Did you know that Chief Marketing Officers see customer advocacy and loyalty as their top priority in the digital era? Despite the increased attention referral marketing programs are getting, we still see plenty of myths circulating the internet and causing confusion. In this presentation we address and correct 7 of the most common referral marketing myths that we encounter at Ambassador. We have given this deck a cc license so you can feel free to download a copy of this presentation to use internally.

1. Ambassador:
7 Common Referral Marketing
Myths Debunked.

2. Myth #1:
An affiliate program is the same
thing as a referral program.

3. Truth #1:
In a referral program, your brand
ambassadors, partners & influencers
all refer new business your way.
Affiliates are more self-interested
and typically motivated by money.
This isn't necessarily a bad thing,
it's just a different message.
Ambassadors may also be
self-interested but tend to be more
complex than affiliates.

4. Myth #2:
Referral programs are less effective
than other marketing channels.

5. Truth #2:
84% of people trust advice from
another satisfied customer but only
50% trust online ads in search
results.
A referral marketing program
leverages this trust to provide a
much greater ROI than other
channels and convert higher quality
customers.

6. Myth #3:
All a referral program takes is
exceptional customer service.

7. Truth #3:
Customer service is a critical part of
creating passionate brand
ambassadors, though, it's not
enough.
For your program to be successful
you'll want to keep your customers
engaged and offer relevant rewards.

8. Myth #4:
Happy customers will automatically
refer your product or service.

9. Truth #4:
If this were true, there wouldn’t be
any need for referral programs. To
the contrary, a Texas Tech study
concluded that 83% of respondents
would be willing to refer new
business to a brand they love, but
only 29% of them actually do.
In order to obtain a steady stream of
quality referrals, you have to train
your ambassadors to listen and look
for a referral opportunity, and to seal
the deal.

10. Myth #5:
Referral programs should only focus
on the most influential consumers.

11. Truth #5:
Having powerful people to back
your brand is going to help achieve
great results, but that doesn’t mean
you should exclude less influential
folks.
In many cases, it’s not so much how
many connections your advocates
have, but the quality of those
connections. All it takes is one
referral to someone with an
unlimited budget to boost your sales
to the next level.

12. Myth #6:
Once a referral program is in place
it can run itself.

13. Truth #6:
The most important component of a
successful referral program is the
relationship between the
ambassador and the brand.
Relationships with your brand
ambassadors must be nurtured over
time.
Referral program software will allow
you to focus on the human factor of
your referral program, while the nitty
gritty details are managed within the
platform.

14. Myth #7:
If I’m a SaaS provider I should just
build my own referral program.

15. Truth #7:
If you are a SaaS company, you
could create your own referral
program. You could also create your
own CMS, and do all your own
hosting too. So why shouldn’t you?
Simple; opportunity cost.
We work tirelessly on making your
referral program seamless and easy
to integrate. So you can stay
focused on your core value
proposition.

16. - An affiliate program is the same thing as a
referral program.
- Referral programs are less effective than
other marketing channels.
- All a referral program takes is exceptional
customer service.
- Happy customers will automatically refer
your product or service.
- Referral programs should only focus on
the most influential customers.
- Once a referral program is in place it can
run itself.
- If I’m a SaaS provider I should just build my
own referral program.
- Affiliate programs and referral programs
are similar, but are not the same.
- Referral programs are more trustworthy
and generate a higher quality customers.
- Customer service is crucial but there are
also other factors to consider.
- Happy customers need to be incentivized
in order to refer a product or service.
- Referral programs should focus on all
customers.
- Successful referral programs should be
continuously optimized and maintained.
- SaaS providers could build their own, but
should focus on their core value.
Myths Truths