In the second session of the Customer-led Growth Summit, Kevin Zeisel, VP of Product at Extole, shared his experienced approach to Customer-led Growth, offering an alternative to traditional ad-based acquisition strategies and ideas for going beyond simple referrals.
Here are the takeaways from Kevin’s session.
The Power of Referral Programs
At the core of customer-led growth lies referral marketing. Kevin emphasized that referral programs are not just about getting existing customers to buy more; they’re about encouraging customers to network with people who might be interested in your product. Companies can redirect their ad spending toward rewarding loyal customers by incentivizing this behavior.
Beyond Basic Referrals: Targeted Audience Programs
Kevin highlighted several innovative approaches to customer-led growth that go beyond the basic give/get referral:
- Location-based programs: Targeting specific geographical areas to drive growth in new markets.
- Demographic-specific programs: Creating tailored programs for specific groups, such as property managers or government employees.
- Friends and family programs: Leveraging your employees’ networks to spread brand awareness and drive sales.
- “Drop a hint” programs: Allowing customers to suggest products to friends and family as potential gifts.
- Sweepstakes and gamification: Using contests to incentivize sharing and engagement.
- Nomination programs: Encouraging customers to nominate others for rewards, fostering community and positive social behavior.
What’s better than influencers? Super Advocates.
Kevin encouraged focusing on existing customers with broader connections rather than traditional social media influencers. This approach allows you to identify “super advocates” within specific communities and tailor incentives to encourage their continued promotion of the brand.
Encouraging Valuable Actions
Customer-led growth isn’t limited to referrals. Kevin stressed the importance of incentivizing other customer actions that benefit brands, such as:
- Downloading a mobile app
- Setting up stickier, high-value services (e.g., direct deposit for banks)
- Upgrading to premium plans
The Role of AI in Customer-Led Growth
Kevin says Artificial Intelligence will play an increasingly important role in customer-led growth strategies. Kevin highlighted AI’s potential in:
- Improving program velocity
- Automating content creation and translations
- Enhancing fraud prevention
A Playbook for Customer-led Growth
For companies just starting out with customer-led growth, Kevin recommends:
- Starting with a core, evergreen referral program
- Experimenting with “burst” rewards and incentive structures
- Developing audience-based programs
- Continuously testing and optimizing
The Future of Customer-Led Growth
Kevin emphasized that the future of customer-led growth lies in increased velocity – the ability to quickly and safely implement and test new ideas. This agility, combined with a deep understanding of customer behavior and preferences, will be key to success in the evolving digital marketing landscape.
By focusing on customer-led growth strategies, businesses can not only reduce their reliance on expensive ad platforms but also foster stronger relationships with their existing customer base. The power of customer advocacy and targeted incentives can drive sustainable growth and brand loyalty in ways traditional advertising simply can’t match.
