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Member Get Member (MGM) Marketing

By 18 September, 2014
  • Thinking

Member Get Member (MGM) marketing is based on a customer referral system; where the customer and the referred friend reap rewards, and the marketer boosts their customer acquisition.

Get it right and MGM can be a great source of maximising your high value customers.

But the reality is that referral schemes are difficult to get right.

Why?   And what can you do?

MGM schemes are complicated, and need regular optimisation but most marketing departments don’t have the resources to do this in house.  Without the right development team working on it, schemes are either left onsite doing very little, or are dropped completely (because they’re not doing well), missing a real opportunity. 

It’s worth outsourcing the technical set up, for example by using a platform like Mention Me

Mention Me makes it easy to implement, test and optimise MGM with minimal reliance on internal development teams.  You can run A/B tests on your campaigns – involving creative, messaging, offer types and offer amounts – and segment your users so that different customer segments see different offers. 

It’s at this level of optimisation and relevancy where many MGM schemes fall down.  Importantly, since there’s a minimal requirement for development resource, marketers can spend more time devising strategies and less time chasing the development team.  This allows you to convert your MGM programme from a static, stale and ineffective scheme into one that leads to a meaningful increase in customer acquisition.

Getting MGM right

So what do you need to make your MGM scheme work brilliantly?

1.Attain high customer engagement with your product

Focusing your MGM scheme on your most engaged customers can significantly increase the effectiveness of the scheme.  Customer engagement can be measured using various factors, including Customer Value or Marketing Engagement.

2.Achieve high awareness amongst your most engaged customers

Once you’ve identified which customers are most engaged with your product, you must engage those customers in the scheme. 

Make your MGM schemes a part of your regular communications. 

Mention MGM consistently on all platforms.  For example, use standardised links and footers in service e-mails and newsletters that customers will repeatedly see over time.  This continual but subtle approach keeps customers aware and allows them to engage when they want.

Make your MGM schemes obvious in your emails. 

Give your MGM scheme its own logo and a regular spot in your marketing communications.

Make it entertaining.  

Aim to attract your customers and encourage them to seek benefits and rewards for their usage, and help you get more conversions.

Send additional solus campaigns.  

Solus campaigns should be used to create energy around scheme and  encourage additional referrals. 

3.Reward your customers

Entice customers to share with rewards and benefits.  Segment your customers by value, product held and engagement, and continuously test the rewards you offer by customer segment – what works for me might not work so well for you, and vice versa.

If you are technically able to do so, give the customer and/ or friend control by offering them a choice of reward.

Now I know that SMART goals are often reserved for Management/ HR, but I think they can be applied rather well to your MGM programme:

  • SPECIFIC – What exactly do the existing customer, and the friend, need to do?
  • MEASURED – Assign volume targets to make rewards more achievable.  For example, ‘get 5 friends to sign up to get x reward’.
  • ACHIEVABLE – Shares to 5 friends might be achievable, but hoping to gain 105 friends would be unrealistic and probably leave most people feeling like it’s not worth the bother.  Even if the reward is really, really good.
  • RELEVANT – Make the reward relevant to the customer and the friend.  The incentive element is lost if they have no interest in what you’re offering.  Run tests continuously to ensure you optimise the programme, keeping it consistently relevant to the customer and the friend.
  • TIME-BOUND – Ensure a time limit is placed on any promotional offers to encourage fast response and increase momentum.

With these points in mind, you can be sure you’re pointing in the right direction to make a real success of your MGM marketing.

Now, take a moment to share this content with your social networks, and simply get in touch with us, if you want some extra help from us to create an amazing system that really does do your marketing for you..


Chris Brownlie and Rebecca Heller, Digital Marketing Consultant, Stream:20

18th September 2014