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Why you should build a referral scheme into your loyalty program

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.

Referral Scheme Loyalty Program

The Stats

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.

 

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.

 

 

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.

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