15 Referral Marketing Statistics You Need to Know

By Beth Corby

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Referral marketing is a powerful tool. It can shape the way that current and future customers feel about your brand. It can rejuvenate your marketing to grow your business. It can deepen customer engagement.

Does that sound too good to be true? We wouldn’t blame you for thinking so. After all, many companies push their solutions and their platforms in a way that aggrandizes their ideas.

But referral marketing is backed up by more than just our idea of how good it is. Across the world of businesses and strategy, people turn to referral marketing because it’s a legitimate tool that actually helps people reach their business goals — and here are 15 statistics that prove just that.

6 Stats That Prove The Power of Referrals

Referral marketing is an avenue for building trust with new customers of all ages. It makes people more likely to consider purchasing from your brand, and builds an instant connection between you and your new customers. Let’s go over some of the statistics that prove just how powerful referral marketing is.

A Nielsen survey on trust and advertising returned some pretty telling numbers when asking what forms of advertising respondents trusted. Referral marketing scored the highest across every single demographic, out-doing editorial content, all forms of ads, and brand sponsorship:

But that’s not all. Referral marketing isn’t just the most trusted. It’s becoming a must-have for both B2C and B2B to have a “seal of approval” from others to survive on the market:

  • 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.
  • Business to business companies with referrals have a 70% higher conversion rate, and they report a 69% faster close time on sales.

Referral programs combine that seal of approval with the one-two punch of a reward.

Not only that, but those who are referred create a positive feedback loop and consistently draw even more customers to your referral program. So the magic of all that social approval just keeps getting passed on:

Customers who are referred to your brand are up to 5x more likely to use your referral program than customers who weren’t.

The numbers here don’t lie: referral marketing isn’t snake oil. It is a powerful tool to add to your marketing arsenal. In a world where consumers are more and more bombarded by ads, brand placement and branded content, word of mouth is a way for consumers to break through that noise.

Which do you trust more: an autoplay video on your Twitter feed, or your best friend tweeting that they love and recommend a product? As consumers become warier of and fatigued by ads, referral marketing continues to shine.

Referral marketing is an avenue for building trust with new customers of all ages.

6 Stats That Show The Value of Referral Programs

Although referral marketing clearly draws people in, it would be worthless if those leads didn’t Go to the full article.

Source:: Business 2 Community

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