What is Referral Marketing?
Referral marketing is a variation of word-of-mouth marketing which focuses around encouraging existing customers to talk as much possible about your products or services. There are many different ways in which a customer can become a referral, but it is usually a natural progression. It is also common for marketers to influence customers to become referrals with personalized incentives and discounts.
Why Is Referral Marketing Important?
Referral marketing leverages customer interaction to increase sales, engagement and overall customer value. The numbers back up the importance of referral marketing. Almost half of customers who choose a service-based business do so based on the recommendations of peers, according to research by Paul and Sarah Edwards, the authors of “Getting Business to Come to You.” With minimal investment, referral marketing is a pivotal way that potential customers learn more about your offerings.
Related Terms: Customer Referral Program, Word-Of-Mouth Marketing, Customer Reference Programs
Related Resources: The No Fuss Recipe for Hot Referral Leads: e-Book