What is a Customer Referral Program?
A customer referral program is a structured process for gathering information about prospective customers. A customer referral program should provide current customers with a clear idea of the ideal client for your business.
Why Are Customer Referral Programs Important?
Customer referrals are a low-cost way to gain leads, but that isn’t all. Referral leads are warm leads, as your current client has already provided some information about working with you. In addition, you typically have more information about a referral lead than one that comes through another source. Referred customers convert at a higher rate because they are a better fit. They also are more profitable, as they cost less to acquire. Finally, they are less likely [I1] to[k2] leave than non-referred leads.