By using the power of referral marketing, you can increase the amount of people talking about your business. Ultimately, this buzz surrounding your business will turn into sales. After all, 65% of new business comes from referrals. And by using the Expect Referrals software, it’s never been easier for your customers to refer you and redeem a reward for doing so.
Take a look at these statistics that prove referral marketing can change how you promote your business:
A University of Chicago study found that non-cash incentives are 24 percent more effective at boosting performance than cash incentives.
Wondering what you should give your customers as a reward for referring you? Well, don’t make it cash. People are more likely to redeem an offer it it’s a discount or giveaway.
A study done by Exact Target reports that 63 percent of people surveyed said they use email to share content with their friends and family, 44 percent use Facebook and 5 percent use Twitter.
The Expect Referrals software allows your customers to send pre-written emails or social media posts to their friends and family, encouraging them to try out your product or service.
On average, a message needs to be communicated seven times before it is acted upon.
That’s why it’s so important that you are consistent when promoting your referral marketing campaign. Asking customers as they check out, putting the link to your Expect Referrals site on your receipts and other promotional tactics are great ways to get people to refer you.
Studies show that most customers will refer the businesses they patron, but most don’t because they are never asked.
Yet another reason why you shouldn’t be shy about asking people to refer you. At the end of the day, the worst thing that can happen is that they tell you no.
A referred customer has a 15 percent higher lifetime value than a walk-in customer.
Because a friend or family member has already given you a positive review, the person that they refer is already one step closer to falling in love with your business. Win them over with great customer service, and you’ve got a returning customer.
The closing ratio for unqualified leads is 10 percent, versus a 60% close ratio with referred leads.
An unqualified lead is unsure about your business, or hasn’t yet been nurtured enough for it to be likely that they will purchase from you. When someone is referred, they automatically become a qualified lead because they are more likely to trust you because their friend or family member does.
Rewarded customers are 5 times more likely to refer than customers we are not given an incentive.
Offering a customer a discount or free item in exchange for referring a couple of their friends or family members makes it more likely that they will take the time to refer you. Make sure that it is good enough to entice them, but still profitable for your business.