Customer-led Growth / The 10% Challenge
The 10% Challenge:
Unleash customer-led growth.
If less than 10% of your new accounts come from referrals, you’re missing a low-cost acquisition channel and higher-quality, more profitable customers.
A Note from Extole CEO, Matt Roche
Wondering if your company can benefit from Customer-led Growth? Then it’s time to take The 10% Challenge.
If you are not getting at least 10% of your new accounts from referrals by existing customers, you are not only missing out on a low-cost acquisition channel–you are also forgoing the opportunity to build a higher-quality, more profitable customer relationship.
Taking the challenge is simple. The next time you review your acquisition targets versus actuals, calculate the percentage of new accounts that can be attributed to the advocacy of your existing customers. Referrals should account for 10 out of every 100 new acquisitions.
If your referral numbers fall short, it’s time to review how you market your referral programs. Ask these questions:
- Are you reaching every potential advocate?
- Are you personalizing the offer to specific audiences with distinct networks of valuable prospects?
- Are your rewards compelling?
- Is the experience seamless?
If you don’t track referral metrics, the 10% Challenge is an exciting opportunity to tap into an underdeveloped channel by making referral marketing a part of your acquisition strategy.
No excuses, you got this!
In the current digital environment, there is no good reason for a referral rate below 10%. In fact, there are examples of firms like yours hitting referral rates of 20%, 30%, and even higher. Why? Because they recognized that referral channels cost less and produce better customers.
So, did you pass the 10% challenge? If not, I know we can help.
Sincerely,
PS – Request a demo with one of our Account Executives. They are the best in the business and can share examples of clients that meet and exceed the 10% challenge.
Why Customer-led Growth is here to stay
Customer-Led Growth companies are objectively more valuable. A new analytical approach called “earned growth rate” captures the revenue growth generated by returning customers and their referrals. Extole is built on six core principles of Customer-Led Growth.
Customer Activity
Make customer advocacy, engagement, and connection the desired goal and outcome of every marketing decision. This focus ensures you create active and engaged advocates.
Permission First
CLG is rooted in our customers’ permission to connect. When we engage and reward customers, we create a two-way connection that builds strong long-term engagement.
Authenticity Always
CLG forms meaningful connections to enable your customers to tell their authentic stories. Authentic stories about your authentic brand is the key to unlocking CLG.
Customer Inclusion
Experience is not transactional, it is a two-way relationship between you and your customers driven by their affinity for you and your gratitude for their engagement.
Customer Advocacy
CLG is more than a marketing strategy - it is a cultural cornerstone. CLG-driven organizations consider customer engagement in every decision, in every function, every time.
Customer Segments
Segment and personalize customer experiences based on what the customer is willing to do, what delights them, and not just what they are willing to buy.
Why Customer-Led Growth now?
Customers are overwhelmingly driven by social cues, influencers, and referrals from friends and family. Yet brands dedicate most of their marketing budget to big tech social and search channels that are getting more expensive and less effective while increasingly disconnecting brands from their customers.
Activate Customer-Led Growth and boost customer acquisition with a measurable go-to-market strategy to grow your customer base with less customer acquisition cost (CAC) and higher long-term value (LTV) resulting in a strong LTV:CAC ratio.
People sell products
Whether it is social proof, influence, or aspiration, the people around us inspire us to want and buy products.
Tap into the enthusiasm and energy of your brand ambassadors and those they influence and inspire.
Supercharge your growth engine
Customer-Led Growth enables brands to influence, reward, and scale the behavior of your brand ambassadors. Sharing, referring, engaging, and using, are not new activities, your ability to encourage and show your gratitude at scale is!
Your customers are already a Customer-Led-Growth channel for you, Extole makes it actionable and measurable.
Real-time reporting and optimization
Gain immediate insights into your referral program’s performance with our real-time analytics. Access detailed dashboards, scheduled reports, and a robust reporting API to optimize your referral marketing strategies and quantify their success.
Personalized and targeted content
Deliver personalized content to your customers and guide them along their journey with targeted email campaigns, customized offers, and personalized rewards that enhance customer engagement and advocacy, fostering a strong community around your brand.
Deep integration with your tech stack
Assign customers unique referral links or codes for effective referral tracking and precise reward attribution. Our platform supports seamless program enrollment, opt-in management, and customer preference settings, ensuring a smooth referral marketing process.
Brand consistency and customization
Maintain your brand’s look and feel with customizable program designs and email options. Tailor program rules and ensures high-quality customer acquisition with our quality engine and risk detection features.
Reward tracking and compliance
Track rewards to measure engagement effectively. Utilize our 1099 reporting criteria to manage or target your most successful advocates, ensuring compliance and optimal performance in your referral marketing efforts.
