Think about the last time that you took out a loan or used an accountant to prepare your taxes. Even if your experience was positive, was it exciting enough to inspire you to refer the company to your friends, family, or colleagues? Did you run to your phone to tweet about the experience, or send a mass email to your contacts singing the company’s praises?
For most of us, the answer is “no.”
Truth is, most financial transactions tend to be binary and boring at best, and miserably forgettable at worst. And, even if we have a positive experience that we’re excited to share, many financial services companies don’t make it very easy — or incentivizing — to do so.
Does this mean referrals and word-of-mouth aren’t a truly scalable marketing channel for financial services companies — to the extent that a bank, a tax prep app, or a money transfer service wouldn’t see the kind of viral success that many eCommerce companies see with referral marketing?
The Surprising Story Our Data Tells About Financial Services Referral Marketing Programs
After working with financial services companies like Ria Money Transfer to build out an effective referral marketing strategy, we already knew the answer to that question.
But we wanted to validate our hunch with a more definitive analysis. So, we dove into our platform’s data — exploring and analyzing the results that our financial services customers see from Ambassador’s referral marketing automation platform.
Long story short: Referral marketing doesn’t just work for financial services business. It delivers results that dwarf most other channels, and it performs at a level that blows away the KPIs of many successful eCommerce referral programs. To see the full results of our analysis, you can download our report here (or by clicking the button at the bottom of this post).
That said, here’s a teaser from the report that compares the average referral marketing ROI generated by financial services companies and eCommerce brands over a 12-month period:
The Secret Sauce that Makes Financial Services Referral Programs Tick
In our report, we also dive into average referral funnel metrics for financial services companies (total ambassadors, link shares, site visits, etc) and the factors that play a role in driving referral marketing results for these types of businesses.
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