In the new data report, The State of Business Customer Referral Programs, Social media is the most used referral method even though it is was discovered that only 50% of referral programs offer it in the study. However, a referral from social media converted from lead to new customer less than 1% of the time. While referring in social media can be easy, this study showed that for business customers, a broad social blast doesn’t work for referrals. This is most likely because these aren’t one-to-one direct referrals from a trusted source. Therefore, while this type of referral is good to build awareness, it loses its power to generate demand. The overall conversion rate of customer referrals made with a referral program was 13%, over 3X greater than the industry average of 3.63% reported by a study done by Salesforce's Implisit. See more data now!
Do you remember how Harry’s managed to gather 100K subscribers in one week, with their referral program? Do I need to tell you where this prelaunch lead Harry’s? Maybe I do. -100+ million dollars in funding, for buying a 94-year-old razor blade factory. -More than 500 employees. -A thriving digital store (which is the fastest growing in the industry). -A barber shop in NYC. -Their own magazine. Apart from all the fancy numbers and achievements, this article is about the thing I mentioned in the first sentence.
<p>Customer referrals are are among the most sustainable and cost effective ways to grow a business. Referral marketing is the process of proactively managing and accelerating customer referrals. Referrals can be accelerated by prompting customers to share at points of delight within your product and making it very easy to share. A/B testing prompts and sharing steps can help you optimize your referral rates. An NPS (net promoter score) survey is a good way to assess the likelihood that someone is willing to share your product. While referrals are largely a function of customer delight for a product, some product categories are more likely to drive referrals than others. An example of a category that would likely have a low referral rate would be adult diapers, because people may be too embarrassed to admit to using them.</p>
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