Marketing Minute – With a Referral Program Everyone’s a Winner
A customer who is referred by another customer has a 16% higher lifetime value.
A referral program is one of the most effective marketing and customer communications programs you can implement. By using a referral program, your business can expand its customer base, increase visibility and reward your loyal customers.
Referral marketing works because it relies on the basic concept of networking: people listen to other people they know. What’s more, studies have shown that referred customers are better customers. A customer who is referred by another customer has a 16% higher lifetime value, according to a study by the University of Pennsylvania’s Wharton School of Business.
A referral program lets you show appreciation to your customers when they recommend your company to their friends and family. Of course, this usually means giving them a small token of your appreciation for their trust. There are a number of ways you can reward your customers who take part in your referral program. Offering discounts, cash back or credit to an invoice or statement is a great way to say thank you!
Getting your customer’s attention and giving them incentives to spread the word is easier than you think!