation of Customer Feedback

When marketing and sales work collaboratively, they are more likely to respect and respond to shared knowledge. Moreover, there’s a higher chance they’ve made it a priority to integrate their systems to share customer data. Enhanced access to customer data makes it easier for the right people to act when needed.

4. Better Support from Business Leaders

When the executive team sees the commitment from marketing and sales to coordinate their efforts, they will be motivated to help ensure the success of their alignment. This support alone can extend to everything from clear, ongoing communication about the importance of collaboration, to the dedication of resources to ensure and maintain it. Examples include initiatives to break down departmental silos, such as integrating all necessary tools and even modifying compensation plans to accurately reflect and reward the combined efforts.

5. Better Engagement Between Sales and Marketing

When marketing and sales work separately, each team executes its own activities without paying much attention to the other. This leads to redundant efforts and sometimes, confusing experiences for prospects. It also makes it extremely difficult to pinpoint where exactly leads drop off along the customer journey.

On the other hand, when the two teams interact and brainstorm regularly, they can join forces to amplify the impacts of their efforts. Working together as a well-oiled machine, marketing and sales can launch campaigns designed for maximum impact, handle leads fluidly, and engage prospects in a way that wows potential buyers. Moreover, marketing and sales can respond with agility when market dynamics shift because of the synergy between the two groups.

6. A More Well-Defined Strategy

Organizations with aligned sales and marketing functions tend to be strategic and big-picture oriented. In other words, they get the long-term value. By planning for, promoting, and enabling alignment, the company amplifies the impact of both marketing and sales activities.

When sales and marketing rally around a big-picture view of how to generate revenue, they can work together to form and launch campaigns aimed at achieving that goal. Then, they can harness the wealth of insights and efficiencies yielded by this alignment to further refine and improve a high-level business strategy for growth.

7. Clearer Mapping of the Customer Journey

One of the biggest hurdles for B2B organizations is shedding their inside-out perspective to understand the purchase process from the buyer’s point of view. This is especially critical for any organizations adopting an account-based approach. Sales marketing alignment gets rid of the artificial funnel division between marketing and sales, and instead leads to a holistic view of the buyer journey from start to finish.

This mapping provides a much more realistic understanding of the prospect’s experience, reducing the risk of making the wrong assumptions about who is involved and in what ways from the buyer’s side. With an accurate view of the customer journey, marketing and sales can more confidently define and execute campaigns designed to trigger and increase engagement.

 

EXCERPT: LinkedIn Sales and Marketing Solutions

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The Hot Formular for Increasing Customer Acquisition

The Hot Formular for Increasing Customer Acquisition
  • The methods for increasing customer acquisition for any firm/organization are listed below;

AIDA: It is an acronym for ATTENTION, INTERESTDESIRE and ACTION that is designed to capture the process that firms/organizations go through to reach prospective buyers to sell their products and services.

  • STEP 1: ATTENTION: This is the first step in making good sales for your products/services, Introduce yourself or your company in a way that will attract the prospect attention. The introduction must be in a professional way and lack foul languages.
  • OBSERVATION: Rate the customer/prospect by appearance, posture, location, car, disposition e.t.c in a way that you could easily know the category a customer falls to, say High class, Average or Low class customer. It helps in building effective strategies in satisfying all the customers. Observing the customer is therefore an important process any sales agent/marketing personnel must take into consideration.

 

  • STEP 2INTEREST: Demonstrate the products /services convincingly by pointing out the benefits and features in line with your observation that will best suite the need of the prospect
  • Do not be in haste to mention the price or the name of your product. Talk more about the benefits of the products rather than the features.
  • Say something to arouse questioning and curiosity by the prospect that is, offer them value for their money. Make them understand why they won’t waste their money purchasing your product/service.

 

  • STEP 3DESIRE: Make an obvious statement and mention the product and price to the prospect. A good salesman must be able to arouse a burning desire making the prospect to try the product/service out.

 

  • STEP 4ACTION: Make a statement to prompt him to be eager to offer money immediately and close the deal.

Thank the prospect , verbally and physically.

Incase the prospect fails to buy, do not give up on the prospect until they become customer by being creative and innovative in your next presentation, learn to offer  more value and Money Back Guarantee. Offer free Samples, Free Demonstration, Discount, Instant reward, Special Promo etc.

 

Compiled by : Ayanleye Samuel Oluwafemi (Mr Packaging)

 

EXCERPTS: GMD FORMAZIONE BUSINESS SCHOOL

Benefits of Sales and Marketing Alignment

Findings further stretches the belief that sales and marketing must work in tandem to shepherd leads and opportunities across the finish line. But what precisely is it about sales and marketing integration that helps drive better results?

