Member get Member (MGM): How and why invest in this strategy?

Everyone has referred or bought something after a friend's recommendation: this thought is the basis for Member get Member (MGM), or Referral Marketing. In this strategy the customer's satisfaction is always used as a lure for him to refer the brand to other people, who may become customers as well.

How it works and how to implement the strategy

First you need to understand that referral is part of a strategy, and it will come through the quality of your product, or service, along with the advantages your customer will receive by making a referral. How is it possible to do this? 

Ensure customer satisfaction, after all we tend to refer positive experiences, just as we complain about negative ones. Also offer gifts, coupons, and discounts as rewards for referrals. In this way you transform a recurring behavior of the consumer into something advantageous for him. 

This makes the referral a benefit for the public and for the brand, which will receive new customers as a return on investment. Remembering that the sales, marketing, service, and support team need to be in sync for the best customer experience. 

For the best performance of the strategy you need to make sure that all interactions are as natural as possible, as well as relevant. 

What are the advantages of Member get Member? 

A customer happy with your product is the best brand marketing, so turning him into an ambassador for your brand can be advantageous, helping:

• Giving credibility to the product, or service;
• In increasing the new customer base;
• In building loyalty among existing customers.

For everything to work out well, you need to ensure satisfaction, which is only possible getting to know your client very wellThe only way to do this is to offer really useful advantages, so that the cycle of referrals and rewards continues. 

Uber, for example, offers discounts on the first trip, and also gives discounts when a customer refers a friend to the app. This way the platform gets a new customer by offering advantages for loyal customers and for those who receive referrals. 

Another interesting case to look at is Airbnb, which offers credits to new customers coming from referrals, and the friend who gave the referral receives an amount to use for accommodation whenever a referred person becomes a customer. 

About Indico

Indico is a Brazilian Martech company with an experience that has reached more than 150 million customers in 9 countries, that develops solutions to combine Loyalty and Innovation creating unique connections between consumers and brands.

We create solutions that boost relationships and transform results. 

Disruptive campaigns, programs and projects that connect ideas, innovation, data and technology to engage, delight and retain customers. We generate data-driven insights and new opportunities, developing the customer experience with the brand. 

Contact us to find out how we can create more loyalty for your brand and boost your results!

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