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]
Conversion Rate: 300% to 500%
More Likely to Purchase: 400%

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]
Higher Profit Margin: 25%
Higher Avg Order Value: 20%

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]
More Loyal: 18%

They buy the highest quality and spend the most

  • Customer acquisitions through referrals spend 200% more than the average customer. [American Marketing Association]
Average Ticket: 200%

They refer more people, more often

  • Referred customers are 400% more likely to refer customers to your brand than non-referred customers. [Extole]
More Likely to Refer Other Customers: 400%

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]
Better ROI: 650%

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]
Longevity: 37%
Lifetime Value: 25%

Doesn't it Just Make Sense to Put a Referral Generating System to Work in Your Business?