Seven Reasons Why a Systematic, Predictable, and Proactive Referral Marketing Program Can Spark Exponential Growth in Your Business
Referred customers are the most desirable prospects because…
They make faster purchase decisions and negotiate the least
-
Conversion rates for word-of-mouth recommendations are 3-5X higher than those of non-referred prospects. [WOMMA]
-
People are 4X more likely to make a purchase when referred by a friend. [Nielsen]
They buy the most and buy the most often
- Referred customers bring you 25% higher profit margins. [Boston Consulting Group]
- Referrals have a 20% higher average order value (AOV) each year. [DMA and Forrester]
They are the most enjoyable to deal with
- A referred customer is 18% more loyal than a customer acquired by other means. [Harvard Business Review]
They buy the highest quality and spend the most
- Customer acquisitions through referrals spend 200% more than the average customer. [American Marketing Association]
They refer more people, more often
- Referred customers are 400% more likely to refer customers to your brand than non-referred customers. [Extole]
They are the least expensive to acquire
- Referral leads convert 30% better than leads generated from other marketing channels [R&G Technologies]
- On average, brands generate a 650% ROI for every dollar invested in influencer marketing. [Tomoson – Influence Marketing]
They have a higher lifetime value
- Customers referred by other customers stick around 37% longer than non-referrals. [Deloitte]
- The Lifetime Value of a referred customer is 25% higher than that of other customers. [Wharton School of Business]