What is Referral Marketing?
Referral Marketing incentivizes existing customers to recommend a product or service to others, leveraging word-of-mouth to generate new leads and sales.
Table of Contents
Full Definition
Referral programs reward customers for sharing with friends or colleagues, often through discounts, credits, or exclusive offers.
This approach capitalizes on trust in personal recommendations, typically resulting in higher conversion rates and customer lifetime value.
Successful referral marketing requires easy-to-use sharing mechanisms, clear incentives, and ongoing program promotion.
Examples
Customer referral programs
Affiliate partnerships
Incentivized sharing
Tracking referral sources
Benefits
Generates high-quality leads
Builds customer loyalty
Cost-effective acquisition
Common Mistakes
Requires program management
Potential for misuse or fraud
Needs tracking and analytics
Conclusion
Referral marketing leverages existing customers to fuel organic business growth through trusted recommendations.