There are many ways that a business can attract customers and hope to keep them. Some companies offer referrals to existing customers to attract new customers. I recently heard of a new way businesses are looking to attract and keep their customers, this concept is not one I have never heard of before but I found it quite fascinating. It is being referred as the
three (3) degrees of separation customer acquisition strategy. It is a totally new way to offer a referral incentive to an existing customer base by taking advantage of their social networks.
The three degrees of separation acquisition strategy promotes reaching out to friends and associates via social networks. A company adopting this strategy might be trying to sell a product or service and they are looking to offer an incentive to those who give them a new referral to their friends, and their friends friends and their friends friends friends get it?
So let's say a company attached a dollar amount to a referral, say $15 per referral for their product or service. For every referral, if the company attracts a new customer the person who sent the original referral gets paid ($15), OK so now I am curious.. the best way to illustrate how the process would work check out the graph:
First Degree: An Individual sends an exclusive invitation revealing the incentive to friends and associates most likely to benefit from the offer. This constitutes and Individual’s Group 1, or First Degree.
Second Degree: A percentage of Group 1 joins and offers the incentive to friends and associates most likely to benefit from the offer. This constitutes an Individual’s Group 2, or Second Degree.
Third Degree: A percentage of Group 2 joins and offers incentive to friends and associates most likely to benefit from the offer. This constitutes an Individual’s Group 3, or Third Degree.
Finally, a percentage of Group 3, or Third Degree, then joins. As a result, the Individual will receive a fixed payout (in this example, $15) for each customer acquired through his/her social network; or, more specifically, the Individual will receive a fixed payout for each customer acquired in their First, Second and Third Degrees.
This payout scale is then repeated for each Individual who joins and receives the same payout as the originating Individual. Sounds a little like a pyramid or multi-level marketing program doesn't it, well that is not the case because this program offers NO MORE tiers beyond the 3rd degree, making this strategy stand out from the rest and a much more viable way to make some extra cash while offering friends of yours something they could benefit from.
I think that as more companies find out about this strategy we might find more of them attempting to use it to grow and retain their customers in the future.