referral marketing final

Referral Marketing

Q2 2011

Agenda

Overview Philosophy of referral Potential marketing partners, who are you? List of potential marketing partners Action plan Execution Recommendations

Overview

90% of people cite product referrals as the most influential and trusted form of advertising

70% of people trust consumer opinions posted online

Brand websites are trusted at that same 70% level as online consumer opinions

Worth noting

A satisfied customer will tell 3 people about her positive experience with you within a month

An unhappy customer will tell 7 people of a bad experience within a week

Referral/ word of mouth is ranked the most important factor that influence people’s purchase decision *

* According to McKinsey 2010 report

Ideal customer life cycle

Like

Trust

Buy

Re-purchase/ Refer

Know

With referral…

Know, trust are eliminated thanks to the power of referral

Buy

Re-purchase/

Refer

Try

Philosophy of referral

High quality customer serviceBefore purchase stage (consulting service)During payment stage

Cards with product care instruction Wrapping paper absorbed by perfume

After payment stage Purposes:

Increase the personal relationship with customers Collect data to analyse the customers’ behaviour Monitor the sales service and double check the

customer’s satisfaction How?

Follow-up call service 2-3 days after the delivery status is done

This team should be separated from the sales team

Referral Marketing in action

Referral strategies

1. Customer refers to customer (personal partner)

2. Employees refer to their networks (personal partner)

3. Business refers to business (strategic business partner)

Personal partnership programme

Why?

They like 2en so much They find someone has the same need as

theirs Their personal image to become a trusted

source They know about 2en better than anyone else

Benefits to motivate a personal partnerCommission

7% of the value of total receipts we have from their referrals

Get VND 1mil as a bonus for the total receipts from VND 80-100mil

Get VND 2mil as a bonus for the total receipts over 100 mil

Higher level of personal partner: 10% off every purchase, except for top luxurious brands such as Movado

VIP benefit The right to know and purchase new arrival

products 1 or 2 days before they are physically available in showroom/ website

Strategic partnership programme

Who? Share the same target market

From 24 upwards Middle to high class consumers Beauty & fashion savvy

Well known in the market

Why should they refer? Add value to the relationships they have with their

customers Expect us to refer them in return Trust 2en 100%

How…2en can cooperate with strategic partnersCo-branding

We can do brochures, leaflets, posters or joint magazines together

Present logos, introductions on each other’s website Giving each other products as a prize for the winner of

the partner’s ‘lottery’ competition for their customers

Joint marketing Employ referral engine Create campaigns to exchange each other’s vouchers and

marketing materials

Events/ Workshops Co-organised events to raise awareness over fashion

related trends in which we can promote our products, services together

Benefits…strategic partners can get Approach 2en customer base with about 3000 customers who are high class and savvy consumers, some are celebritiesReach new distinctive ways of marketing

With the expertise in online performance: 2en is the most visited online fashion business in Vietnam

The traffic is normally 5000 visits per day More than 15000 Facebook fans

Strengthen the relationship with customers by offering related high quality servicesAccess 2en’s partnership network and enjoy efficient ways of marketing through other 2en’s business partnersGet commission based on referral activities

Commission packages for strategic partners7% commission package

7% of the value of total receipts we have from their referrals

Get VND 1mil as a bonus for the total receipts from VND 80-100mil

Get VND 2mil as a bonus for the total receipts over 100 mil

Other bonus packages

Get paid if 2en places ad light boxes at their branches

Share the costs of co-branding activities

Steps in action…

1. Construct 2en’s value network2. Identify 2en’s potential partners3. Invitation to join4. Activate 2en’s partner network5. Engage 2en’s network6. Follow up the network

1. Construct 2en’s value network Adopt the customer’s point of view as the principle of referral Do I feel 100% confident referring my best customers to

them? The final purpose is to increase 2en’s value in customers’ eyes

2. Identify 2en’s potential partners Share the same target customer Have good reputation in the market The category includes hair salons, beauty salons, fitness

centres, dental clinics, and car dealers

3. Invitation to join Show them 2en’s interest to refer them to 2en’s customers Stress the key point of the cooperation is to benefit customers

the most

4. Activate 2en’s partner network Co-branding should be considered carefully as

it is the highest level of referral Level 1: exchange vouchers, commission Level 2: Co-organise events

5. Engage 2en’s network

6. Follow up the network

4. Activate 2en’s partner network Co-branding should be considered carefully as it

is the highest level of referral Level 1: exchange vouchers, commission Level 2: Co-organise events

5. Engage 2en’s network Commission Cash in the form of vouchers Free gifts as an added bonus

6. Follow up the network Make a specific day of referral Review every specific period

Should be employed first

List of potential strategic partnersCategory No Name Address

Hair salon1 Mano mano 67 bis Truong Dinh P6 q32 Thìn hair salon 241 Hai Ba Trung P6 Q3

114 Hoang Hoa Tham P72 Cua Dong, q Hoan Kiem, Hanoi12-14 Au Trieu, Hoan Kiem, Hanoi

3 Le bryan 20 Nguyen Thi Dieu, q3201 Calmette, Nguyen Thai Binh Ward, q1

4 Ngoc nu salon So 1 Ðong Xoai P13 qTB61 Hoang Hoa Tham P13 qTB195 Nguyen Van Huong, Thao Dien, q2

5 Art Hair 37B Pham Ngoc Thach P6 q347 Phạm Viết Chánh P Nguyen Cu Trinh q1

6 Salon Pen 466 Nguyen Tri Phuong q107 Khoi hair salon 59 Le Thi Rieng, p Ben Thanh, q1

Beauty salon & spa1 Mymy beauty salon & spa 459C Nguyen Dinh Chieu, Dist. 3

R4-50 Hung Gia 4 Phu My Hung, Dist. 72 Windsor spa & massage Level 3, Windsor Plaza Hotel/ 18 An Duong Vuong, P 9 q53 Beauty life salon 80 Tran Binh Trong P1 Dist.54 The spa Level 1, The Manor, 91 Nguyen Huu Canh St, Binh Thanh5 Huong sen spa 21S Nguyen Van Troi P12 q Phu nhuan

Restaurant&Coffee shop1 The deck Saigon 38 Nguyen U Di, Thao Dien, An Phu, D22 Terrace café Phu My Hung3 Ciao Ngo Duc Ke 40 Ngo Duc Ke, Q1, HCMC

Execution

Potential partners

1. Ngoc Dung cosmetic surgery & skin care clinic

2. Tan Truong Tan beauty treatment centre

3. Kieu My fitness & spa centre

What’s next?1. Cooperate easily with Kieu My fitness & spa

Employ a 7% commission package Print out stickers with a specific promotion code to give

them Based on her referrals, treat her as a good source for

VIP customer market

2. With Tan Truong Tan beauty treatment centre

Exchange coupons first to see how it works Place leaflets/ poster/ advertising light box at branches

3. With Ngoc Dung cosmetic surgery Employ the 7% commission package first Should be cautious about their plan to publish magazine

Recommendations

Employ referral campaigns flexibly according to partners Prepare leaflets/ business cards in hand Prepare coupons Co-branding should be considered carefully

Enhance the customer service During payment stage After sales care

Improve the interactivity of Facebook page

Thank you

referral marketing final

Business

value of total receipts

referral activities

customers behaviourmonitor

relationshipwith customers

customers satisfactionhow

customers eyesidentify

best customers

referral strategiescustomer