Benefits Of Referral Programs

The Benefits Of Referral Programs

Have you ever wondered why some marketing techniques work better than others? You’re not the only one. Marketers around the world are always scrambling to find that one marketing method to yield maximum results, and Referral Programs have proved their mettle time and again. Not sure of the numbers? Check out these benefits of Referral Programs and give your marketing effort a push in the right direction. 

Increase Your Marketing Reach 

• Over 80% of marketers believe referrals generate excellent leads

With a satisfied customer referring your brand to their friends and family, half your job has already been done, all that’s left is to close that sale. 

How much do different age groups trust Referrals? 

• 10- 20 years – 83%
• 20-30 years – 84%
• 30-50 years – 83%
• 40-60 years – 80% 

ROI Like None Other

• Referral Marketing has the highest ROI in comparison with other channels like Email, Content and Social Media.

• Customers discovering a brand through referrals are likely to spend 200% more than others.

Improved Brand Awareness

• Word of mouth referrals account for almost 55% of sales for new companies
• On average, a US Citizen mentions a brand name 9 out of 10 times during a conversation. 
• More than 90% of consumers trust a brand referred by a friend/family member. 

Social Media 

• More than 50% of consumers say a personalized experience triggers a positive social media mention of a brand. 
• Over 60% of consumers look for social proof before committing to a new brand. 
• A positive mention on social media has the potential to reach at least 600 people at once. 

Better Conversions, Better Sales 

• B2B companies with positive referrals experience a 70% higher conversion rate.
• Referral Marketing has up to 5X higher conversion rates than all other marketing channels.
• A happy customer is likely to generate almost 3 leads per year on average. 

Low Cost Hiring   

• 45% of referred employees stay longer with companies.
• Cost per Hire for referral programs is the lowest in comparison to other hiring channels.
• More than 75% of job seekers actively seek information on a company’s reputation on social media.