Referral sales stand as a pivotal Key Performance Indicator (KPI) for brands immersed in advocacy programs. This article aims to provide a comprehensive guide on identifying specific sales metrics and devising a growth plan with monthly and quarterly benchmarks.
Setting the Scene:
Let's delve into a practical example featuring "Sheeply," a brand with a 2021 sales goal of $1 million, with the ambition of channeling 10% of sales through their advocate programs.
Calculating Quarterly Goals:
The annual sales goal of $1,000,000 breaks down to a target of $100,000 in sales from Sheeply Advocates. To align with this, understanding the Average Sheeply Cart Size (excluding shipping and discount), set at $40, is crucial for quarterly planning.
It's important to note that these goals are designed to evolve with the growth of the program and the continual recruitment of new advocates. The initial months serve as a testing ground to understand which incentives and campaigns effectively motivate referrals.
Learning and Adapting:
Identifying top-performing advocates is a crucial step in refining your strategy. Analyze what makes their content unique, integrate them into additional referral campaigns with more substantial incentives, and actively seek out advocates with similar characteristics.
For instance, if mommy customers emerge as prolific referral generators, a strategic pivot towards targeting more parents and launching campaigns tailored to the parenting lifestyle may substantially boost referrals.
In the dynamic landscape of advocacy programs, achieving referral sales goals requires a strategic and adaptive approach. By continually learning from your advocates, refining incentives, and targeting specific audience segments, brands like Sheeply can not only meet but exceed their sales targets through the power of referrals.