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Customer acquisition is the number one priority for marketers today, however it is also one of their biggest challenges. SEO and SEM are huge sources of traffic and revenue from a business standpoint. They nurture demand. Referral marketing is the third acquisition channel that builds loyalty and drives new, high value customers. Referral marketing creates demand and becomes progressively the preferred acquisition channel, but there is a long way to make it a huge success for your business. For some of the early adopters, referral is the secret sauce of their customer acquisition strategy as it can drive up to 40% new customers in a short period of time. This presentation will show you how two Montreal based companies –ViralNinjas and BeyondTheRack – partnered together to make it happen. Best practices, tips and a business case will be presented .
Citation preview
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Virality & eCommerce: BTR's vision
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Who we are?
Richard Cohene – Beyond The RackDirector of Marketing and Business [email protected]
Virginie de Malavois – ViralNinjasDirector of Sales [email protected]
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Beyond The Rack facts
• Private shopping clubs for men and women who want brand apparel, accessories, beauty and home deco at prices up to 80% off retail;
• 8 milllion members accross North America;• Among the top 3 Canadian fastest growing e-retailer;• Headquarter in Montreal
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• Launched in 2011• Headquarter in Montreal and office in San Francisco• 50 employees + 10 planned• Specialized in customer acquisition and engagement for
ecommerce and retailers
ViralNinjas Facts
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Market leader.
Social acquisition and engagement.
What is a referral program?
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Referral marketing is a process to increase word of mouth marketing by encouraging your customers and your contacts to talk as much as possible about your brand or your product.
The ultimate goal
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Leverage your existing
customers
• Your customers are your best ambassadors
• Acquire new customers by rewarding existing customers
• Consumers are rewarded for every referral
Why launch a referral program?
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Customer acquisition #1 priority
• Also marketers biggest challenges
• SEO and SEM: • #1 and #2 in terms of user acquisition• nurture demand
• Referral marketing:• #3 in terms of user acquisition • builds loyalty and drives new, high value
customers• creates demand
Why BTR values referral program?
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Referral: #1 acquisition channel with a 12x
ROI• Switch from an in-house solution to
ViralNinjas
• High expectations of referral program being a significant acquisition channel
• Need ressources to discover areas for improvement:• in the invitation process• measure the impact of incentives• monitor financial results
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The result.
Of all new shoppers are from Referral
channel
In registrations in comparison to
previous program
ROI from Referral channel
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Beyond The Rack: referral #1 acquisition
channel.
Goals Results
• Increase brand awareness
• Boost k-factor (viral coefficient)
• Gain new customers
• Decrease overall cost per customer acquired (CPA)
In six months:• 30,000+ broadcasters sent
3.1 million referrals to friends and family
• 130,000+ new registrations
• 500% lift in referral registrations
• Multiplied k-factor 3X!
• Decreased overall CPA by 25%
“One of ViralNinjas’ strengths is optimizing every conversion rate. The result is an amazing k-
factor.” Richard Cohene, Director of Marketing at Beyond
the Rack
How does it work?
VIRAL NINJAS CONFIDENTIAL+
Build Custom Applications
VIRAL NINJAS CONFIDENTIAL+
Access email address book
VIRAL NINJAS CONFIDENTIAL+
Invite Friends & Family
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Maximize Deliverability
Invitation selected
Already a member
VIRAL NINJAS CONFIDENTIAL+
Be rewarded when your friends make their first
purchase
VIRAL NINJAS CONFIDENTIAL+
Share on social
networks
How to make it successful?
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How to make your referral campaign
successful?
1. Product / Offer / Brand
2. Identify the viral loop
3. Minimize user friction
4. Incentivize along the way
5. Monitor & Optimize the viral loop
Q&A
