Any business will agree that word-of-mouth advertising is the most effective – yet 72% of marketers don’t leverage customer referrals. So, here’s proof why businesses should invest in referral programs:
1. Every day, there are more than 2.4 million brand-related conversations in the US – Word of Mouth Marketing Association
2. 65% of a company’s new business is from referrals – New York Times
3. Customers trust recommendations from friends and family more than any other form of advertising – Neilsen
4. 83% of consumers are comfortable making a referral after a positive experience- Texas Tech University
5. 85% of a business’ Facebook fans are likely to recommend the business –Syncapse
6. Offering a reward increases the likelihood of referral, but the reward size may not matter – American Marketing Association
7. Customers are 4x more likely to buy when referred by a friend – Neilsen
8. A referred customer is 18% more loyal than a customer acquired through a different method – Journal of Marketing
9. The lifetime value of a referred customer is 16% higher than a non-referred customer – Journal of Marketing
10. A referred customer spends 13.2% more than a non-referred customer – Journal of Marketing
Looking at the data, it’s clear that referrals are powerful to gain new customers and increase loyalty. How does your business encourage referrals?
QuickLinkt is an app designed to help businesses grow through customer referrals. Businesses can incentivize, track and reward referrals to leverage loyal customers and generate new leads.