Last week I hosted a community meetup for The Next Web, discussing how referral marketing can be used to drive sustainable growth 🚀
Thanks to everyone who attended, and for those who weren’t able to join – I’ve broken down the five key takeaways.
📥 Decrease your churn: Showing huge growth numbers might be attractive now, but the biggest killer of any business is customers that churn. By prioritising your marketing channels on quality, not quantity, you can ensure you drive the highest value growth.
📈 Increase your conversion rates: More than 90% of people trust product or service recommendations from people they know. This brings us to a perfect formula: TRUST + OFFER = Conversion GOLD. If you have a great offer for your potential customers, adding trust into that offer will definitely turn them into customers, as 74% of consumers consider word-of-mouth the primary factor behind their purchase decisions. Pro tip: incentives > rewards.
💸 Lower your cost per acquisition: Add a referral loop to your paid media campaigns to get more customers without having to spend extra. Don’t forget, referred customers are 4x more likely to make a purchase – make sure that encouraging customer referrals is embedded into your marketing strategy.
📊 Give your sales a boost: Referred customers lead to 25% higher profit margins, likely due to such customers being a better fit. Remember – people refer similar people!
🤝 Product and marketing work together: In order to succeed, you need to build a business that people want to tell their network about. Marketing teams can’t over sell and then underdeliver with a referral program – and this makes all teams aligned for the greater good
Feel free to reach out if you have any questions regarding referral marketing, and how you can use it to drive sustainable growth 🙌🏼