The Opinion piece is reproduced below:

9 Cases for Customer Acquisition Through Social Referrals

Vijay Sundaram

This month we look at 9 businesses cases where customer acquisition, through social referrals, adds startling value. In each, SocialTwist customer examples are in […].

1. When Referrals Amplify Distribution. Social referrals greatly amplify coupon distribution since they are very effective in reaching the right people. We’ve done this for a number of brands and consumer product companies. [Sara Lee, Coca-Cola]
2. When Customer Acquisition Costs Are High.  Finance companies like brokerages and insurance are natural candidates. They also benefit from high customer lifetime value which increases the return from social referrals. [ING]
3. When You Suffer High Attrition. Businesses with low switching costs and low differentiation, like mobile operators and auto service companies, have high churn. Loyalty programs prevent switching and social referrals can anchor loyalty and retention programs (you tend not to switch if you refer). [Jiffy Lube]
4. When Your Business is Referral-Driven. Realtors, brokers, and businesses that serve small businesses rely primarily on existing customers to gain new ones. An institutionalized referral system is a godsend. [Intuit]
5. When Your Consumers Are Socially Active. Apparel and entertainment companies target young adults. Child product and food companies target mothers. Both groups are prolific on social media, making social referrals highly impactful. [Lacoste, GAP, Huggies]
6. When Your Offers Are Seasonal & Time-Bound. Vacations and hotel stays are examples of time-bound offers where the underlying asset expires when not sold. Using social referrals to improve utilization is a blessing without disguise.
7. When You Offer Subscription Services. Service companies like cable TV and pest control providers already reward customers for referring others. Institutionalizing this process is just what the doctor ordered. [Terminix, Orkin]
8. When You Are An Etailer. These companies run everything online – from lead generation to fulfillment. Social referrals fit like a glove into the online consumer engagement model. [Kodak Gallery]
9. When Your Customers Are Connoisseurs. Gourmet foods and wineries benefit from social referrals because their customers are buffs whose referrals carry clout. [Peet’s Coffee]

We tried hard to think of products where social referrals won’t work and came up with a couple – aircraft engines and hemorrhoid treatments. Let us know if you find others.