How subscription businesses such as Spotify, Hello Fresh or Xero could smash their growth targets with Herdify

Herdify have been working with many UK-based subscription businesses, that all had the same problem. They had experienced strong growth but were witnessing declining organic traffic and diminishing returns from the advertising spend. In short, they were spending more and getting less.

Subscription services rely heavily on word-of-mouth to provide assurance of quality, working with Herdify they were:

  • Able to help this business understand where the hotspots of word-of-mouth were
  • Increase their monthly subscriptions revenues of between 5% and 26% after six months
  • Stick to their existing paid media budget

On average they covered their investment in Herdify within four months.

Life before Herdify

Previous to working with Herdify, their paid activity comprised of bidding on competitive keywords, advertising online and doing direct mail leaflet drops.

Working with Herdify

By analysing their existing customer data, Herdify were able to identify locations in the country where word-of-mouth type behaviour looked to be happening. These are in places you can’t see or measure – WhatsApp, bars, sports venues, etc.

Using the monthly dataset provided by Herdify, they were able to immediately focus their paid spend to deliver more customers without increasing their paid-media spend – covering their platform costs making the investment in Herdify.

This is how they did it:

  1. Focused their PPC activity in geographies where customers had the highest propensity. They used this to bid higher in areas that have a higher propensity of warm prospects clicking
  2. Focused their online advertising in geographies that would stimulate short term purchases but also reinforce word-of-mouth conversations for buyers not yet in the market
  3. They were able to drastically reduce wasted door drops by focusing on areas where the door drop was more likely to be seen by somebody warm to the brand.

**If you’d like to find out how Herdify can help you and your business, get in touch with us for a free trial.**

We’ll take your sales data and use it to analyse where and when you’ve got hotspots of word-of-mouth influence. You can then target these audience locations across any ad channels.

For clarity, Spotify, Hello Fresh or Xero are not customers of Herdify – yet, if you’re reading guys 👀 – but used as named examples to illustrate a business type

Friends in conversation | Herdify

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Ignite your brand power: Why your offline community is the real influencer

“Social communities grow more powerfully offline, yet most marketing tactics tap into the online element. 92% of word-of-mouth – the single biggest influence on consumer buying behaviour – happens offline."

~ Ed Barter, Lead data scientist at Herdify

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