Technology is trending, and as Marketers, we’re always keeping an eye out for the next big breakthrough (like referral programs) that will make our job easier. So when automated personalized marketing came onto the scene many thought it was that breakthrough. After all, personalized marketing has made amazing strides in the past few years and automated personalization has become a highly adopted best practice for both B2Bs and B2Cs. This is often employed through an automated software like marketing automation, which crafts individual messages in an attempt to create a customer-centric approach. And for a while, this form of personalized marketing was the ultimate way for Marketers to create a targeted strategy. But as we know, when a channel or tactic becomes highly adopted its effectiveness begins to wane as it becomes increasingly crowded and noisy.
In fact, as of recently, “The majority of marketing leaders report dissatisfaction with results from Marketing Automation. Frost & Sullivan reveals 75% not accomplishing what they expected,” (Root Causes of Marketing Automation Failures).
This is not a surprise. After all, just in one day I receive an average of 30-50 personalized automated emails in my personal email account and 10-15 in my work email.
So what do I do? I click check all and delete. Whether it’s 50 consumer emails or 15 B2B emails, ask yourself, would you really take the time to sort through them all to determine if one offers you value.
The reality of the situation is, that even for the 15 B2Bs that are sending automated personalized emails to my business account, I’m very unlikely to open them. I have deadlines to meet and despite if I know the business, I haven’t developed any personal relationships with them so in my mind they can’t be sending me anything that will fulfill some unfulfilled need because they don’t know me well enough.
The same can be said for prospecting emails. I’m sure you’ve experienced someone who has stalked your LinkedIn or Twitter profile to piece together your work email and send you their solution to all your problems. Or it might be your job to send those emails. And while you or one of your prospect may click on them once in a while, they mostly end up in the same place – the trash. But this doesn’t mean that the sender of those emails are doing anything wrong, it’s just the nature of prospecting today.
And although the success rate of automated personalized emails and prospecting emails has declined, I’m not saying that you should abandon these marketing efforts, just that you can’t rely on them to generate high quantities of quality leads anymore. While you’re headed down the right path with personalization and the attempt to create a customer-centric approach, these approaches are missing a vital component to succeed today – the relationship.
How referral tracking programs succeed in high quality lead generation
Referral tracking programs are that next big breakthrough for Marketers. Referral programs employ a relationship-focused sales approach in a strategic customer-centric way. Referral tracking programs harness the power of your current customers, partners, and employees’ relationships with their network and incentivizes them to provide you with a warm and trusted introduction. These advocates already have an established relationship with the customer demographic that you hope to capture, and because of that, they’re referral of you is more powerful than any unsolicited prospecting email or automated personalized email.
Referral tracking programs offer automation and clear ROI while employing all-inclusive sharing options that attribute advocate referrals and measures each advocates individual success to optimize your nurturing strategy and get the most return on investment.
In fact, referral programs:
- Create a 4X higher conversion rate than typical marketing channels (emarketer)
- Increase LTV by 16% compared to non-referred customers (Harvard Business Review)
- Decrease churn by 18% compared to non-referred customers (Harvard Business Review)
- Increase a leads likeliness to buy by 400% (Nielson)
But you don’t have to trust the numbers. Discover what your individual ROI and revenue would be with a referral tracking program by using the referral ROI calculator now!