Why Companies on Amazon Should Open Their Own Referral Marketing ChannelPosted by naxumadmin / May 12, 2023
Amazon has become a dominant force in online shopping, but the Amazon platform isn’t your only option to thrive. Companies should consider utilizing the power of referral marketing outside of Amazon to increase their brand awareness and optimize revenue per ambassador and member.
By opening their referral marketing channel, companies can track leading indicators such as attendance at webinars and what ambassadors share on social media to optimize their brand in the referral marketing space all while ‘owning’ the relationship between the company and the customer.
Utilize Viral Referral Marketing
While Amazon is a massive platform with millions of potential customers, it is limited in its ability to allow companies to build a community around their brand. By utilizing viral referral marketing, companies can leverage their customers’ networks and create a community of brand ambassadors. Making a referral marketing channel will increase their brand awareness and help optimize their revenue per ambassador. It’s important to understand the differences between Amazon and the referral marketing space.
One key difference on Amazon is the focus on product listings and competing on price. In contrast, the referral marketing space focuses on building a community of loyal customers passionate about the brand. Companies can then leverage their community to drive sales and increase revenue. Another difference is that Amazon is a transactional platform, whereas referral marketing is relationship-based.
Track Leading Indicators
To optimize their brand in the referral marketing space, companies should track leading indicators such as attendance at webinars, live streams, and what ambassadors share on social media. Third-generation referral marketing technology can track these metrics and offer the right data and insight into what works and what doesn’t for your brand. By understanding your company’s personal metrics, companies can make data-driven decisions to improve their referral marketing program.
Attendance at webinars and live streams is an excellent leading indicator of engagement and interest in the brand. If attendance is high, ambassadors are interested in learning more about the brand and are likelier to promote it to their networks. If attendance is low, it may indicate that the content could be more engaging or that the ambassadors need to be invested in the brand.
Social media sharing is another important leading indicator. Companies should encourage their ambassadors to share content on social media and track which posts get the most engagement. Using social media platforms will help members understand which specific type of content resonates best with their audience, making sure that companies can make the correct decisions at the right time.
Build a Strong Business Model
Companies must build a robust business model to succeed in referral marketing. Building a strong business model means using second and third-generation technology systems to track metrics and gain insights. It is also essential to work with outside parties to understand what the market wants and reframe how you make decisions when growing your brand.
Second-generation referral technology focused on tracking leading indicators but missed the data on ‘what’ was creating your leading indicators. Third-generation referral marketing technology goes beyond leading indicators and provides the right data to see the drivers of your company’s sales process. These systems allow companies to make data-driven decisions and optimize their referral marketing program over their peers.
Working with outside parties, such as marketing agencies and consultants, can also provide valuable insights into the market and help reframe how companies make decisions. Companies can get a fresh take on their marketing strategy and identify new growth opportunities by working with outside parties.
In conclusion, opening a referral marketing channel outside of Amazon is a powerful way for companies to increase brand awareness and optimize revenue per ambassador or member. By utilizing viral referral marketing, tracking leading indicators, and building a robust business model, companies can succeed in the referral marketing space and create a community of loyal customers passionate about their brand.