Research On The Strategies Of YJ Company’s Referral Reward Program

Sales promotion,which is of great significance for enterprises to achieve strategic layout,is an important means for developing new customers.With the development of the Internet,all kinds of messages are mixed,causing a decline to consumers’ trust in traditional promotion means.However,as one of promotion means,referral reward program,which is used to develop new customers by word-of-mouth recommendation,has shown its advantages and been adopted by many enterprises.In China’s wire and cable industry,there are a large number of small to medium enterprises,among whom the competition are fierce.For small to medium wire and cable companies,their survival and development are closely related to the development of new clients.YJ Company is one of many small to medium wire and cable enterprises,whose products and service have been recognized by customers.In order to develop new customers,YJ Company has also adopted referral reward program.YJ Company launched "Referral with Award".However,the three-month activity not only fell flat,but also had a loss.This paper took the strategies of YJ Company’s referral reward program as the subject of the research,analyzed the problems existing in the strategies of YJ Company’s referral reward program,and proposed corresponding improvements.The specific process was as follows.Firstly,according to related researches,the American Customer Satisfaction Index(ACSI)model was determined as the framework for analyzing this paper.Secondly,based on the actual situation of YJ Company and the ACSI model,the strategies involved in YJ Company’s referral reward program were sorted out.Thirdly,under the guidance of the ACSI model,the questionnaire survey and personal interview were designed.And the problems existing in the strategy of YJ Company’s referral reward program were found through the analysis of the result.Finally,in view of the existing problems,the improvement suggestions were pointed out.Through the research,it is found that there are six problems in the strategies of YJ Company’s referral reward program.Firstly,in terms of customer expectations,the advertising design was prolix,and the advertisement wasn’t enough.Secondly,as for perceived quality,the design of activity and the staff management were not reasonable.Thirdly,as to perceived value,target customers were not rationally identified,leading to YJ Company’s unattractive design of rewards.Fourthly,with regard to customer satisfaction,YJ Company lacked means for monitoring customer satisfaction.Fifthly,as to customer complaint,YJ Company lacked an effective system for handling customers’ complaint.Sixthly,go so far as to customer loyalty,YJ Company lacked supporting measures.To solve these problems,this paper suggested making the following improvements.Firstly,in terms of customer expectations,simplifying the design of advertisement,and inspiring employees’ enthusiasm by rewards.Secondly,as for perceived quality,having taken the actual situation and convenience of the customers into consideration,YJ Company should optimize the content of activities and the management of employees.Thirdly,as to perceived value,YJ Company should position the target customers appropriately and propose different strategies for rewards.Fourthly,with regard to customer satisfaction,YJ Company should take measures for monitoring and investigating customer satisfaction.Fifthly,as to customer complaint,YJ Company should establish a system for handling customers’ complaints.Sixthly,go so far as to customer loyalty,to maintain relations of customers and the company,YJ Company should create opportunities for customers to participate in the planning of the activity.The research not only provided suggestions for the improvement of the strategies of YJ Company’s referral reward program,but also gave a reference for other small to medium wire and cable enterprises when they would like to develop the strategies of referral reward program.Moreover,the research enriched the study of referral reward program in the wire and cable industry.