When was the last time you did something like say...buy 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.