In the third session of the Customer-led Growth Summit, Mary Miller, Head of CRM at Wag!, shared insights on connecting pet parents with pet caregivers and has found innovative ways to drive growth through customer-led initiatives. Let’s break down the key takeaways from Mary’s insightful session.
Navigating Multiple Segments
Wag! operates in a unique market with two distinct user groups: pet parents and pet caregivers. This dual nature presents opportunities for referral programs. Mary explained how Wag! primarily uses Extole to drive new pet parent business, with referrals coming from both existing pet parents and pet caregivers.
The Power of “Give-Get” Referral Programs
Wag! implements a standard “give-get” referral program structure:
- New users receive credit towards their first service
- Existing customers who refer new users get credit for their next service
- Pet caregivers receive cash payouts for bringing new pet parents to the platform
This approach incentivizes both sides of the marketplace to participate in growing the user base.
From In-House to Extole: Wag!’s CLG Journey
Wag!’s customer-led growth story included transitioning from an in-house referral program to partnering with Extole. Mary shared that Wag! had been running a referral program for years, built and maintained by their product engineering team. However, they faced significant challenges.
Challenges of in-house, homegrown referral systems:
- Difficulty in prioritizing tests and updates for the referral program
- Limited control for the marketing team over program parameters
- Inability to quickly implement new ideas or run burst campaigns
This situation led Wag! to seek an external referral platform solution, ultimately choosing Extole.
Benefits of using a referral software platform:
- Gain more control over referral programs
- Quickly implement and test new ideas
- Run burst campaigns with increased rewards
- A/B test different reward amounts and messaging
- Protection from fraudulent referral
- Integration with other marketing and data platforms
According to Mary, this shift has allowed Wag! to move quickly and test new strategies without always requiring product or engineering support. For a fast-moving company like Wag!, this agility in their customer-led growth efforts has been a competitive edge.
2x Activation Rates with Personalization
Creating a personalized onboarding experience for referred users is essential. By carving out a specific flow for referrals, Wag! saw significant improvements when they:
- Simplified copy and shortened the onboarding flow
- Added reminders about available credits from the referral
The Result: Wag! more than doubled the activation rate compared to their previous average.
Leveraging Data to Identify and Reward Super Advocates
Using Extole’s audiences feature, Wag! tracks which customers are making the most successful referrals. This data allows them to:
- Target high-performing referrers with personalized messaging
- Offer additional rewards through bonus campaigns
- Focus on quality over quantity in referral acquisition
Tackling Fraud in a Two-Sided Marketplace
Mary discussed the challenges of fraudulent referrals. Wag! uses Extole’s flexible rules and quality engine to identify red flags unique to their business, such as the same addresses for referrers and referees or similar email addresses. These tools have been crucial in reducing fraud and protecting the integrity of their referral program.
Integrating Referral Data Across Platforms
Wag! has successfully integrated referral data from Extole with other marketing tools, especially Braze and Segment. These integrations allow them to:
- Add dynamic content blocks to campaigns, showing available credits
- Display referral credit information in-app through content cards
- Significantly increase conversions and credit redemptions
Empowering Pet Caregivers as Brand Advocates
Mary emphasized the potential of turning active pet caregivers into valuable brand advocates. Wag! is exploring ways to:
- Empower caregivers to build their own networks through referrals
- Identify and reward super-active pet caregivers
- Leverage organic social media activity to drive growth
Key Metrics for Measuring Success
When it comes to measuring the success of referral programs, Mary advises focusing on a few key metrics:
- Account sign-ups
- Completed services
- Number of successful referrals per advocate
By honing in on these core KPIs, Wag! can identify their most valuable advocates and nurture those relationships.
The Importance of Agility and Testing
Mary highlighted the value of working with a platform like Extole, which allows the marketing team to have more control over referral programs. This agility enables Wag! to:
- Quickly test new ideas
- Run burst campaigns with increased rewards
- A/B test different reward amounts and messaging
By embracing a culture of experimentation, Wag! continues to refine and improve its customer-led growth strategies.
What we think: Wag!’s insights demonstrate how a thoughtful, data-driven approach to referral marketing can drive significant growth in a dual marketplace. By transitioning from an in-house solution to a specialized platform, personalizing experiences, leveraging technology, and focusing on their most valuable advocates, Wag! has created a powerful engine for customer-led growth in the pet care industry. Their journey is an inspiring example for other companies looking for new growth channels and unlocking customer-led growth strategies’ full potential.
