If you are a marketer or business owner, you have probably tried to identify those unicorn consumers – loyal customers and sadly enough it is difficult. Would you believe that a solution does exist? You could increase your customer brand loyalty while increasing your customer acquisition through word-of-mouth marketing.
The power of word-of-mouth marketing was discovered in 1970’s by George Silverman, a psychologist, who discovered that “One or two physicians who were having good experiences with a drug would sway an entire group of skeptics. They would even sway a dissatisfied group of ex-prescribers who had had negative experiences!” With the increasing use of the Internet and social media, word-of-mouth has become an even more powerful and useful resource for consumers and marketers. 74% of consumers identify word-of-mouth as a key influencer in their purchasing decision.
The best way to incentivise your customer is to align their interest with your company’s interest. Coupons and discount vouchers usually work great, the company makes a sale and the customer gets a discount – it’s mutually beneficial. Unfortunately, coupons or discounts do not differentiate your business from the other 100 companies in the same category as you and that are also listed on Groupon.
What if you could incentivise your customers by allowing them to invest in your company in return for a share of revenue up to a maximum amount? This aligns your customer’s interests with your company’s interests without diluting your equity. There is a higher probability that a customer who has invested in your company will share it with his family and friends. Based on Nielsen, customers are 77% more likely to buy a new product when learning about it from family and friends.
StartWise is a crowdfunding platform that enables individuals to invest in companies they care about in return for a share of the company’s revenue – no equity dilution. It is a great way for companies to create brand loyalty and to boost their customer acquisition through word-of-mouth marketing.