Think about it: what happens if a friend asks you for a good dentist? If you happen to know one, you will probably happily handle them the dentist's number. And if you don't, you're most likely to make a call or two to help out your friend, right? Well, referrals are here since the beginning of time. That's how we connect with other people: it's a form of social currency.
In marketing, a referral program is a must have. Referral is considered one of the most important stages of your customer lifecycle. Simply because it comes at a low cost, and the chances of retention and loyalty of referred customers are 16% higher than a non-referred one.
So you might be thinking: why not all marketing professionals invest in referral programs? Mainly because, until a few time ago, a referral program would take too much time and effort to be implemented. A study by Heinz Marketing and Influitive say that only 39% of the professionals use referral marketing regularly, but 43% of those acquire more than 35% of their new customers with it.
Join over 70,000 growth pros from companies like Uber, Pinterest & Twitter