Referral marketing is one of the most cost-effective ways to acquire new customers for your business. According to research by Influitive, of companies with a referral program in place:
- 69% said they have experienced faster time to close
- 59% reported higher lifetime value
- 71% have seen higher conversion rates
Even more compelling, over 14% of customers who visit a referral page will take action.
This is huge for business, especially when you consider 90% of consumers report word-of-mouth recommendations are the leading influence in a purchase decision, and it generates twice the sales of paid advertising.
It becomes clear that referral marketing is a golden channel when it comes to driving passive traffic, leads and sales for your business.
Despite the value, it is a largely untapped marketing strategy. Only 30% of B2B organizations have a structured referral marketing program in place.
Clearly, this advocacy gap represents a massive missed opportunity for many companies.
To dive deeper, check out the infographic below provided by the team at Referral SaaSquatch. They've used some proprietary referral campaign data to highlight how customers engage with referral campaigns, where they share information, how the information is shared, and what the typical results are following a referral.
Take a look, and let me know if you have any questions.