The Digital Back Scratch: How Brands are Rewarding Users for Sharing

No matter how clever the creative or efficient the execution, the best brand managers understand that no marketing campaign can equal the return on investment of consumer-driven, word-of-mouth marketing. Traditionally grassroots marketing was required to grow organically, as consumers who have been surprised and delighted by a product or brand were compelled to share their experience and opinion with their friends and acquaintances. But over the past few years, advances in technology have ushered in a new paradigm:  business-driven consumer marketing. By rewarding customers for “sharing” information with his or her social network about a product, service, or event, consumers are finally getting compensated for being brand evangelists. Everyone from Groupon to The Gap has jumped on the social-sharing phenomenon, especially since giving away free or discounted product in exchange for new customers is both effective and reasonably inexpensive, especially compared to traditional marketing campaigns.

Here are just a few of my favorite businesses and brands that are compensating their loyal customers for spreading their message.

1) Gilt Groupe – Refer a Friend, Get $25

Gilt Groupe, the discount retailer for high-end fashion, offers its customers a whopping $25 after they invite a friend to Gilt and that friend makes a purchase. Although $25 sometimes doesn’t go a long way when browsing the online shelves for Trovata or Marc Jacobs, but convince a few friends to drop some coin on the site, and you’ll quickly find yourself shopping on Gilt’s dime.

Other fashion websites with similar offers: RueLaLa, HauteLook

2) Griffin Technology – Get Free Stuff

This iPod/iPhone/iPad/etc/etc/etc manufacturer uses their blog in creative ways to reward customers with free stuff like iPhone cases, speaker systems, messanger bags, gift certificates, and more. The creatives over at Griffin also come up with interesting and fun ways to engage their customers with each giveaway. For example, one Halloween, Griffin gave away a $100 gift certificate for creating and sharing the spookiest costume for a Griffin accessory on Flickr!

3) RedBox – Like Em’ and Rent for Free

If you’re like me, you’re still not sure why and how RedBox can offer movie rentals for a measly dollar a night when streaming services from iTunes, Amazon, and VUDU want upwards of $5.99 to stream. Well, dollar rentals just got even cheaper with RedBox rewards. When you “Like” Redbox on Facebook for the first time, they’ll hook you up with a coupon code for a free movie rental.

Know of some others? Please share your examples of great business-driven consumer marketing with Sharp Dressed Brand!