Double Your Business Size in 2025: Strategy for Growth
What starts with a great customer experience that gets your customers talking about your business, is the foundation of a successful referral marketing program. With a great referral marketing idea, the right software, a well-timed nudge, and an appealing reward, referral marketing is the fastest way to grow your business.
Referral marketing programs accelerate word-of-mouth by encouraging customers to talk about brands they love and get rewarded.
“Product and service recommendations from one person to another is the #1-way people make confident choices about brands”
In its most basic form, word-of-mouth referrals are when happy customers recommend brands to other people they know. The fastest way to double the size of your business is by asking your customers to refer their friends, it’s that simple.
“92% of global consumers trust recommendations made by friends and family more than any other form of marketing” ~ Nielsen’s Global Trust in Advertising report
People trust people that already trust you, which makes existing customers the most powerful and trustworthy marketing channel imaginable. So powerful in fact, many small to medium businesses have enjoyed sustainable growth, and improved customer acquisition, and retention simply by asking their customers to talk about their brand using referral marketing software.
“Where a 10% increase in customer referrals can result in a 1.5% rise in new sales, Bain & Co calculate a 5% improvement in customer retention increases profitability by 75%”
But if word-of-mouth referrals are so effective why do only 29% of customers willing to spread the word about your business actually follow through?
Enter the referral gap – the reason why only one-third of recommendations are passing through your customer’s referral network.
Table of Contents
Closing the Referral Gap
The hole where word-of-mouth recommendations go is because customers don’t have a well-timed or easy way to tell their friends about your business. Historically referral marketing programs were too technical, and expensive for brands to get customers talking about them. But bridging the gap between customers that want to talk about your business and those that actually do has got a whole lot easier. Cost-effective, simple to use, and the top-performing media channel of 2021, if you haven’t got a referral program yet, now’s the time to start.
The Fastest Way to Grow Your Business
With more marketing and less development, intuitive sharing allows a customer to invite their friends to join your referral marketing program on channels of their choice. And with straightforward integrations to automate your referral campaign, referral marketing software allows you to send and qualify business referrals directly in your CRM.
Offering customers their own channel to talk about you to their friends, referral marketing programs reach the right customer, at the right time. And with just the right incentive, encourages more successful referrals and lasting customer loyalty.
Inviting friends who are a good fit with your brand, referral marketing software helps build an army of handpicked customers with a lifetime value of 16% more than those acquired from alternative marketing leads.
Learn about referral marketing from industry-leading experts. Visit Referral-Factory.com to see how small-medium-sized businesses can effortlessly set up and run referral marketing campaigns within minutes.
