Referral Marketing Trends to Get More Customers
All of the statistics about referral marketing are proven to be true after reviewing a report containing findings from more than 2,000 referral programmes and over 100,000 customer referrals. Referral programmes give businesses much more than just a customer acquisition channel by reclaiming the power of word-of-mouth referrals. Discover why referred customers buy sooner, spend more, and stay longer with several trends indicating that referral programmes are the fastest-growing marketing channel.
Instant Customer Trust
Every day, your customers tell their friends about your company, brand, or products. Because of the credibility passed on through word-of-mouth recommendations, up to 88 percent of referred friends are more likely to trust you. We understand that trust is the foundation of long-term customer relationships. And referrals are the quickest way to gain customer trust. Add a reward for each qualified lead referred by a customer, and you have a winning recipe for referral marketing success.
Easy To Use Referral Software
Using plug-and-play referral software, anyone anywhere can now run a referral programme. No code referral software provides a simple way to create, launch, and manage your referral programme. We love referral apps because it has made referral platforms available to any growing business. They are fully customizable and, in most cases, offer integration features to automate your referral programme.
Highly Qualified Leads
Customers who are referred are 18% more loyal and have a 16% higher lifetime value. In addition, they have been found to spend up to 13.2 percent more. Through word-of-mouth referrals among like-minded customers, referral programmes help to generate a large volume of high-quality leads.
People trust recommendations from people they know 92 percent of the time, compared to 37 percent who trust search engine ads and 24 percent who trust online banner ads. While paid media is becoming more expensive, the return on marketing investment does not reflect this cost increase. Referral leads, on the other hand, convert at a 30% higher rate than leads from any other paid-for channel. Furthermore, 86 percent of businesses that run a well-planned referral programme will see a revenue increase within two years.
Rapidly Evolving Marketing Channel
While Facebook, Instagram, and Google have always been the most popular advertising platforms, their cost per click continues to rise, sometimes by as much as 23%. While the CPC rises, the return on investment remains constant. Referral marketing, on the other hand, is a rapidly evolving marketing channel that has been statistically proven to lower the cost of customer acquisition while increasing the lifetime value of your customers.
Need More Evidence?
We’ve all heard about the various growth success stories that companies like Dropbox, Airbnb, and Uber have experienced through the use of referral marketing strategies. The results show that the time to ride the referral marketing wave is now, citing massive growth at a very low cost.