Below are the seven greatest benefits of alignment and why they matter:

1. A Clearer Understanding of the Customer

Marketing and sales are charged with attracting, nurturing, and closing deals, so these two need to be on the same page about who they need to reach. It’s much easier to create accurate buyer profiles when the teams work as one.

Different stakeholders are usually involved in the decision at different points. Knowing who to engage and when is critical to developing a story thread that carries across all stakeholders from beginning to end, enabling a smooth handoff between marketing and sales. It also helps when both marketing and sales understand what is most likely to influence buyers at various stages of the process.

Plus, a clear and agreed-upon understanding of the customer promotes shared ownership of the customer experience. As a result, prospects are less likely to feel as though they are suffering the effects of a siloed organization that manifests in a fragmented, confusing engagement. In fact, 70% of the respondents from research said sales and marketing collaboration delivers a better buying experience for the customer rather than in isolation.

2. More Feedback from Customers

Both marketing and sales gather relevant knowledge about prospects as they interact with and observe them on their buying journeys. Also, shared customer intelligence paves the way for higher conversion and win rates. Hence the need to take feedback from customers serious in driving sales.

By sharing these insights about behaviors, preferences, interests, pains, and even opinions, both teams are positioned to better identify and engage the most promising potential customers. In fact, the more detailed the lead record, the more accurately the sales team can route leads – and the less time they spend trying to figure out which ones to prioritize.

3. Better Implementation of Customer Feedback

When marketing and sales work collaboratively, they are more likely to respect and respond to shared knowledge. Moreover, there’s a higher chance they’ve made it a priority to integrate their systems to share customer data. Enhanced access to customer data makes it easier for the right people to act when needed.

4. Better Support from Business Leaders

When the executive team sees the commitment from marketing and sales to coordinate their efforts, they will be motivated to help ensure the success of their alignment. This support alone can extend to everything from clear, ongoing communication about the importance of collaboration, to the dedication of resources to ensure and maintain it. Examples include initiatives to break down departmental silos, such as integrating all necessary tools and even modifying compensation plans to accurately reflect and reward the combined efforts.

5. Better Engagement Between Sales and Marketing

When marketing and sales work separately, each team executes its own activities without paying much attention to the other. This leads to redundant efforts and sometimes, confusing experiences for prospects. It also makes it extremely difficult to pinpoint where exactly leads drop off along the customer journey.

On the other hand, when the two teams interact and brainstorm regularly, they can join forces to amplify the impacts of their efforts. Working together as a well-oiled machine, marketing and sales can launch campaigns designed for maximum impact, handle leads fluidly, and engage prospects in a way that wows potential buyers. Moreover, marketing and sales can respond with agility when market dynamics shift because of the synergy between the two groups.

6. A More Well-Defined Strategy

Organizations with aligned sales and marketing functions tend to be strategic and big-picture oriented. In other words, they get the long-term value. By planning for, promoting, and enabling alignment, the company amplifies the impact of both marketing and sales activities.

When sales and marketing rally around a big-picture view of how to generate revenue, they can work together to form and launch campaigns aimed at achieving that goal. Then, they can harness the wealth of insights and efficiencies yielded by this alignment to further refine and improve a high-level business strategy for growth.

7. Clearer Mapping of the Customer Journey

One of the biggest hurdles for B2B organizations is shedding their inside-out perspective to understand the purchase process from the buyer’s point of view. This is especially critical for any organizations adopting an account-based approach. Sales marketing alignment gets rid of the artificial funnel division between marketing and sales, and instead leads to a holistic view of the buyer journey from start to finish.

This mapping provides a much more realistic understanding of the prospect’s experience, reducing the risk of making the wrong assumptions about who is involved and in what ways from the buyer’s side. With an accurate view of the customer journey, marketing and sales can more confidently define and execute campaigns designed to trigger and increase engagement.

 

EXCERPT: LinkedIn Sales and Marketing Solutions

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Five Ingredients To Sales Success

Five Ingredients To Sales Success

A good seller must possess the charisma that should make people want to listen to him; he must make them to develop enough interest, which will arouse a burning desire that can only be satisfied with action. Then at this point, sale is said to be closed.

Be sensitive to the body language of your prospects, verbal response may be deceptive but body language cant be wrong. It reveals the true feelings of people. Listen with your eyes and not with your ears alone.

