Why referral marketing is so important

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For example, a company may offer a discount or special promotion to customers who successfully refer their products to someone else. Or, they might partner with an influencer or offer an affiliate program to incentivize people to promote their products. This not only encourages people to share product information but also to become active participants in the marketing process by finding potential leads and providing referrals.

The best part of referral marketing programs is they don’t just benefit companies–customers also reap the rewards of their efforts. This makes referral programs an excellent way to build loyalty, as well as increase your customer base.

Referral marketing is an effective way to attract new fantuan data customers and increase sales. Here are a few reasons your business should consider having an active referral marketing program.

Little to no cost
There are very few upfront costs to this strategy. All you need is a passionate customer base, a strategic plan and some creative referral marketing ideas.

Now, that’s not to say that you shouldn’t reward your customers for their referrals. Offering incentives like discounts or free products helps to encourage people to spread the word about your business. Be sure to factor in some costs for incentives and planning.

High customer lifetime value
A study from the Wharton School of Business shows that referred customers have a 16% higher lifetime value than average customers. This means that over time, customers who come via a referral will bring more revenue to your business than those you acquire elsewhere.