Rethinking Loyalty Programs: Focus on Referrals, Not Subscriptions

– Most ecommerce brands don’t need a subscription or loyalty program.
– The focus should be on incentivizing customers to refer others to purchase the goods.
– Unit economics should be considered to understand consumer behavior and optimize marketing strategies.Implement a referral program to incentivize customers to refer others to purchase your goods.Most e-commerce brands shouldn’t have a subscription. Most don’t even need a loyalty program. There’s only so much stuff you need. The idea of retention marketing is often based on a single person purchasing for themselves, but there’s only so much someone needs. The idea of a program should instead be around putting money in the pocket of the person purchasing your goods for sending you other people in their network to also purchase those goods because they actually believe in the product. Stop marketing one to one. Start thinking one to many. It’s not enough to give people store credit either. You’re happy to part with $50 CAC to Facebook for a conversion, but you don’t want to pay your customers $50 in cash for someone that converts via a recommendation? This is something that genuinely no one is tackling properly because they are stuck in the mindset that they will continue to sell products to people all the time. That’s not the way that consumer behavior works. It’s time to check those unit economics. #marketing #ecommerce #uniteconomics

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