Do you see where we’re going here?
When you think about customer acquisition channels, your mind probably wanders toward strategies like SEO, paid advertising, and influencer marketing. But there’s a missing piece to the puzzle that multiplies the effectiveness of all your acquisition efforts: referral marketing.
Until now, paid advertising channels have been the primary acquisition source for brands, but the new iOS and third-party cookie changes are making this harder. In fact, in the second quarter of 2021 social media ad prices increased by 14%, according to Barron’s
With referral marketing being a tactic that relies on direct recommendations from trusted shoppers, it’s one of the strongest acquisition tools that result in a high return on investment.
To see the best results, referral marketing needs planning and dedication from your entire team.
From the marketing department to product, and even customer support, your program’s success all comes down to the right planning and promotion.
Referral marketing is a strategy to encourage a brand’s customers to organically recommend products to family and friends, usually through an incentive like 10% off for both the referrer and referred friend.
The goal? To acquire new shoppers and track customer advocacy.
Here’s a fun graphic below that breaks down how referral marketing works.
And truthfully, creating a referral strategy is worth it: not only are referred customers four times more likely to refer others to a business they’ve purchased from, but there are several other benefits.