Referral Systems (MGM - Member Get Member)
10 min.
Executive Summary
Nothing sells better than a friend's recommendation. MGM systems allow for scaling with a low Customer Acquisition Cost (CAC) because you only reward for actual results (a new customer acquired), leveraging the trust the brand has already built.
Marketing Concept
MGM activates loyal users and gives them a reason to be proud of the brand community. This results in acquiring higher-quality customers (higher retention and LTV) compared to cold traffic.
Target Group
- Model: B2C and B2B.
- Industries: Finance, Telco, SaaS, Subscriptions, Healthcare.
- Audience Profile: Satisfied customers and brand advocates.
When to Organize
- Scaling Subscriptions: When you want fast growth with a controlled budget.
- New Market Entry: To build the first critical mass of users.
Key Performance Indicators (KPIs)
- Viral Coefficient: How many new customers one existing customer brings on average.
- Referral Conversion Rate: Percentage of referred people who actually purchase.
- CAC Comparison: Cost of the referral reward vs. cost of paid ads.
User Journey (User Story)
- Invite: An active customer gets a unique referral link/code generated by Viramity.
- Referral: They send the link to a friend via any channel (WhatsApp, email, social).
- Conversion: The friend makes a purchase using the link.
- Reward: Both parties receive a benefit (Win-Win system).
Prizes
- Win-Win: Both the referrer and the referee should get a benefit (e.g., $20 off for both).
- Budget: Directly tied to the margin of the new customer.
Risk Management
- Self-referrals: Creating fake accounts. The Viramity engine has built-in multi-account detection.
- Transparency: Customers need to know their referral status. Our panel provides a full view of rewards.
Summary
Deploying a dedicated referral system with Viramity.com takes 14 days. Harness the power of recommendation with a transparent price list and full control. Ask for a quote: marcin@viramity.com
