Are you still not sure why you should bother with referral marketing? If so, here are some eye-opening facts that should convince you.
Word of Mouth
Everyone knows that word of mouth is powerful. The word of a trusted friend goes much farther than any advertisement or marketing message. But you may not know just how powerful. Nielsen research shows that 92 percent of people trust their friends and family more than what they hear anywhere else. Some studies put this estimate higher.
Time for Something New
People are reluctant to give a new product a try, but if that product is recommended by a trusted friend, they’re much more likely to do it. Nielsen research also says that consumers are 77% more likely to try a new product when they hear about it from others. They’re as much as 43% more likely to try something new when they hear about it on social media.
Social Media Referrals
Research by Market Force shows just how powerful word of mouth on social media can be. Not only does it report that 81% of U.S. online consumers’ purchases were influenced by friends’ social media posts, but also that as many as 78% were influenced by posts by the brands they follow.
For those already keen on referral marketing but not sure about offering an incentive, Market Force’s research also shows that 79% of U.S. consumers who “Liked” a brand on Facebook did so to receive an incentive.
Rewards for Referrals
The American Marketing Association found through its studies that rewards increase referral likelihood and that it doesn’t matter what size the reward. Apparently referring is easy to do. People just need a nudge, no matter how small.
The Power of Following up
Finally, here’s a statistic that shows the power of following up. Texas Tech found that 83% of consumers are willing to refer others after they’ve had a positive experience with a brand, but that only 29% of them actually do.
Referral marketing is powerful and it takes minimal investment from a business to do it. Compared to other forms of advertising and marketing, it’s a very cheap way to get the word out.
The Referral Marketing Machine: How to harness the power of word-of-mouth to build your business
Are you struggling to grow your new business?
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Referral Marketing Machine Online Program: How to harness the power of word-of-mouth to build your business
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Duration: 10 weeks
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