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15 Surprising Referral Marketing Statistics That You Must Know

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Referral marketing for small businesses or E-Commerce businesses is getting better with every passing day. This robust strategy is making companies more powerful and robust. People are using these marketing tactics to generate revenue and a lot of profit. It has become one of the best ways to enhance your business and increase your sales. When you start your business, you must also understand that the referral program is a lot better to use when you know the statistics.

The customers will more likely purchase from your business if their friend refers to it. 

According to the research on the referral programs, we can say that the people are more likely to buy from your business if referred by a close friend or an acquaintance. According to accurate statistics, we can say that people will buy your product 4 times more. This is how the referral program works for your business.

The overall lifetime value is 16% more for the referral customers as compared to the non-referral ones.

Another known statistic is that The value of the referral customer is 16% Greater as compared to non-referral customers. This is a vital strategy that has become much easier to adopt for the business owner. It is a Win-Win situation as people are more likely to buy from your business through a referral program. And this is the reason why companies are working on referral marketing strategies to be effective. You might feel that referral email templates might not use as much as the local sources. You can also try the Wix referral program.

About 92% of the customers trust the referrals that come from the people they are acquainted with.

This is an expected psychological behavior to trust somebody you already know. It is a viral strategy that most businesses use to involve influencers and bloggers with their business. The bloggers have a vast audience, and people have a sense of acquaintance with them. When the bloggers and influencers are endorsing a product, people can relate to it and want to try it.

Out of the total traffic, around 31% is from social media websites.

Whether you are selling the drum set lab or are more interested in selling the hunting bow lab, you must consider social media as an integrated platform for driving traffic. Social media has become a vital source, but the people to drive traffic for their businesses. Also, it increases sales and revenue a lot easier as compared to the other strategies. If it is going 31 % of the total traffic, it is a winning situation.

29% of the total customers refer your brand, whereas the studies show that 83% of the customers are willing to refer but never do.

A positive experience is the starting point for a good referral. You need to keep in mind that out of the 83 % of the total customers would like to repair your brand or the service if they have a good experience. But it does not have it seems. Out of this 83% of customers, only 29% of customers refer to your brand.

To make your referral program successful, incentives and rewards play a significant role.

Whenever you are starting a referral program, you need to keep in mind that the incentive and rewards play an essential role: the value and the price of the incentive order what does not matter as much.

The non-cash rewards and incentives are comparatively more effective than cash rewards.

Compared to the cash rewards and the non-cash rewards, there is a statistic that says 24% of the non-cash tips are better than the cash incentives and awards. People are more likely to boost their performance and work a lot more when providing them with the incentive. And non-cash incentives and the rewards are comparatively better.

A total of 

84% of B2B buyers start their process of buying based on the referral.

When considering the B2B decision-makers and the buyers, we can say that around 84% of these buyers make their decision to buy a particular product based on the reference. This is how you drive a lot more traffic to your business.

There is 86% more revenue generated by the companies with formal referral programs.

Compared to the companies that do not have formal referral programs and the companies with a formal program, there was a difference of 86% more revenue generation and growth scope.

Only around 30% of the businesses have a formal referral program.

When we compare the companies that do not have a referral program and companies with a referral program, we can see that only 30% of a company has a referral program that they are working on to generate more revenue.

With the referral tools, the company is growing three times more.

The companies using the referral tools for the referral program are more likely to grow three times faster and better.

Only 22% of the company has referral tools.

The companies that have a formal referral program also use referral tools. But usually, up to 22% of these companies have a referral tool for the growth of their business.

An average quantity of 2.68 invites is generated by the customers who are referring.

Based on the survey, we can see that the referring customers can make a 2.68 invite.

Only 14% of the customers who visit the business through the referral program take any action.

We can see that only 14% of the customers buy from a business after visiting the website through the referral program

82% of people ask for references before buying a product.

People want the right product and do not want to invest in something useless. You can see that about 82 % of the people ask for recommendations for purchasing. 

These are the few statistics that you must keep in mind. For marketing and the growth of your business, you must also work with the referral programs for the best results.