 

  • 7% of customers’ messages come in words
  • 38% of customer’s messages come in his tone of voice
  • 55% of customer’s messages are conveyed by their body laanguage, hence the need to pay attention to the customer/prospect body language.

 

*Their messages are transmitted largely by the way they move and the things they do with their hands, faces and eyes; if you are observant and catch the movement.

 

  • YOU MUST UNDERSTAND THE SELLING PROCESS AND HOW TO DEAL WITH NEGATIVE FEELINGS: The first step to sales success is to understand the selling process of your product, you must know what to do per time, what to say when you meet a new prospect and how to react in any sales situation. My experience as a marketing personnel with Wemove technologies limited in lagos has taught me that to be a good marketer/sales personnel, you must know the process of selling out your company and dealing with negative situations. It is pertinent to know how to deal with negative situations, some prospects will reject you, annoy you but do not give up on them, any prospect can turn to buyerLEARN TO BE PATIENT AND DEAL ACCORDINGLY.

 

  • YOU MUST UNDERSTAND PEOPLE WELL ENOUGH TO INFLUENCE THEM TO BUYKnow your prospects well enough in order to make them to buy your product, A good sales personnel must be able to read the prospect personality types, buying patterns, know what they are not saying in the course of introducing your business. Know the type of prospect you are a dealing with, you need to convince them well enough about your product/service, offer them value for their money. Understanding that personality differs will help to drive sales as you will know to deal with different personalities.

 

 

  • YOU MUST KNOW HOW TO EXECUTE: You must put all trainings into action. You must be able to risk rejection and failure. As a marketing personnel in lagos, I turned many rigid prospects into loving the company I work for simply because of taking the risk of spending time with them to convince them. You must be a risk taker if you are to be successful in marketing your product/service. Do not forget the rule, you can turn any prospect to customer only if you are good at taking risk and executing project effectively.

 

  • YOU MUST BE STREET SMARTS: Being street smart does not mean a lout or thug as the case may be but it means you must be intelligent enough to observe and interact with people before they can give you the audience you need. Present yourself to prospects by the kind of questions you ask and by the sense of timing. A lot of prospects want you to take the bold step before they give you their time. Street smartness may help you in closing sales only if you can try it out.

 

 

  • YOU MUST CARRY OUT ALL THE DETAILS OF YOUR STRATEGY ALL DAY,EVERY DAYSuccess in life requires consistency and diligence. Do all you need daily to implement your goals. You must devise strategies to drive sales through critical thinking, researching and observation of the market, then work on your strategies all day to get positive results. Only those who understands the principle of DOGGEDNESS and DILIGENCE make it big as a sales person (CEO, Packagingstores).

 

Compiled By: Ayanleye Samuel Oluwafemi (CEO, Packagingstores)

Excerpts : GMD FORMAZIONE BUSINESS SCHOOL

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Why Linkedin Should Be Part Of Your Content Strategy

Why Linkedin Should Be Part Of Your Content Strategy

Almost everyone seems to understand what content marketing is. But content strategy? Not so much know that.

We continue to see a great disconnect around content marketing strategy and what it means. While some folks don’t think it exists, others define it in their own unique ways.

But very few organisations have a definitive grasp of the concept, helping to explain why only 38 percent of respondents surveyed for CMI’s Content Marketing in the UK 2018 report indicated they have documented one in place.

A content marketing strategy as earlier described, “revolves around the carefully considered exchange of valuable content for valuable engagement, with a commitment to identifying and measuring that value.”

Under this interpretation, or any other really, LinkedIn needs to play a major tactical role in the content strategies for today’s B2B companies.

 

LinkedIn and Content Strategy

The dictionary defines strategy as “a plan of action or policy which is designed to achieve a major or overall aim.” According to the aforementioned report from Content Marketing Institute, LinkedIn was named as the No. 1 social media channel for helping organizations achieve specific objectives.

Here are seven reasons why LinkedIn is essential to a strategic, objective-based content marketing approach:

Targeted Reach
LinkedIn hosts a community of more than 546 million professionals and individuals around the globe. No matter who your B2B customers are and your target customers, they are almost certainly on the platform. And with the depth of filters and targeting parameters on the platform, you can orient campaigns, your ability to refine the scope of your messaging is unequaled.

Context and Relevance
An effective content strategy isn’t just about reaching the right people — it’s about reaching them in the right context. This can be a major challenge for B2B marketers operating in the social space, because typically people aren’t seeking out professional content while leisurely scrolling through their personal feeds. But on LinkedIn, discovering useful professional content is the reason many members log in.

