Overview

This article explains referral marketing, its importance in business strategy, and its role in enhancing customer engagement and sales. It also includes related terms and resources for further reading.

Information

What is Referral Marketing?

Referral marketing is a variation of word-of-mouth marketing that focuses on encouraging existing customers to talk about your products or services as much as possible. There are many different ways in which a customer can become a referral, but it is usually a natural progression. It is also common for marketers to influence customers to become referrals with personalized incentives and discounts.

Why Is Referral Marketing Important?

Referral marketing leverages customer interaction to increase sales, engagement, and overall customer value. The numbers back up the importance of referral marketing. Almost half of customers who choose a service-based business do so based on the recommendations of peers, according to research by Paul and Sarah Edwards, the authors of “Getting Business to Come to You.” With minimal investment, referral marketing is a pivotal way for potential customers to learn more about your offerings.