Consumers often trust referrals from people they know. Referral stems from effective word to mouth marketing which is simple and inexpensive. 70% of sales leaders say referrals close faster than any other leads. For an e-commerce business, this has a phenomenal impact.
Is a referral program affordable?
It basically cuts your marketing costs to acquire new customers while incentivating existing customers. You pay a commission to your existing customer only after the referees complete their purchase which creates a fair, win-win system. In this way, referrals give an opportunity to form a viral effect of trust you have built with your existing customers- with almost no cost!
Is a referral program effective?
Referral leads are likely to convert as they have an indirect connection with the earlier customer’s experience. Referred leads have a 16% higher lifetime value, convert 30% better, and have a 37% higher retention rate than other leads. For an e-commerce business, referral makes your customer acquisition cost predictable and above all, they run automatically!
But how likely are your customers ready to refer? Because if they don’t then there is no chain effect. According to a study, 83% of happy customers are likely to give referrals to their friends and families. If the product or service is promising then it will have a staggering effect.
Want to try it for free?
Want to check if it works for you? . If you have a Shopify store, contact us for a free no-obligation trial version of our feature-packed Referrals Made Simple App to unlock the benefits of a simple yet effective referral program.
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