Customer acquisition and referral programs

On average, referral programs:

• • Drive up to 30% increase in new customer acquisition
  • Double customers’ lifetime value
  • Increase first order value by 10-25%

Referred customers are also three times more likely to recommend your brand to their friends too, continuing the virtuous circle of referral.

At a time where consumers demand trust and transparency more than ever before, referral marketing offers a truly cost effective opportunity to increase new customer acquisition. You can also use platforms like “Mention Me” that works on a cost-per-acquisition basis. Because consumers would rather make informed choices through recommendations or review sites, pull marketing is becoming increasingly more effective than push marketing. Review sites and friends’ recommendations are trusted three times more by consumers than endorsements from bloggers and YouTubers.

Despite the obvious popularity of social media and online platforms, people still frequently recommend brands via word of mouth. In fact 40% of successful referrals happen this way.

Another clear benefit of customer acquisition through referral marketing is that it is easier to demonstrate the very trick “Marketing RoI”. Using a TV or published ad is fine to see an uplift in sales but not always easy to tell what the actual cause and effect was. 

With traditional and standard search engine “pay per click” type marketing costs getting further out of control, and prospects/consumers becoming increasingly cynical of advertising, it makes sense for more businesses to recognise and review the power of referral marketing.

(There are of course other platforms than “Mention Me” however they are very well referenced and unlike others who use affiliate rewards, Mention Me donates £75 to the South London Refugee Association. So please let us and them know if you found this useful and are interested in using them)