referrals

New Lead Generation Solution Delivers Referrals From Brand Advocates

If someone told you there was a shoebox full of hand-written highly qualified referral leads buried next to a tree in South Dakota, would you grab a shovel and venture to retrive them? Judging by the stats below, I'm sure every marketer and salesperson would be on the next flight to South Dakota cracking a bottle of champagne!

Facts about Lead Generation

  • Sixty percent of B2B marketers say generating leads is their top goal for 2012, followed closely by 57 percent who said “converting leads into paying customers” is their top priority (MarketingSherpa, “2011 B2B Marketing Benchmark Survey”).
  • The average cost per lead using traditional outbound marketing tactics (direct mail, trade shows, direct marketing) is $346, according to HubSpot’s 2012 State of Inbound Marketing.
  • In a recent survey by HubSpot, about 25 percent of marketers said referral leads were worth $1,000 per lead to their company and about 10 percent said referrals were worth more than $10,000.

Today, we've announced a new lead generation solution to help marketers and salespeople generate thousands of "free" referral leads from their own Brand Advocates and their social networks. 

Zuberance’s new "Advocate Referrals" solution is not a tell-a-friend tool or pay for referrals tactic. It’s a complete referral marketing solution that enables companies to systematically:

  •     Identify Advocates from among customers, Facebook fans, Twitter followers, website visitors, and more;
  •     Leverage Advocates to generate referral leads by making it easy for Advocates to create and/or share compelling content and offers with their social and business networks;
  •     Track and optimize results in real-time.

How it works:

 

The Zuberance Advocate Platform automatically tracks which Advocates are sharing content and offers with their social networks; how many referrals have been generated; and the conversion rate for these referrals. A/B testing enables marketers to compare and analyze what offers or content being shared by Advocates are generating the most referrals. The Zuberance Advocate Platform also enables marketers to automatically re-engage Advocates to spur more sharing and referrals.

“Referral leads are the Gold Standard of leads, the Glengarry leads. These are the leads that marketers need and salespeople crave,” said Rob Fuggetta, Zuberance Founder & CEO. “Zuberance’s Advocate Referrals delivers thousands of qualified referral leads into the sales funnel, boosting sales fast,” he stated.

To learn more, read the full press release here.

VIDEO: How Club One is Pumping Up Referral Leads and Sales

Club One, an award-winning health club management company based in San Francisco, is boosting its referral leads and sales by activating its Zuberance-powered Brand Advocates. In this new 60-second video, Club One Director of Marketing & PR Kari Bedgood shares how Club One is getting more memberships and amplifying positive Word of Mouth.

Some key results from Club One's advocacy program:

  • 61% of members surveyed identified themselves as Club One Advocates.
  • 50% of Club One Advocates shared offers (a 14-day pass) with their friends and colleagues via email, Facebook, and Twitter.
  • Club One received a 9X ROI from the program based on membership revenues.

Download the Club One Case Study now.

How Much Money are You Losing by Not Activating Word of Mouth?

Many companies get more than half of their business from Word of Mouth (WOM.) How much money do companies lose when they wait to harness the power of WOM? Here's an example from the fitness industry. As the chart shows, this fitness club is losing $1.2 million in revenues by not energizing its highly-satisfied customers to spread positive WOM and generate referral leads.

This is actually a very conservative estimate on how much companies may be losing by not activating WOM, considering (again, using the fitness industry example):

  1. Many fitness companies generate much more than $1,200 per year per member. On average, each member at a higher-end fitness club may be spending about $5,000 per year.
  2. This estimate doesn't take into consideration the lifetime value of each member acquired via a WOM referral. If the average tenure of a member at a higher-end club is five years, the value of each customer acquired via WOM referrals is actually $25,000 (5 years x $5,000.)
  3. The estimate below is for a single member only. Family memberships are also from WOM referrals.

To calculate the value of energizing your Brand Advocates, download our "What's a Brand Advocate Worth?" whitepaper.

To learn how fitness chains can yield a 9X ROI by leveraging Word of Mouth, download the Club One Fitness case study.

-Rob Fuggetta, Founder/CEO, Zuberance

The Triangle of Trust: A balancing act for brands, Advocates and prospects

In a perfect world, what would you like to have your company’s Brand Advocates (the people who proactively recommend your brand or product without being paid to do) do for your business? Perhaps having your loyal customers share an exclusive offer with their friends and colleagues on Facebook, via email or on Twitter would move the needle? Maybe you would like additional reviews of your products on Amazon, Best Buy, or a higher star rating on Yelp to get more feet in the door? At the critical time of purchase, would having Advocates answer prospects questions help convert the sale?

According to Nielsen, 92% of customers trust Word of Mouth, and more than 90% of customers say that a Word of Mouth recommendation is the leading influence on their purchase decisions (source: Zocalo Group).

So, how do you tap into the power of Word of Mouth to connect your prospects and Brand Advocates?

Look to the Triangle of Trust – with Brand Advocates on one angle, prospects on the other, and your company on the third.

All three are connected (and communicating with each other), and everyone provides equal value in terms of rewards, recommendations and eventually revenue. When one side is out of balance and unconnected, the triangle falls apart.

An Example: Keeping it Balanced

Word of Mouth referrals are the #1 source of Club One’s, a nationally recognized leader in the fitness industry, memberships (at 45%), far surpassing other lead generation tactics – and they were not leveraging the power of Word of Mouth in a systematic way. In other words, Club One’s Triangle of Trust was missing a strong link from Advocates to prospects.

To bring their triangle back into balance, Club One Advocates (identified by using the Zuberance Advocate Platform) shared a complimentary 14-day guest membership with their social networks, which resulted in:

  • 2,154 prospect clicks
  • Just under 1,000 people took the trial offer
  • about a 100 signed up for a long term new membership
  • 9X Return On Advocacy (as measured by media and sales value)

These brand evangelists wanted to spread the word about Club One to prospects, and the company made it possible – which turned into a win-win for everyone.  Watch Club One’s Kari Bedgood talk about why it was so important to connect Advocates and prospects here.

Read the full Club One case study here.

Companies who connect with their Brand Advocates (who in turn evangelize their products and services to potential prospects) are tapping into a volunteer sales force with tremendous potential (and sustainability). In fact, there are over 60 million Brand Advocates in the US, and over 1 billion worldwide.

Above all else, nurture your customer relationships – remember, they are likely your most important source of leads.

So, how are you keeping your brand’s Triangle of Trust in balance?