How Effective Are Referrals?

How Effective Are Referrals?
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  1. According to a source, “60% of marketers say that referral programs generate a high volume of leads. 54% say that referral programs have a lower cost-per-lead than other channels. Marketers rate referrals as the 2nd-highest source of quality leads” Another source says that, “The study found that referred customers were both more profitable and loyal than normal customers. Referred customers had a higher contribution margin, a higher retention rate and were more valuable in both the short and long run.” The above two sources can easily make us believe that how efficient referral marketing is. This is generally because existing customers know the goal of marketing and understand the need for potential clients. The referrers can measure a good fit between the two and the well-matched customers can help the company produce more profits at a lower cost. Not just this but referral programs help a company to establish long-term relations with its customers.

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