Referral Marketing Works
We all know referral marketing works. Nowadays Referral Marketing is a suitable tactic in Digital Marketing because it can increase the amount of sales and reduce the costs.
People like to buy from the stores which someone tells them. A famous celebrity, or a family, a friend and everyone they trust. It is easier and has less risk to choose the place, product or service to buy.
People trust their friends more than an advertisement. This is why Referral Marketing is so effective.
There are 3 reasons why referral marketing works:
1-Target the exact customer
Your customers know their friends exactly, so they can introduce your product or service so effective to them.
People trust their friends, the news websites, blogs and influencers on social media.
3-Accessibility of target users
It is so easy to find the target customers. And referral marketing is the way to tell them what to buy.
Here are some other statistics sources:
92% of consumers trust referrals from people they know – Nielsen
Word-of-mouth is directly responsible for 20-50% of purchase decisions – DCR Strategies
Referred leads have a 16% higher lifetime value, convert 30% better, and have a 37% higher retention rate than other leads – Invesp
Referred customers are 5x more likely to use your referral program than customers acquired via other channels – Extole
People are 4 times more likely to buy when referred a friend – Nielsen
Consumers rely on word-of-mouth 2-10x more than paid media – Boston Consulting Group
Referrals are powerful because of the trust associated with them. If your friend trusts your judgment and you refer him to a product, service, or business, they are far more likely to act upon that referral. This is why small businesses can really benefit from referral marketing.
This type of marketing is also very cost-effective compared to traditional methods such as billboards, print, or broadcast advertising. It can be as simple as paying people a small fee to talk about your business in their everyday transactions, online, or via their social networks.
People will respond to the advice of their friend far more quickly and with greater enthusiasm than they will respond to a cold call or unsolicited advertisement, email, or wall posting on Facebook.
And because referrals come from friends and close acquaintances, the business relationships that result are stronger and have a potential for greater financial gain and long term success. It is a system that works well, is simple to implement, and cost-effective for small businesses, making it a fantastic marketing option.
What does Telirco do for Referral Marketing?!
Telirco, a knowledge-based company has launched a new product "Rematag" recently. It is a good way for different businesses to make their customers a seller for them! It has so many benefits for businesses some of them are:
1-Increase the customer's loyalty
2-Improve the internal production of the country
3-Increase employment and the income of the families
4-A core competency for your business
For more information check out its website.