Quality customers are even harder to attract than ever. With so many methods of targeting, advertising, and campaigning, figuring out which marketing acquisition method attracts the highest quality customers is no easy feat. Extole conducted a study that shows customer referral programs bring in the best customers compared to other customer acquisition methods. Here's what we've learned:
- Referred customers are 4-5x more likely to refer more customers
- Referred customers have a NPS of 15 points higher than customers from other marketing acquisition channels
- Referred customers spend 20% more each year
Many successful companies such as AirBnB, Uber and Amazon have used referral programs to grow their customer base with high quality customers.
Curious to see more about the value of a referral program for your company? Learn more by downloading the 2016 Referral Guide.