Introduction
To calculate your Earned Growth score we need to estimate your word of mouth referral. We do this by asking a small percentage of your first time customers what prompted them to choose your brand.
Customers who see a survey before seeing a referral offer are slightly less likely to refer than those who only saw a referral offer. When choosing what percentage of customers should see the survey first, you need to strike a balance between populating your dashboard quickly versus affecting your referral scheme. The higher the percentage, the quicker time to seeing results, but the bigger the impact on your referral scheme each month.
Estimating typical monthly orders and who sees a survey post purchase
Using past data, we predict how many customers you can expect in a month and how many of these are first time customers. We take the percentage split of these first time customers to work out how many customers per month are likely to see a survey. This split is selected during survey set up.
Impact on new customers acquired through referral
From previous data, we know the referral conversion rate for customers who have seen a survey is slightly lower. It’s about 80% of your typical conversion rate. We can estimate this small change in conversion unique to those customers who see a survey. This means the overall impact this has on customer acquisition can be calculated.
Time until calculating your untracked referral
We need 1,000 responses to calculate your Earned Growth. Of customers who see a survey, we use past data from other merchants to work out how likely they are to answer. The time to results prediction is based on your estimated monthly customers seeing a survey multiplied by likelihood to answer.