The emphasis here is on being “useful,” but ultimately LinkedIn is almost always a superior setting for reaching buyers and decision-makers in a relevant way. This helps explain why the platform drives 80% of B2B social media leads.

When it comes to demonstrating thought leadership, LinkedIn is one of your best bets for gaining authority in your niche, with a large number of engaged executives, influencers, and others serious about honing their skills and learning new things.
Versatility
Today’s content marketing strategies need to include different forms of material, ranging from written posts to infographics to videos and beyond. Organic and paid reach should each play its part. You can easily incorporate all of these different styles into your content mix on LinkedIn, especially now that native video functionality has arrived.

As visual content marketing becomes more integral for driving social engagement, B2B video in particular is an area of prime opportunity for strategic marketers on LinkedIn to drive sales and ensure engagement.

 

Research
The single biggest priority for B2B marketers is gaining an ample understanding of customers and prospects. This isn’t a new development in any way, but as buyers become conditioned to expect increasingly tailored and customised experiences, the stakes are rising all the time.

The majority of professionals and businesses are represented on LinkedIn. Simply scanning content feeds and surveying the insights companies and their employees share on their profiles can be extremely informative. Becoming active in LinkedIn Groups relevant to your vertical is another great way to interact with and learn from people in your field.

Inbound Influx
The fundamental idea behind content creation is to gain visibility and attract users to your brand gradually. There are plenty of components in that equation, of course, but LinkedIn ought to be one of them. When you and your company are active on the platform, prospective customers are more likely to find you, especially if you’re frequently discussing subjects of pertinence.

Specifically, the LinkedIn Company Page is a vital consideration. It will usually appear near the top of search results when someone Googles your organisation, and also ties to the profiles of all your employees on the network. Don’t make the mistake of overlooking it as part of your content strategy.

 

Relationship-Building
Content marketing strategy is all about the long-term view. Sure, running one-off ads and campaigns can be valuable, but nothing compares to the importance of building authentic, sturdy professional relationships outside your own walls. LinkedIn is your conduit to prospects, colleagues, peers, influencers, and business leaders around the world.

Keep tabs on them by following their activities and stay on their radars by occasionally commenting on updates, sharing content they may find interesting, and even reaching out via instant messaging on LinkedIn when appropriate.

 

 

Measurement
One of the most crucial elements of a marketing strategy is ongoing measurement and optimisation. No matter which tactics you’re using, you can almost always improve on them. Through LinkedIn you’re able to access a wealth of analytical tools that helps to track who is interacting with your content and how. Test different images, headlines, copy, and more to finetune your approach with data and keep things moving forward.

Excerpts : LinkedIn Marketing Solutions

Compiled by : Ayanleye Samuel Oluwafemi (CEO, Packagingstores)

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Five Deadly Sins Of Selling

Five Deadly Sins Of Selling

Selling your product/service might be worrisome but with effective strategies, you can be guaranteed of increased Return on Investment (ROI).

Any business that wants to flourish in the market must be Customer-Oriented which is the new formula for penetrating the market.

There are certain sins that affect selling, sin here is not in terms of commiting fornication or adultery as in Christian faith but the don’t that affects selling of product/service.

 

Below are the five deadly sins of selling;

 

  1. IGNORING PEOPLE DURING YOUR PRESENTATION: Treat everyone equally and with equal interest during your presentation, ignoring some sets of prospects during your presentation will reduce the effectiveness. Carry everyone along during your presentation as this can help you, DO NOT FORGET THE RULE, ANYBODY CAN TURN INTO YOUR CUSTOMER IN BUSINESS.

 

  1. DOING ALL THE TALKING: Doing all the talking is one of the mistakes that marketers most often times flout, when presenting your product/service, give room/space for your customer/prospect to talk as this alone gives them sense of belonging and confidence that they can do business with you. Getting customer feedback helps to build inventory and thus helps the company improve in areas of lacking. Doing all the talking will spoil the show for you.
  2. RAMBLING OR CONTINUALLY REPEATING YOURSELF: Don’t take forever to make your point. Once you have made it ,be quiet and let the prospect respond. Avoid repetition during your presentation, convince the prospect/customers that you know what you are saying. Repetition to them may signify CONFUSION. So, Avoid it.
  3. BOASTING ABOUT YOUR OWN PERSONAL ACHIEVEMENT: During your presentation, circumvent bragging about your personal achievements.  Don’t brag let the prospect judge for themselves. Remember you are dealing with different personality types hence the need to be careful during your presentation. As a marketer in lagos, I noticed that most customers/prospects do not like marketers who brag too much about their product/service as they always like judging by themselves.
  4. SAYING SOMETHING THE PROSPECT MAY FIND OFFENSIVE: Using off-colour languages or ethnic jokes can have the same effect. Do not use offensive languages when convincing customers to buy.

