Do you have a referral marketing program in place? If you said yes, good for you. But if you said no, keep reading.
Did you know that 65 percent of new business comes from referrals? That’s what the New York Times says. Here’s another interesting nugget: According to a study by the University of Pennsylvania’s Wharton School of Business, a customer who is referred by another customer has a 16% higher lifetime value.
What we can learn from these two statistics is that people trust recommendations they get from people they know. Flip that around and people who know their friends and colleagues make appropriate recommendations.
Referral programs are an easy way to generate new business. By implementing one your business can expand its customer base, increase visibility and reward your loyal customers. Because naturally you’ll want to give your existing customers some type of incentive or show of appreciation for referring their friends and colleagues to you. There are different ways you can reward your customers for the shout out. Offering discounts, cash back or credit to an invoice or statement is a great way to say thank you.
When your customers make referrals, everyone wins. Use referral programs as part of your lifecycle marketing campaign and watch your business grow.