Word of mouth referrals have always been a successful form of advertisement; when someone likes a product or service, they tend to spread the news with others. However, the likelihood of them telling EVERYONE they know is slim to none. A 2010 study concluded that while 83% of consumers were willing to refer others to a brand, only 29% actually followed through. Why? Because it took more time and effort than they were willing to give. CloudSponge has made it easier for customers to share with those in their online circles by integrating contact importing; the ability to access the customer’s email address book in order for them to select who to contact, all without ever typing in an address.
Why have a referral program with contact importing on your site when typing in an email address seems like the easiest task around? There are three simple reasons:
1. It’s EASY, for you and your customers
Integration is as simple as copying and pasting a code into your website, and it takes under 10 minutes to finalize the process. CloudSponge automatically works with all popular webmail services and desktop address books, so everyone is covered.
Integration is as simple as copying and pasting a code into your website, and it takes under 10 minutes to finalize the process. CloudSponge automatically works with all popular webmail services and desktop address books, so everyone is covered.
Integrated referral programs eliminate work for the consumer. By gaining access to customers’ address books, they can refer the product without having to type out all the addresses. Having a referral program on your website means that as soon as the customer converts, it’s easy to get them to refer their contacts while their positive experience is still fresh in their mind.
2. It’s TRUSTED
While only 40% of consumers say that they trust regular advertisements, 92% trust word of mouth referrals, and 90% report that the leading influence behind their purchases are WOM recommendations. Furthermore, consumers are more inclined to purchase from a new business if someone they personally know referred it to them.
While only 40% of consumers say that they trust regular advertisements, 92% trust word of mouth referrals, and 90% report that the leading influence behind their purchases are WOM recommendations. Furthermore, consumers are more inclined to purchase from a new business if someone they personally know referred it to them.
3. It WILL increase short-term and long-term PROFIT
Referred customers are already more receptive to the products their peers recommended, and are therefore already one-step closer to purchasing. They spend on average 13.2% more than non-referred customers, and their lifetime value increases by 16%. This results in more revenue in the present, and brand loyalty in the future. Even a 5% increase in customer retention can increase success by 25%-95%.
Referred customers are already more receptive to the products their peers recommended, and are therefore already one-step closer to purchasing. They spend on average 13.2% more than non-referred customers, and their lifetime value increases by 16%. This results in more revenue in the present, and brand loyalty in the future. Even a 5% increase in customer retention can increase success by 25%-95%.
CloudSponge is easy for both you and your customers and it improves the most trusted form of advertisement. Integrating it into your referral program will yield both initial profit and brand loyalty for the future, and it will increase the profitability of your business.
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