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  • Writer's pictureRe-Up Team

The Power of Referral Marketing. Word-of-Video is the new Word-of-Mouth!

When was the last time you did something like a product, watch a movie, order a meal or visit a website? Was it prompted by an advertisement or from someone you knew?

Research proves that referral from a trusted source leads to higher sales conversion for businesses and in the age of social media where we share our experiences in pictures and videos, the word-of-mouth marketing is now digital and brands need to double down on that medium.

Re-Up is a revolutionary platform that has successfully scaled referral advertising by transforming consumers into paid influencers through Word-of-Video marketing. Their mobile app and proprietary video technologies allows anyone to visually engage with products and brands they love, in a more fun and organic way.

See below for some crucial statistics that highlight the benefits of referrals

Referral Marketing Statistics: The Power of Word-of-Mouth

  • The Word of Mouth Marketing Association reports that every day in the United States, there are approximately 2.4 billion brand-related conversations. People frequently talk about the products and services they enjoy, and the companies who offer them.

  • 92% of consumers trust referrals from people they know – Nielsen

  • People are 4 times more likely to buy when referred by a friend – Nielsen

  • 77% of consumers are more likely to buy a new product when learning about it from friends or family. – Nielsen

  • 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

  • 43% of consumers are more likely to buy a new product when learning about it from friends on social media. – Nielsen

  • 84% of consumers say they either completely or somewhat trust recommendations from family, colleagues, and friends about products – making these recommendations the information source ranked highest for trustworthiness. – Nielsen

Referral Marketing Statistics: The Role of Incentives

  • 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

  • 39% of respondents say monetary or material incentives such as discounts, free swag or gift cards greatly increase their chances of referring a brand. –  Software Advice

  • 70% of email readers open emails from a brand or company in search of a deal, discount, or coupon. –  Campaign Monitor

  • 65% of consumers say that receiving rewards impacts their frequency of purchase.

  • 79% of people say their primary reason for “liking” a company’s Facebook page is to get discounts. –  Market Force

  • 64% of consumers say that rewards impact how much they spend.

  • 69% of consumers say that they’re more likely to try a brand if it gives rewards.

Referral Marketing Statistics: The Results

  • Referral Marketing generates 3-5x higher conversion rates than any other channel.

  • The lifetime value of a new referral customer is 16% higher than your average customer. –  Wharton School of Business

  • The Lifetime Value of a referred customer is 25% higher than that of other customers – Wharton School of Business

  • Referred customers bring you 25% higher profit margin.

  • A referred customer is 18% more loyal than a customer acquired by other means

  • Referred customers are 4 times more likely to refer more customers to your brand.

  • Customers referred by other customers have a 37% higher customer retention rate.

  • Customer acquisitions through referrals spend 200% more than the average customer.

#reactonreup #WixBlog #advertising #digitalmarketing #wordofmouth #marketing #digitaladvertising #Youtube #instagram

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