10 things you didn't know about referrals

Ever feel like your ad campaigns aren’t hitting the mark? Struggling to cut through the digital noise and grab your audience's attention? This is where referral programs come into play.

By using the power of word-of-mouth and tapping into your loyal customers' networks, you can drive high-quality leads that are more likely to convert. Referrals not only provide a cost-effective alternative to traditional advertising but also build trust and credibility. When customers recommend your brand to their friends and family, it creates a ripple effect of authentic engagement that online ads simply can't replicate.

According to Nielsen, about one third of online advertising campaigns don't work — they don't generate awareness or drive any lift in purchase intent.

With an effective referral program in place, you can increase profitability, lower customer acquisition costs, drive sales, etc.

Here are some compelling reasons why your marketing strategy needs referrals today. See the infographic below:

Sources: Nielson, Sales Benchmark, HBR, Wharton, Forbes, BCG

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To run an effective referral program, it isn’t enough to expect customers to start talking about your business. Asking the right customers at the right time is a crucial element of a successful referral structure.

You might hesitate to ask your customer to promote your brand, but with the right reward and well-designed referral program, you will quickly see the return on investment.

If your company has a powerful referral solution in place, setting up an effective referral program should be easy to implement. Get in touch with our experts if you have questions about the right referral software for scaling your business.