Many marketers are starting to consider referral programs as their top customer acquisition tool. Why? Because referrals have proven to work, it's that easy. As humans, we're more inclined to trust a business if we were referred by a friend or someone we know, that's our nature. In fact, 80% of all purchase cycles today include a word of mouth recommendation.
Your customers are already talking about your brand, why not enable them to earn rewards for every friend they refer? By promoting your brand through your customers, you drive brand engagement/loyalty, new acquisition, and more revenue. Word-of-mouth is a powerful acquisition tool, but is hard, if not impossible, to measure. To turn word-of-mouth into a meaningful customer acquisition channel you need a Referral Program that will make it easy for your customers to refer their friends and family to your brand.
One great example of the success of Referral Programs is retailer Hanna Andersson, who acquired over 25% of their yearly customer acquisition goal in just two months and recouped investment cost in a single month. Check out the Hanna Andersson case study here and learn how referral programs could be a successful acquisition channel for you as well.