Partnerships; Creating a Referral Engine 

Word of mouth (WOM) is one of the most powerful drivers of growth, and social media has supercharged its impact, allowing it to spread faster and wider than ever before.

Viral content is the ultimate proof of WOM’s potential on social media. A single high-performing post, with shares multiplying exponentially, demonstrates how quickly social WOM can take off. In fact, social platforms reward content that gets shared, using it as a key signal of quality.

But WOM isn’t just sharing viral posts. It’s about creating a buzz and getting people to talk about your brand in everyday conversations, whether through customer reviews, partnerships, or content created by others. Building a strong network of collaborators, creators, and partners maximises this potential. After all, other people talking about your brand is far more effective than you talking about yourself.

When your customers recommend your business to their friends and family, it’s one of the most valuable forms of marketing you can generate.

Customer referrals carry immense weight because of the trust in the relationship between the referrer and the referee. The benefits of a strong referral engine are undeniable:

  • Higher Conversion Rates: Referred customers have a 16% higher lifetime value than non-referred customers and tend to be more loyal.

  • Lower Customer Acquisition Costs (CAC): Referral marketing can slash CAC by up to 50% since referred leads already come with a level of trust and warmth.

  • Higher Retention Rates: Referred customers are 37% more likely to stick around.

  • Revenue Growth: Businesses with formal referral programs see 86% more revenue growth over two years than those without.

While you can’t directly control WOM output, you can influence it by focusing on the inputs that spark it. Product excellence is the foundation. People share experiences at the extremes—either amazing or terrible—but only positive experiences generate more sales. By consistently surprising and delighting customers, you create memorable moments that they’ll want to share with their networks. Whether it’s through personalised packaging, thoughtful touch points, or an unexpected in-person experience, every effort to go above and beyond will encourage your customers to spread the word.

Partnerships are a highly effective way to expand your reach and get other parties talking about your business. From product collaborations to cross-promotion on social media with influencers, creators, and more, these partnerships open doors to new audiences.

The first strategy is product collaborations. You can create a special limited-edition product series endorsed by an influencer or co-create a product with a partner brand or individual. For example, a client of mine collaborated with an industry influencer to design a co-branded t-shirt. Naturally, you then promote these collaborations on social media and other channels.

Next, social media cross-promotion can further amplify these partnerships. You can begin cross-promotion instantly with suppliers, wholesale partners, and product collab partners, if you have any. The Instagram collab post feature is great way to achieve this for organic content. You can take it even further with partnership ads on platforms like Meta. I’ve successfully used this strategy multiple times with food and beverage press outlets covering new locations or product launches. This has helped us expand our reach when moving into new territories. Here’s the process:

  • We do something newsworthy, such as launching a new product or opening a new location.

  • We reach out to local industry press.

  • They create an article or Instagram reel.

  • We set up a partnership ad and request they accept it (handled through the ad platform).

Events and activations also offer excellent opportunities for partnerships, depending on the nature of the event or activation.

Another powerful tool in your referral engine is influencer marketing and user-generated content (UGC).

Affiliate marketers are also a valuable referral source. While influencers and UGC creators typically work as individuals, affiliate marketers operate as businesses, promoting your products or services in exchange for a commission on sales generated through their networks. With affiliate marketing responsible for an average of 16% of all online sales, it’s an excellent way to grow your e-commerce channel. Companies with affiliate programs report 30% faster growth than those without, making it a proven method to accelerate revenue.

E-commerce businesses using Shopify can easily manage affiliate programs with third-party apps, while service-based businesses can take advantage of similar platforms. Building a network of affiliates means you have a dedicated group actively promoting your brand, and you only pay for marketing when it results in successful sales.

The emergence of TikTok Shop offers exciting new opportunities in both social commerce and affiliate marketing. Recently launched in Australia, TikTok Shop allows businesses to sell directly on the platform while connecting with TikTok Shop affiliates to boost sales. This powerful combination opens the door to new social-driven sales channels, and many predict social commerce will be a significant trend for businesses looking to maximise online revenue.

Getting other individuals and businesses to help raise awareness for your brand, you can significantly increase traffic, leads, and sales.

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