 

Compiled By: Ayanleye Samuel Oluwafemi (CEO, Packagingstores)

Excerpts: : GMD FORMAZIONE BUSINESS SCHOOL

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Referral Marketing, your best marketing strategy.

Referral Marketing, your best marketing strategy.

Referral marketing is a form of marketing that taps into the reach of your customers, associates, employees to incentivize them to advocate for your brand by referring their friends, family and professional network. By offering attractive rewards and a variety of automated and scalable referral sharing methods, you open the doors up to new would-be customers by extending the trust that current customers, partners and employees have for your brand to include their personal and professional network.

Customers, associates, and employees like to feel that these promotion efforts are appreciated. Referrals increases engagement and participation, making it the perfect recipe for getting them to refer your brand. Referrals tend to be a much more targeted initiative because those referring know their audience well, which in return allows your brand message to spread more effectively.

Bottom line – referral marketing has the potential to be your most powerful marketing tool when implemented effectively.

Why Referral Marketing?

Don’t believe referral marketing can be applied to your business? Think again. Here are some numbers that will have your customers referring away:

  • Prospects are 400% more likely to buy a product recommended by someone they know. (Source: Nielsen)

 

  • 53% of B2B companies are planning to invest in technology to support customer advocacy efforts in the next 12 months. This is a critical area where technology helps companies get the scale they need to extend the essential contribution of their customer advocates in the market. (Source: SiriusDecisions)

 

  • 74% of consumers identify word-of- mouth as a key influencer in their purchasing decision. (Source: Ogilvy, Google, and TNS)

 

  • A referred customer is 18% more loyal than a customer acquired through a different method, spends 13.2% more than a non-referred customer and has a 16% higher lifetime value. (Source: Harvard Business Review)

 

 

  • Over 50% of people are likely to give a referral if offered a direct incentive, social recognition, or access to an exclusive loyalty program. (Source: The B2B Marketing Mentor)

 

  • People trust their friend, family and professional network’s opinions. 82% of U.S. consumers trust recommendations from people they know. (Source: Nielsen)

 

 

  • Leads generated from referrals convert 4X better than marketing leads. (Source: emarketer)

How do I implement referral marketing?

These figures demonstrate referral marketing’s potential to deliver amazing results when implemented effectively. From a B2C referral program that has customers referring friends and family for increased loyalty, to a B2B referral program that empowers customers and partners to increase quality lead generation and ROI, using referral marketing programs are a great way to add a powerful marketing initiative to your business.

Another key factor in any successful referral program is the ability to deliver incentives immediately. By automating and scaling referrals to avoid breakage in attribution and distribution of rewards to referring customers, partners, and employees it increases engagement and participation in referral marketing programs. With digitally automated and instantaneous rewards, customers have the satisfaction of receiving digital rewards in real time.

And while we have seen examples of companies who successfully made their own referral program, here are some business that have excelled at developing solid generalized advocacy, referral, and review platforms that work: AmbassadorAmplifinityExtoleFriendbuyInfluitiveReferral Rock and Referral SaaSquatch.

For most companies, referrals are the most cost-effective way to acquire new clients. Fearless Referrals, by Matt Anderson, cites a study by Sandler Sales Institute regarding how frequently different types of prospecting activities turned into business, about 80% was given to a case when you are personally introduced to a prospect—referral marketing!

OK, now we know that referrals are far more likely to turn into revenue than other prospect sources. But what makes a referral better?

  1. Transferred Trust: The first step to buying is for the buyer to trust the seller. It is very difficult to establish this trust with a cold lead. A referred lead is better because your service was referred to them by someone they already trust. Therefore, this trust is transferred from the referral source to you!
  2. Shorter Sales Cycle: Transferred trust will naturally shorten the sales cycle for a referred lead compared to a cold lead.
  3. Less Price Sensitivity: Referred clients are less sensitive about price. Because risk is reduced in the mind of the prospect, they can focus more on value of your product or service and less on price.
  4. Customized Offering: You can be more effective presenting your product or service to a referred prospect because you will generally have more background knowledge about them from the referrer. You can therefore customize the presentation of your product or services to address their specific needs and/or pain points.

Compiled by : Ayanleye Samuel Oluwafemi (CEO, Packagingstores)

Excerpts : LinkedIn Marketing Solutions