How your brand can plan to hit a $100K referral sales goal with Wooly
Referral sales is a common goal or KPI that brands measure within their advocacy programs. This article will guide you through how you can identify a specific sales metric and establish a growth plan for your program with monthly and quarterly benchmarks for the year.
In this example, we’ll reference a brand (call them Sheeply) who has set a sales goal of $1M in 2021. Sheeply would like 10% of their sales to come from their advocate programs.
- Sales Goal for the Year: $1,000,000 x 10% = $100,000 in sales from Sheeply Advocates
- Average Sheeply Cart Size: $40 (excluding shipping & discount)
- Quarterly Breakdown:
|Period||Quarterly Goal||Monthly Goal||Orders Needed||Advocates Needed|
|Q1||$12,000||$4,000||100 referrals per month||50 ( 2 referrals each )|
|Q2||$20,000||$6,667||167 referrals per month||84 ( 2 referrals each )|
|Q3||$32,000||$10,667||267 referrals per month||89 ( 3 referrals each )|
|Q4||$36,000||$12,000||300 referrals per month||100 ( 3 referrals each )|
In the example above, you’ll see the amount of active advocates that your brand will need on a monthly basis that can accrue the amount of referrals you need to hit your quarterly goals.
*Note: the goals are set to increase as you grow the program and continue to recruit new advocates.
The first couple of months may take time to test and learn what incentives and campaigns help motivate more referrals than others. As you start to learn who your top performers are, you can dig into what makes their content unique, add them to additional referral campaigns with larger incentives, and recruit more advocates with similar characteristics.
For example, maybe you find that your mommy customers are generating the most referrals - targeting more parents and launching more campaigns geared towards that lifestyle may help boost referrals.