According to a study of channel executives by the Chief Marketing Officer Council, customer referrals were ranked as 4x more powerful and valuable than email or direct marketing campaigns. They were also ranked nearly 7x more likely to result in sales and new business than leads derived via the Internet.
But do you know what % of your revenue comes from referrals?
Many sales and marketing executives admit that they do not track or optimize referral leads the way that they track their other paid efforts. If referrals have proven to be a high-quality lead source, though, they should be at the top of the list to optimize to increase your total ROI.
With other sales and marketing tactics, such as email, direct mail, events, etc. campaign efforts are tracked – how much was spent, what activity did it drive, how many leads were converted, and what was the total ROI. Teams then use this data to dive into opportunities to optimize the programs – of the leads that converted, what audiences were most receptive to target in future campaigns? What opportunities are there to broaden the reach?
When it comes to customer referrals, some teams track the source of the new business once it closes and attribute it to “referrals”, but there are no follow up efforts to evaluate business opportunities to drive that channel.
When driving new business, ALL lead sources should be accounted for, tracked and optimized for a solid strategy moving forward.
Auctio is a new kind of marketing automation tool that focuses solely on this untapped channel. And like other sales and marketing tactics, you can deploy tools to initiate referral programs that increase your reach and track activity to optimize where your biggest sources of leads are coming from and what incentive programs deliver the best ROI.