ShareMagnet
ShareMagnet, rewards customers for recommending and referring products and services to their friends and family across social networks. Co-founded in 2010 by Thomas Larkin and Benjamin Stewart, the Company is focused on harnessing the social media power of companies’ best advertisers – their customers.
Our guiding axiom is that word of mouth is the most trusted and effective form of all advertising. We believe that actual customers are the best marketers and, therefore, companies should hire them. Retailers recognize this fact, however, the significant pain in the market has been how to effectively harness the power of word of mouth, track its ROI, and create a repeatable engagement structure.
ShareMagnet’s application Social Rebate incentivizes customers to share products and brands on social networks after a purchase is made. This allows for effective tracking of word of mouth efforts and clearly shows the ROI.
Through a simple back-end integration, requiring no up-front fees and limited time commitment for most Ecommerce sites, customers are given the opportunity to rebate their purchase by sharing and promoting what they just bought with their online friends. The application is fully integrated into all major social networks, including, Facebook, Twitter and Pinterest, and allows customers to login and post to their preferred social media site. Each click of the link made by friends and family in the network rebates a portion of the original purchase back to the original customer. The technology has a butterfly effect; secondary and tertiary purchasers can post a rebate link, too, which allows the client retailer to promote to a larger network and rebate additional customers.
To date, SocialRebate has impressively shown over a 15% conversion rate for rebates posted to social media sites for participating brands. This revenue is incremental to existing marketing and customer acquisition efforts, and only costs a client (defined as a retailer who has integrated SocialRebate onto its ecommerce platform) when a purchase has been made. SocialRebate is currently installed with 100 clients, has processed over 20,000 transactions, has a 15% participation rate on referrals, and has currently developed software to integrate with the top ecommerce software platforms. The retention rate for integrated clients is over 90% and on the customer side each new rebate claimed is a new registered user waiting to be re-targeted to or syndicated. Additionally, an estimated 20% of revenue generated has been from pre-purchases of Share Magnets, including brands such as MySpace, Care.com, National Positions, Okabashi and Gazelle.com.
