Creating Brand Advocates
With many consumers expecting from their provider, how do businesses within tough industries like the finance sector attract new consumers and keep them loyal?
M&S for business decided to carry out some Insight research with the aim of discovering what makes a successful customer acquisition and retention strategy. While it’s all well and good acquiring customers if you have an attractive offering, retaining those customers is equally as key for a successful business.
The next step from turning your customer from merely loyal to the brand is to really impress them in order for the customer to become a brand advocate. Derek Singleton of Software Advice, describes brand advocates as “satisfied customers who enjoy spreading your brand’s message and helping current or potential customers”.
One of the most successful ways companies are creating brand advocates is by introducing ‘refer a friend’ schemes into their services. These schemes reward existing customers for becoming brand advocates, telling their peers about the company’s great services and getting them to sign up. Many companies have already adopted this strategy, for example, Simply Business offer existing customers a cash incentive of £25 for themselves and the person they refer. Rewarding both the new and existing customer helps to build relationships at both ends of the spectrum.
Carrot Car Insurance is one of the companies that attracts new customers through their own ‘Refer-a-Friend Rewards Scheme’. It works by customers referring friends via a unique Facebook app. Once their friend purchases an insurance policy with the company for the first time, the existing customer will get a £40 reward. The number of friends that can be referred is unlimited.
Through this friendship scheme, it makes the customer feel like part of the team and essentially turns your customers into your own sales and marketing team, saving your business money. This reward will make them feel valued and less likely to switch away from your company. An incentive is strongly recommended for those that want their customers to naturally become brand advocates to encourage and appreciate the customers the company have already achieved.
M&S for business offer ‘Insurance Replacement’, where insurance companies can offer the incentive of M&S gift cards to claimants and provide extra value to the company. For more information on Insurance Replacement, please feel free to get in touch with us.