[Kwerks - #11] How Zomato uses pro accounts to boost sales
No, not only through membership fee
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Metrics Impacted: Referrals | Leads | Customer Spending
Type: B2C | B2B
Previous tip: Ask for feedback as soon as possible (All tips here)
The Problem:
Getting fewer referrals from existing customers.
Recommendation:
Give your Pro/VIP/Premium users the option to share or offer the pro membership to their friends for a limited time.
Effect:
Research shows that when people are allowed to share their VIP privileges, their status is elevated. This is known as the Entourage effect.
This effect can show amazing results for any brand that has a VIP/Premium scheme.
Why it works?
It's not because the VIPs want to show off their ability to share resources or that they crave attention. The effect works due to the heightened feeling that the person sharing the VIP privilege experiences. It can be me, you, or anybody.
Now coming back to Zomato, they let you share your pro membership with 3 of your friends right. The plan is to get users to experience the benefits of Zomato Pro hoping they would see the value during the trial period, eventually becoming customers.
How to implement this?
When setting up a VIP program (with sharing benefits), consider the VIPs as a group, rather than an individual.
Target your offering at the highest end of customers - can be in terms of orders/month, revenue, or others.