The only thing to sink faster than the Titanic is most brands’ Return on Ad Spend (ROAS) following the summer of 2021 (you know, the iOS debacle).
Reported ROAS has dipped ~40% since then, ending the era of the Facebook Slot Machine that damn near promised to 2, 3, 4, or 5x your money.
Now, brands face an uphill battle to get their products in front of new customers.
Enter Groupshop, the product referral platform for Shopify brands.
On average, brands see a 4x-6x ROI, or as we’ve coined it ROGS (Return on Group Spend), with Groupshop.
Let’s get into it.
Have you ever asked your customers for other customers?
You likely have. But if you’re not seeing results in terms of ROI or revenue, there are reasons behind it. Here are a few reasons why your referral program is not generating results:
- Incentives are unappealing
- You only educate your customers once about sharing
- You ask your customers at the wrong time
- Your program creates friction between sharing → earning cashback/rewards
- Your program requires customers to login or signup to join
Any of those land for you?
With Groupshop, we’ve combined the transactional rewards that customers love (cashback + discounts) and the social element (microstores, curating products, name tags) that drives action.
Because Groupshop is performance-based. You only give cashback to customers who have referred a new customer (the impressions don’t cost you a thing). That cashback is less than you would give Facebook, but a meaningful amount to your customer.
Depending on your level of rewards and the number of people who shop per Groupshop, your ROI will fluctuate but always stay net positive.
No other growth channel can say the same thing withutmost certainty.
This is why brands’ attention is moving away from ads and towards empowering their most engaged customers.
It’s the most profitable channel you have.
Why wouldn’t you be leveraging it more?
Increase Your ROI with Your Customers
Turning your customers into marketing machines isn't easy..
The truth is, people don’t want to share an affiliate link or discount code. Don’t believe us. Believe the numerous studies that show enough people feel bad about profiting off their link to not share it with family and friends.
This is not because people don’t want rewards. They just don’t want to feel bad about it.
With Groupshop, you empower your customers with their own micro-store that makes them feel like they are shopping together with their friends –not independently through a code that reeks of grifting for a few bucks.
If you have the goods, your customers will want to share it with their community.
Give them the tool that makes them feel good and have fun sharing your products and ride that wave to a 4x-6x ROI.
Or, keep playing roulette and hope running ads goes back to how it used to be.
How Groupshop Can Help
Imagine if your brand was part of a curated referral platform with customer incentives built in.
Groupshop leverages the power of curation that drives Gen Z shopping habits. Users get access to their own customized Groupshop page and can start sharing recommendations with friends to inspire and inform their next purchase.
We’re not being cheesy. Shopping alone sucks, for both consumers and brands. Groupshop taps into a community that already loves your brand, makes word of mouth measurable, and rewards friends for shopping together.
Groupshop incentivizes your customers to help spread the word about your brand. That means lower acquisition costs, measurable word of mouth referrals, and a community of loyal customers that grows with you.