27 REFERRAL FACTS TO BLOW YOUR MIND!
You know referrals are valuable, but do you know just how valuable?
Referrals are amazing, awesome and without a doubt the most sought after compliment to our services and products, but are any of us really focusing on the power of referrals, making plans to increase and grow our referral business? And if you are, how are you tracking and optimizing on your referral business in the digital era?
Here’s 27 referral facts to blow your mind and get you ready to start your own custom referral program today!
- Word of Mouth is STILL the most influential factor in driving purchases. – Nielsen
- 72% of marketers still do not recognize and leverage the value of customer referrals. – Loyalty360
- “Referral Marketing is the dark horse of marketing, a dark horse is a candidate or competitor about whom little is known but who unexpectedly wins or succeeds.” – GIGAOM
- People are 4 times more likely to buy when referred by a friend – Nielsen
- The lifetime value of a new referral customer is 16% higher than your average customer. – Wharton School of Business
- “As consumers overwhelmed by product choices tune out the ever-growing barrage of traditional marketing, word of mouth cuts through the noise quickly and effectively.” – McKinsey
- More than 50% of people are likely to give a referral if offered a direct incentive, social recognition or access to an exclusive loyalty program. – Software Advice
- Millennials ranked word-of-mouth as the #1 influencer in their purchasing decisions about clothes, packaged goods, big-ticket items (like travel and electronics), and financial products. Baby Boomers also ranked word-of-mouth as being most influential in their purchasing decisions about big-ticket items and financial products. – Radius Global
- The Average Gross for a Dealership Referrals = $1,298, Fresh Ups = $817. – NADA
Are these referral facts too much? You can take a break but there’s still 17 to go!
- Customers acquired through referrals spend 200% more than the average customer.
- Referrals have a 51% Service Usage, Fresh-Ups have just 29% service usage. – NADA
- Word-of-mouth has been shown to improve marketing effectiveness by up to 54%. – MarketShare
- 77% of consumers are more likely to buy a new product when learning about it from friends or family. – Nielsen
- “Word-of-mouth can prompt a consumer to consider a brand or product in a way that incremental advertising spending simply cannot.” – McKinsey
- 81% of U.S. online consumers’ purchase decisions are influenced by their friends’ social media posts versus 78% who are influenced by the posts of the brands they follow on social media. – Market Force
- 74% of consumers identify word-of-mouth as a key influencer in their purchasing decision. – Ogilvy/Google/TNS
- “And the trend toward word-of-mouth has been accelerating. According to Nielsen, the number of consumers who trust purchase recommendations from friends and family and online consumer opinions has grown rapidly since 2009, surpassing the number of those who trust TV and print media, which has plummeted.” – Boston Consulting Group
- “WOM two times more effective than radio advertisements, four times more than personal selling, seven times more than print advertisements.” – Katz and Lazarsfeld
- Referrals are 4x more valuable than a web lead. – Ken Krogue, President and co-founder of InsideSales.com
- 1 offline word of mouth impression drives sales at least 5x more than 1 paid, and much more (as much as 100 times more) for higher-consideration categories. – WOMMA
- 83% of consumers are willing to refer after a positive experience… but only 29% actually do. –
- Referrals have a 96% CSI, Compared to 73% for Fresh-Ups. – NADA
- 65% of consumers say that receiving rewards impacts their frequency of purchase. – Social Annex
- 69% of consumers say that they’re more likely to try a brand if it gives rewards. – Social Annex
- Referrals have a 61% Closing Rate; Fresh-ups have a 23% Closing Rate. – NADA
- On social media, 58% of consumers share their positive experiences with a company, and ask family, colleagues, and friends for their opinions about brands. – SDL
- When specific case studies were analyzed, researchers found a 10% increase in word-of-mouth (off and online) translated into a sales lifts between 0.2 – 1.5%. – MarketShare/ Keller Fay Group
We know, these referral facts blew our minds too.
Ready to start your own on-brand automated referral marketing program? Then let’s go.