Why is customer acquisition difficult today?
93% of all purchases today are online review-based or through word of mouth, and yet it's hard to incentivise these. Customers are more likely to leave a review after a bad experience than a good one.
Platforms like Groupon and Ubereats cut into margins and attract bargain hunters, so are actually damaging rather than helpful for existing businesses
81% of consumers trust the advice of friends and families over business advice, however at the moment there is no easy way to create a referral program which is easy to scale.
Why this will be more of a problem in the future:
In mid-March over 60% of Australian businesses reported being affected by the COVID-19 coronavirus
Due to recent events, eating out is an expense Australians are expected to cut back on as talk of a recession builds.
How our platform works - case study:
Vamos restaurant wants more customers but they don't want to spend more money on advertising.
They set up a referral program, incentivising their customers to promote the restaurant to their friends.
Customers are given a unique code that they can use to give to their friends, which will entitle each friend to $25 in VAMOS tokens if they claim the tokens (they will need to download the app if they don't already have it).
Each time someone claims the tokens, the referrer also gets $5 in VAMOS tokens - which incentivises them to refer as many people as possible.
One of their customers, Charlie, invites his friend Sarah to claim her VAMOS tokens through his link. She has never been to Vamos before.
Sarah downloads the app, claims her $25 in VAMOS tokens, and Charlie also earns $5 in VAMOS tokens.
Sarah uses her tokens on her first visit to Vamos by paying through the app. The total bill is $200, but she only pays $175.
Vamos' first time customer referral commission is 20%, so as soon as Sarah pays her bill, Charlie receives a message saying: "Your friend Sarah just visited Vamos. Thanks! Here's AUD$35 in VAMOS tokens for you!"
With over 500 regular customers all recommending their friends, Vamos soon gets very busy!