Misconception: Customers acquired through referral schemes represent low-value, one-off transactions compared to other channels.
Fact: Customers acquired through referral schemes have high retention rates and strong loyalty.
When it comes to the benefits of referral schemes, the stats speak for themselves.
- 28% of millennials say they won't try a product if their friends don't approve of it.
- Word of mouth is the primary factor behind 20-50% of purchasing decisions.
- 84% of B2B decision makers start the buying process off with a referral. Referred prospects also convert 30% better than leads generated through other marketing channels, and have a 16% higher customer lifetime value.
With so many options and competitors, customers put their money into brands they trust. According to Nielsen’s Trust In Advertising report, 84% said they found referrals to be the most trustworthy source when making a purchase.
In the world of referral programs, there is no getting without giving.
What are your customers looking for? What incentive will get them to show your product to a friend?
There are key differences between referral schemes and loyalty programs. In referral schemes, customers are rewarded for referring a friend who becomes a customer and in loyalty programs, customers are rewarded for repeat business. By including a referral scheme in your loyalty program you can sway customers away from competitors AND net new business.
Misconception: Referral Marketing is complex and difficult to implement.
Fact: The ENTERTAINER business takes the complexity out of referral marketing and makes it easy for your brand and your valued customers. Get in touch today.