Referral marketing is one of the most cost-effective ways to acquire new customers for your business.
According to research by Influitive, companies with a referral program in place experienced:
- 69% faster time to close
- 59% higher lifetime value
- 71% higher conversion rates
And, over 14% of all the people visiting a referral page will take action and share the campaign. This means a huge portion of your existing customer base are primed and ready to advocate for your business.
You just need to activate them.
The fact that you already have a segment of your customer base literally waiting to shout your name from the mountain tops is extremely valuable. Especially when you consider 90% of consumers report word-of-mouth recommendations as the leading influence in a purchase decision, and generate twice the sales as paid advertising.
Despite the clear value, referral marketing is still a largely untapped channel. Only 30% of B2B organizations are investing in the channel. This gap means most companies are leaving a ton of potential customers and money on the table.
But, in a zero-sum game, where other businesses are missing the beat, a window of opportunity opens for the rest.
To help understand the benchmarks and value a strategic referral marketing program could bring to your business, the team at Referral SaaSquatch have put together the infographic shown below.
Their research is based off one month’s referral marketing performance data from their consumer and enterprise business partners spanning multiple industries such as travel, software, retail and entertainment.
Read on to learn more about how customers engage with referral campaigns, where they share information, how the information is shared, and what the typical results are following a referral.