Marketing to businesses has always been the usual sophisticated ads campaign, or mind blowing creatives or copies. The place of these inputs can’t be undermined. While there are many digital marketing strategies to enhance brand visibility, approaching a traditional approach to acquisition and improving customer lifetime value is best done the old school way, via “word of mouth marketing”. In fact, one of the most underrated yet effective methods for scalable growth is the classic approach of word of mouth. This isn’t just a personal belief—marketing research consistently supports it. According to McKinsey, it was discovered that word-of-mouth marketing accounts for 20%-50% of all purchasing decisions. Turning satisfied customers into brand advocates is crucial for organic growth.
What is Brand Advocacy?
Brand advocacy is a simple term that refers to when you have happy customers who are not just happy alone but promote your product or services. These advocates act as passionate supporters of your brand, influencing the decisions of those around them. Having such advocates on your side can be a transformative advantage for your brand.
Benefits of Brand Advocacy
The significance of brand advocacy extends beyond merely gaining free publicity and cultivating loyal customers. It plays a crucial role in strengthening your brand and enhancing your marketing initiatives.
Brand advocacy programs are a vital means to improve relationships with your current customers while also broadening that base, this provides efficient and effective methods to scale marketing efforts, build trust, and expand brand visibility.”
Here are some key benefits that can contribute to business success:
- Positively influencing sales
- Entering new markets
- Reducing marketing costs
- Enhancing brand awareness
- Increasing customer engagement
- Accessing new market segments
- Cultivating customer loyalty
What is Advocacy Marketing?
Advocacy marketing occurs when loyal customers promote your brand without any financial compensation. Often referred to as advocate marketing or customer advocacy, it resembles word-of-mouth marketing and is one of the most powerful ways to connect with consumers. Individuals are much more inclined to make a purchase when they receive a personal recommendation from someone who supports your brand. This differs from ambassador or influencer marketing, as there are no formal contracts involved, and it typically does not involve payment, unlike influencer marketing.
Building a successful brand advocacy for online banking using referral programs
To cultivate a community of brand advocates, online banks must create effective referral programs that resonate with their digital customers. Referral programs are the same in all sectors, it involves providing a cash reward for anyone who tells someone about your business.
Image Source : Monzo referral bonus
Structuring Effective Referral Incentives
Referral programs are distinct based on what you’re offering. For online banks, making a successful referral program will require giving to your digital audience what they are interested in. There are various incentives to encourage referrals:
- Cash Rewards: Offering direct monetary rewards for successful referrals taps into immediate gratification.
- Loyalty Points: A points system encourages ongoing engagement and repeat referrals.
- Exclusive Perks: Access to premium services or early product releases can create a sense of belonging and appreciation.
These incentives are only examples, you should align with customer motivations and enhance the banking experience.
Encouraging Customers to Share Positive Experiences
To leverage word-of-mouth marketing, banks should motivate satisfied customers to share their experiences across different platforms. In today’s digital age, where social media is widely accessible, positive mentions from customers can significantly help attract new clients. For online banks, encouraging customers to share their positive reviews is crucial.
Adopting Testimonials and Customer Reviews
The power of testimonials and online reviews cannot be underestimated. Highlight authentic customer experiences to build credibility. Showcase these testimonials on websites and social media to establish trust and attract new customers.
Amplifying Word-of-Mouth Marketing on Social Media
Social media platforms as mentioned earlier are essential for enhancing word-of-mouth marketing efforts, allowing customers to share their positive experiences widely.
Creating Shareable Content for Social Media
As an online bank in the UK, it’s crucial to know your customers, but understanding them is just the beginning. You also need to provide content that is easily shareable. This involves developing engaging materials that encourage sharing, such as:
- Customer Success Stories : Compelling narratives that highlight positive experiences with the bank.
- Infographics : Visually appealing graphics that simplify banking information or outline referral benefits.
- Referral Program Promotions : Clear messaging about the advantages and rewards of the referral program.
- Humorous Content : In this century, humor and guerrilla marketing can be very effective. The key is to figure out how to create content that entertains your audience while still conveying your product message.
Measuring the Success of Your Referral Program
The impact of your referral programs is quite essential in putting together your strategy and optimizing it. Tracking the performance of your referral program is essential to understand its impact. Here are a few key metrics to track to improve your referral programs.
- Referral Rate: Measure how many customers are referring to others.
- Customer Acquisition Cost (CAC): Analyze the cost-effectiveness of your referral strategies.
- Lifetime Value of Referred Customers: Assess the long-term value provided by customers acquired through referrals.
By keeping an eye on these metrics, banks can refine their referral strategies.
Conclusion
Building a referral program that transforms satisfied customers into brand advocates is vital for driving organic growth in online banking. Leveraging word-of-mouth marketing and authentic customer experiences can create a loyal customer base that contributes to sustainable growth.
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