Are referred customers better customers? Yes. They feature higher NPS scores, higher lifetime value, higher AOV, higher likelihood to refer, lower likelihood to churn, and higher profitability than other customers. And on top of that, every advocate who refers gives your brand an NPS of 10.
That’s what Christopher Duskin, Extole VP of Marketing, discussed yesterday in a conversation with Loyalty360. “Marketers realize that referral marketing is a customer acquisition channel, one that complements their other channels and brings in high-caliber customers,” according to Duskin. But within that, he sees a lot of variety in how brands are using referrals to acquire customers and strengthen their loyalty programs.
To learn what brands are doing well in referrals, what they’re not, and where the greatest opportunities for marketers are, read the complete interview.