Customer loyalty program
Noun
[kuhs-tuh-mer loi-uhl-tee proh-gram]
A customer loyalty program is an organized system that allows a company to reward customers for their engagement. The company may offer incentives to customers who promote their brand on social media and in real life, refer business, and perform other activities that are beneficial to the brand. In return, the customers may receive points, swag, conference tickets, gift cards, or other rewards.
Many B2B software vendors understand that their customer base is one of their greatest untapped marketing and sales resources. By encouraging happy customers to share their positive experiences with their peers, vendors can leverage customers as a low-cost, highly effective marketing channel. For example, customers may receive points that can later be redeemed for rewards by referring new business. Or customers may receive cash incentives when they generate new deals that close.
Also known as customer advocacy programs.
Example: As ChamomileCorps’ #1 fan, Refika told all her entrepreneurs friends that the software was a must-have and had saved her a great deal of time and money. Since she received 500 points on ChamomileCorps’ Cham-pions program for every referral, by the end of the year, she had received enough points to redeem them for a brand new iPad.
Critical Points of Trust Within Your Ecosystem
Noun
[cuss-toe-mur am-bass-a-der]
A customer ambassador is a satisfied customer who takes on a special role helping promote the company and its offerings to their peers. Customer ambassadors have experience with the product, believe in its value, and are willing to recommend it to others. They sometimes contribute to customer case studies, webinars, and other promotional activities for the company.
Customer ambassadors are an extremely important avenue of promotion since personal endorsements and recommendations are so highly valued in a buyer's journey. To spot customer ambassadors, look for successful, highly engaged customers who refer business to you.
Example: Kelly noticed a particular customer was the referral source for several new leads. She reached out to the customer and found they loved the product. Kelly invited the customer to participate in a webinar. Voila, a customer advocate!
Noun
[kaast pur sayl]
Cost per sale (CPS), sometimes also known as pay per sale, is a performance-based pricing model used in for partner marketing and affiliate partner campaigns. It measures the dollar amount a business pays to generate a sale or acquire a paying customer to their software.
If a partner program's main KPI is CPS, the benefit is that the partner will only get paid when a sale is successfully completed, meaning revenue for both the partner and company. By paying only for actual sales, CPS minimizes the risk of ineffective campaigns or inactive partners. This model encourages publishers and marketers to enhance their promotional efforts and target audiences that are more likely to convert, driving profitable sales for both parties involved.
Implementing a cost per sale model requires careful tracking and monitoring of conversions. By accurately measuring the cost per acquisition and the revenue generated, advertisers can evaluate the effectiveness of their marketing campaigns and make data-driven decisions to improve performance.
Adopting cost per sale (CPS) as a pricing model can provide SaaS companies with a reliable and performance-driven approach to their partnership ecosystem and affiliate marketing efforts. By leveraging CPS, you can align your marketing strategies with measurable results that are tied to revenue dollars and ensure you're achieving a higher ROI.
Example: Raol's B2B SaaS company implemented a cost per sale (CPS) model to ensure that their marketing efforts are directly tied to revenue generation, allowing an optimization of customer acquisition costs.
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