Member Get Member: from loyalty to advocacy

What is it?

Member Get Member is a marketing activity that represents for companies a great source to acquire new prospects. It’s based on a mechanism that allows, registered users and their friends, to receive rewards for specific activities with the company.

The mechanism of the initiative is very simple: in most cases, companies send to their customers, through previously identified channels (eg emails, push notifications, sms, etc.), a so-called “friend code“. This code, infact, will be delivered by the customer to a friend (or groups of friends) who will use it on the website of the company promoter of the initiative and redeem his reward and this way, even the customer already registered will get an advantage that is generally represented by a % discount on future purchases.

Critical success factors

A successful Member Get Member program should be:

  • SPECIFICATION: The program must describe in detail the procedure to be followed both for the existing client and for the “friend”;
  • REALIZABLE: The program must provide for the assignment of prizes achievable. For example, “present 5 friends and immediately get 5% discount on your next purchase”;
  • RELEVANT: The program must provide an important reward for the customer and his friend. The incentive element is lost if the customer does not perceive any interest in what the program offers. It’s also necessary to continuously perform tests to make sure that the program is optimized and coherent for both the customer and the friend;
  • TIME-BOUND: Ensure a time limit is placed on any promotional offers to encourage fast response.

Features of a successful MGM program

In order for a company to promote an effective Member Get Member program, it should:

  1. Select the most loyal and interested customers of the product in order to involve them;
  2. Communicate correctly the procedure to follow in order to participate in the initiative;
  3. Encourage customers through rewards and value benefits;
  4. Check constantly the rewards that are offered.

It is, therefore, a very simple promotional initiative and its use has spread to large, but also small companies, of almost all product sectors. This solution can be implemented through the Domec Tools ™ platform, which is able to automate all the processes of the Member Get Member, allowing companies to reduce customer acquisition costs, activate and strengthen the level of engagement with customers and increase brand awareness.